India assures Sri Lanka of support for infrastructure development 

India has assured support for infrastructure development in Sri Lanka as the two countries agreed to strengthen their ties in several sectors. 

Sri Lankan President Anura Kumara Dissanayake, on his first bilateral visit to New Delhi after assuming power in September, thanked India for crucial assistance in restructuring bilateral debt. He met Prime Minister Narendra Modi and discussed the future road map for cooperation. 

The visit comes days after Sri Lanka’s renewed support for the deep-water container terminal project at the Colombo port by a consortium consisting of the Adani Group. 

PM Modi said that along with housing, renewable energy and infrastructure, India will also cooperate for the development of agriculture, dairy and fisheries in Sri Lanka. Dissanayake also assured that his country will not allow its territory to be used in any manner that is detrimental to India’s interest. 

Foreign policy experts feel Dissanayake choosing India as the first overseas destination shows strong relationships between the two countries and also points at enhanced economic and infrastructure cooperation.   

According to reports, DFC financing was part of the US government's broader efforts to counter China's growing influence in the region. 

In an exchange filing last week, Adani Ports and SEZ Ltd said the project is on track for commissioning by early next year and added that the company will fund the ongoing project through internal accruals, aligning with its capital management strategy. 

Sri Lanka said it had no objections to the Adani group's decision to reject a $553 million loan from the US International Development Finance Corporation (DFC) to support the development, construction, and operation of a deep-water container terminal called the Colombo West International Terminal (CWIT) at the Port of Colombo in Sri Lanka. 

The CWIT is being developed by a consortium of Adani Ports, Sri Lankan conglomerate John Keells Holdings Plc, and the Sri Lanka Ports Authority (SLPA). Adani took the decision post-indictment in New York by US lawmakers over alleged bribery issues.    

“It is a very important project for revenue generation for the port, we are keen to see it going ahead,” Sri Lanka’s Ports Minister Bimal Rathnayaka told reporters last week.