India-Sri Lanka focus on infrastructure projects; updating FTA to boost Comprehensive Partnership

Foreign Secretary Vikram Misri met with Sri Lankan President Anura Kumara Dissanayake and top leaders in Colombo on Wednesday and both sides reviewed infrastructure projects, advanced talks on updating the Free Trade Agreement, finalized a Social Security Agreement, and exchanged Indian Rupee-denominated credit line agreement.


During the visit, the Foreign Secretary also called on Prime Minister of Sri Lanka, Dr. Harini Amarasuriya; and Minister of Foreign Affairs, Foreign Employment & Tourism, Vijitha Herath. He also held discussions with Secretary of Foreign Affairs, Foreign Employment & Tourism Aruni Ranaraja. Foreign Secretary also met with Leader of Opposition Sajith Premadasa and had separate meetings with leaders of Sri Lankan Tamil and Indian Origin Tamil (IOT) community.


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During his meetings, both sides undertook a comprehensive review of the ongoing cooperation on bilateral issues and projects between India and Sri Lanka.

They expressed satisfaction at the progress registered in the implementation of various projects, including under the reconstruction package of USD 450 million, announced following cyclone Ditwah. In particular, they welcomed the conclusion of agreements on two Indian Rupee-denominated Lines of Credit of USD 250 million for the railway projects and of USD 100 million for livestock and other priority requirements respectively.

The agreements concluded between EXIM Bank of India and Ministry of Finance of Sri Lanka were exchanged during the visit. Both sides also noted that reconstruction of damaged houses and construction of permanent bridges under the Ditwah Reconstruction Package and covered under a grant of USD 100 million will commence shortly. Progress has also been registered on supply of medical equipment for a relocated Deniyaya Hospital, on which an MoU was signed on 13 July, supply of medical kiosks in Sri Lanka, and supply of equipment to educational institutions across the Island.

Both sides are also working towards the earliest possible implementation of an Island wide disaster warning system for Sri Lanka. They also expressed satisfaction that the work on rehabilitation of the Northern Railway corridor under a grant of USD 5 million has been completed and train services have resumed.

The two sides also discussed modalities for expediting implementation of energy projects, including electricity grid interconnection project, Sampur solar power project and development of Trincomalee as an energy hub. They also agreed to work towards the earliest possible conclusion of tender process for implementation of the Sri Lanka Unique Digital Identity project. They also directed that discussions be initiated at the earliest to conclude an MoU on rehabilitation and modernisation of Kankesanthurai harbour project, to be implemented under a grant of USD 61.5 million.

Recalling the commitment made during the visit of Prime Minister of India to Sri Lanka in April 2025, the two sides agreed that the MoU to implement the proposed expansion of the 1990 Suwa Seriya Ambulance service should be concluded at an early date. The initiative on capacity building announced during the visit of the Prime Minister last year has also been implemented successfully, covering over 1,000 Sri Lankan professionals from different sectors in its first year.

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Noting recent progress on implementation of the Phase-IV of the Indian Housing Project for the plantation community, the Foreign Secretary urged the Sri Lankan side to expedite implementation of the various projects for the IOT community, including the implementation of construction of all 10,000 houses for the IOTs announced during the visit of Prime Minister of India to Sri Lanka in 2017.

Both sides welcomed the initial discussions in June this year and the decision to take forward negotiations on updating the Free Trade Agreement between India and Sri Lanka. They also welcomed the successful conclusion of negotiations on India-Sri Lanka Social Security Agreement. The Agreement is expected to be signed soon following completion of necessary internal procedures on both sides.

He also welcomed President Anura Kumara Disanayaka’s assurances as contained in the Joint Statement of December 2024 that Sri Lankan territory shall not be permitted to be used in any manner inimical to the security of India and conveyed that this provides a strong foundation to build a comprehensive and mutually beneficial development partnership.