Cyclone Ditwah: India proposes USD 450M aid for Sri Lanka recovery

EAM S Jaishankar announced India's USD 450 million reconstruction package for cyclone-hit Sri Lanka. The aid, including a USD 350M credit line and USD 100M grant, follows India's initial 'Operation Sagar Bandhu' humanitarian response.

External Affairs Minister S Jaishankar announced on Tuesday that India has proposed a comprehensive USD 450 million assistance package to support Sri Lanka's reconstruction efforts following Cyclone Ditwah. The announcement follows the successful completion of the immediate humanitarian phase under Operation Sagar Bandhu, India's rapid response to the crisis.

Speaking in Colombo as a special envoy of Prime Minister Narendra Modi, Jaishankar emphasised India's commitment to its neighbour during a uniquely challenging period, saying "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."

Operation Sagar Bandhu: The Initial Relief

Jaishankar detailed the scale of the initial relief efforts, noting that the operation "delivered around 1100 tonnes of relief material" and "about 14.5 tonnes of medicines and medical equipment were also provided."

Proposed Reconstruction Assistance

Highlighting New Delhi's continued engagement with Colombo, the Jaishankar said PM Modi has directed officials to work closely with the Sri Lankan government to address rebuilding priorities. "Recognising the urgency of rebuilding, PM Modi directed that we now engage with the Sri Lankan government to address their priority in that regard," Jaishankar said.

USD 450 Million Package Breakdown

He outlined the proposed assistance package, stating, "The assistance package that we have proposed is worth USD 450 million. It will include USD 350 million in a Concessional line of credit and USD 100 million in grants." Jaishankar stated.

The USD 450 million package is currently being "finalised in close consultation with the government of Sri Lanka" to ensure the funds are directed toward the most critical infrastructure and recovery needs.

'Neighbourhood First' in Action

This latest move reaffirms India's "Neighbourhood First" policy, positioning New Delhi as the first responder and a steady partner in Sri Lanka's path to stability.

Sustained Economic Engagement

Beyond immediate relief and reconstruction, Jaishankar underlined India's intention to support Sri Lanka's economic recovery through sustained engagement. "Let me assure you that we will continue to encourage tourism traffic from India in that regard," he said, pointing to tourism as a key driver for Sri Lanka's economy. He also highlighted the role of Indian investments, noting, "An increase in foreign direct investment from India can also boost your economy at a critical time."

Acknowledging the challenges faced by Sri Lanka, Jaishankar said the country was once again under pressure just as it was emerging from past difficulties. "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 landed in Colombo on Monday evening and was received by Deputy Minister of Tourism Ruwan Ranasinghe. (ANI)

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