NEW DELHI: Amid growing Chinese footprint in the Indian Ocean, India signed its first ever MoU for defence cooperation with Sri Lanka that will help both sides formalise and enhance cooperation between their armed forces. The agreement was one of the highlights of PM Narendra Modi’s ongoing visit to the strategically-located neighbour that also saw a major boost for energy ties in the form of a grid inter-connectivity agreement that will allow Sri Lanka to export electricity and another MoU for developing Trincomalee as an energy hub.
The bilateral meeting was followed by signing of seven MoUs and agreements. The leaders acknowledged that the security interests of India and Sri Lanka are interlinked and the President reassured India that he won’t allow Lankan land or, as foreign secretary Vikram Misri recalled after the bilateral meeting, the oceans around it to be used in any way inimical to India’s security interests or regional stability.
“We believe that we have shared security interests. The security of both countries is interconnected and co-dependent,” said Modi, thanking Dissanayake for his sensitivity towards India’s interests.
Modi also announced a debt restructuring agreement that he said will provide immediate assistance and relief to the people of Sri Lanka, along with reduced interest rates on loans. “Today, we have also decided to reduce interest rates. It symbolises that even today, India stands with the people of Sri Lanka. For the social and economic development of the Eastern Provinces, a support package of approximately 2.4 billion Lankan rupees (around Rs 70 crore) will be provided,” he said. India had earlier extended an aid package worth $4 billion to Sri Lanka to help the Indian Ocean country from a food and fuel crisis.
Modi, the first foreign leader to visit Sri Lanka since the President assumed office last year, quoted Tamil poet Thiruvalluvar to say that in the face of challenges and enemies, there is no stronger assurance than a true friend and the shield of his friendship.