India Proposes $450 Million Aid Package for Sri Lanka After Cyclone Ditwah, Vows Support Through Tourism and Investment: Jaishankar

External Affairs Minister S Jaishankar said on Tuesday that India will continue to back Sri Lanka beyond emergency relief by strengthening tourism links and expanding investment cooperation. 

“There are other ways by which India can and will be of support to Sri Lanka. You are a significant tourism economy and let me assure you that we will continue to encourage tourism traffic from India in that regard,” Jaishankar said, speaking alongside Sri Lanka’s Foreign Minister Vijitha Herath in Colombo.

India Proposes $450 Million Reconstruction Aid for Sri Lanka

Addressing the media, Jaishankar also announced that India has proposed a USD 450 million assistance package to help Sri Lanka’s reconstruction efforts following Cyclone Ditwah.

The announcement came after the completion of the immediate humanitarian phase under Operation Sagar Bandhu, India’s rapid relief response to the cyclone-hit island nation.

Speaking in Colombo as a special envoy of Prime Minister Narendra Modi, Jaishankar said the assistance reflects India’s role as a first responder in the region.

“The letter from PM Modi that I handed over builds on our first responder role and commits a reconstruction package of USD 450 million to Sri Lanka,” he said.

Operation Sagar Bandhu Delivers 1,100 Tonnes of Relief

Jaishankar highlighted the scale of India’s initial relief efforts, stating that Operation Sagar Bandhu delivered around 1,100 tonnes of relief material, along with 14.5 tonnes of medicines and medical equipment.

He said Prime Minister Modi has now directed Indian officials to work closely with the Sri Lankan government to identify and address rebuilding priorities.

“Recognising the urgency of rebuilding, Prime Minister Modi directed that we now engage with the Sri Lankan Government to address their priorities in that regard. The assistance package that we have proposed is worth USD 450 million. It will include USD 350 million in concessional Lines of Credit and USD 100 million of grants. This package is being finalized in close consultations with the Government of Sri Lanka. Our assistance will cover sectors worst affected by the cyclone,” Jaishankar said.

India Vows Support Through Tourism, Investment

Jaishankar also stressed that India would continue to support Sri Lanka’s broader economic recovery. He said tourism remains a crucial sector for Sri Lanka and assured continued efforts to encourage travel from India.

He also pointed to the role of Indian investment in strengthening the Sri Lankan economy at a difficult time.

“An increase in foreign direct investment from India can also boost your economy at a critical time,” he said, adding that discussions between the two sides would focus on deepening cooperation.

Acknowledging the pressures facing Sri Lanka, Jaishankar said the country was dealing with fresh challenges just as it was recovering from the 2022 economic crisis.

“We fully recognise that this is a challenging period for Sri Lanka. Just as it was recovering from the economic crisis of 2022, this natural disaster created new difficulties,” he said.

Jaishankar arrived in Colombo on Monday evening and was received by Deputy Minister of Tourism Ruwan Ranasinghe.

(Inputs from ANI)