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India plans investments across sectors to strengthen link with Sri Lankan economy.
Aug 11, 2022
New Delhi plans to invest in Sri Lanka across sectors through both private and public firms and interconnect the Lankan economy with the Indian economy to boost the sagging fortunes of the island nation.
The sectors that India is focusing to invest include renewable energy, hydrocarbons, ports and infrastructure, IT and hospitality, highly placed sources told ET.
Sources claimed that notwithstanding the crisis, Indian investors in the island nation are not willing to wrap up their investments and businesses given Sri Lanka's strategic location and potential.
Sri Lanka is an economy having three main sources of revenue - exports, tourism and remittances. Due to Covid, some of these sources dried up completely. The Sri Lankan economy will benefit from more investments and the Indian government is trying to facilitate this.
The idea is to engage with the Ranil government for promoting greater trade, investment and more cooperation between the two economies. The NTPC is looking at establishing a solar power plant in Sampur in eastern Sri Lanka near Trincomalee, under a joint collaboration with the Ceylon Electricity Board (CEB).
Since January this year, India has offered aid and humanitarian assistance of around $4 billion to Sri Lanka, the largest ever given to any country, to help the nation meet its shortage of food, fuel, medicines and other essential items. Besides Sri Lanka has given approval for India's Lanka Indian Oil Corporation NSE -2.21 % (LIOC) to open 50 new fuel stations and this will be followed by another 150 stations with the total number of stations going up to around 500 in the next few months to meet fuel shortage.
economictimes.indiatimes.com
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