COLOMBO/NEW DELHI, July 20 (Reuters) – Sri Lankan President Ranil Wickremesinghe arrives in New Delhi on Thursday on a two-day go to hoping to strengthen financial ties between the South Asian international locations.

Strategically essential power, energy and port initiatives might be mentioned throughout his assembly with Indian Prime Minister Narendra Modi on Friday, officers from each international locations mentioned.

In his first journey to India since he took over because the president a yr in the past after his predecessor was pressured to stop following widespread protests, Wickremesinghe additionally will replace New Delhi on progress made to stabilize the island’s crisis-hit economic system.

India’s help was important for Sri Lanka final yr after it virtually ran out of {dollars} and sank right into a monetary disaster that left it struggling to fund important imports together with gas and drugs.

India offered about $4 billion in fast help between January and July 2022, together with credit score traces, a currency-swap association and deferred import funds, and despatched a warship carrying important medicine for the island’s 22 million individuals.

While New Delhi has historically had sturdy ties with its southern neighbour, the small island nation has change into a jousting floor between India and China attributable to its strategic location within the Indian Ocean.

An Indian official, talking anonymously as a result of he isn’t authorised to talk to journalists, mentioned an settlement for improvement initiatives within the northeastern coastal metropolis of Trincomalee might be introduced through the go to, together with one other settlement for renewable power initiatives.

In October, Wickremesinghe unveiled a blueprint for Trincomalee together with a proposal to work with India to develop a strategic port, a brand new industrial zone and an power hub, in accordance with particulars launched by his workplace.

Additionally, the 2 nations will produce a joint assertion for supporting Sri Lanka’s dairy sector.

Improving connectivity between the 2 international locations will even determine prominently through the bilateral talks, officers on each side mentioned.

The two sides have had preliminary discussions for an undersea cable which might join their energy grids and a gas pipeline from southern India’s mainland to northern Sri Lanka – initiatives that might collectively value at the very least $4 billion, in accordance with officers on each side.

Colombo will concentrate on grid connectivity with India, port improvement and renewable power initiatives, largely within the northern a part of the island, Foreign Minister Ali Sabry had told reporters.

Progress on debt restructuring will even be mentioned, Sri Lanka’s Cabinet spokesman and Transport Minister Bandula Gunawardena mentioned on Tuesday, as India is a key creditor to the island with $1.9 billion in excellent debt.

Sri Lanka defaulted on its overseas debt final May and India is a part of a standard platform established with Japan and different Paris Club members to assist the island restructure its debt.

In the power sector, India’s state-run NTPC (NTPC.NS) is engaged on a 100-megawatt solar energy plant in Trincomalee district.

The Sri Lankan authorities additionally accredited two wind power plants on its northwest coast by India’s Adani Green Energy Ltd (ADNA.NS) in February with a complete funding of $442 million.

Reporting by Uditha Jayasinghe in Colombo, Krishn Kaushik in New Delhi; Editing by Kim Coghill

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