India, Sri Lanka exchange agreements on INR-denominated Lines of Credit worth USD 350 million
Colombo: India and Sri Lanka have exchanged agreements on Indian Rupee-denominated Lines of Credit worth USD 350 million, forming part of a larger USD 450 million reconstruction package extended by New Delhi following the destruction caused by Cyclone Ditwah.
The agreements were exchanged after a meeting between India’s Foreign Secretary Vikram Misri and Sri Lankan President Anura Kumara Dissanayake in Colombo. The discussions focused on bilateral cooperation, ongoing development initiatives and India-assisted projects in Sri Lanka.
India’s High Commissioner to Sri Lanka, Santosh Jha, along with other officials, was present during the meeting.
The Indian High Commission in Sri Lanka said on X, “Foreign Secretary Shri. Vikram Misri called on President of Sri Lanka H.E Anura Kumara Dissanayake in Colombo. Discussions focused on issues of mutual interest and review of key bilateral projects, including India-assisted development projects in Sri Lanka.”
Following the meeting, the mission said, “Following the meeting, both sides exchanged agreements on INR-denominated Lines of Credit for USD 350 mn, which form part of the USD 450 mn reconstruction package extended by 🇮🇳 in the wake of Cyclone Ditwah. The LoCs will support reconstruction, infrastructure development, and procurement requirements that arose in the aftermath of the cyclone.”
The exchange of agreements comes as both countries continue efforts to expand economic and development cooperation. The Lines of Credit are expected to support reconstruction requirements linked to areas affected by the cyclone, including infrastructure recovery and essential procurement.
Earlier during his visit, Misri held discussions with Sri Lankan Foreign Secretary Aruni Ranaraja, with both sides reviewing regional and global issues of mutual interest and ways to further strengthen bilateral relations.
The Indian High Commission said, “Foreign Secretary Shri Vikram Misri met Sri Lankan Foreign Secretary Ms Aruni Ranaraja during his ongoing visit to Colombo. They discussed regional and global issues of mutual interest, and ways to further deepen close bilateral ties. India’s Foreign Secretary reinforced Sri Lanka’s Central role in India’s Neighbourhood First Policy and in advancing Vision MAHASAGAR.”
Misri also met Sri Lankan Foreign Minister Vijitha Herath, where discussions covered ongoing cooperation in key priority sectors.
The Indian mission stated, “Foreign Secretary Shri Vikram Misri called on the Foreign Minister of Sri Lanka, Hon’ble Vijitha Herath, during his visit to Colombo. Ongoing cooperation in key priority areas was reviewed during the meeting.”
India’s USD 450 million reconstruction package was announced after Cyclone Ditwah caused widespread damage in Sri Lanka. The package covers rehabilitation and restoration of road, railway and bridge connectivity, reconstruction of damaged houses, support for health and education sectors affected by the cyclone, agricultural assistance and measures to improve disaster response and preparedness.
The latest agreements highlight India’s continued engagement with Sri Lanka under its neighbourhood-focused foreign policy approach. The two countries have maintained close economic, development and strategic cooperation, with infrastructure and humanitarian assistance forming key areas of partnership.
The discussions in Colombo also come amid efforts by both governments to advance cooperation across multiple sectors and strengthen long-term bilateral relations.
