16 February 2023 04:31 am
Sri Lanka and India are looking into ways to strengthen their relationship and will step up their efforts with a revised trade agreement and a deal to connect the electricity grids of the two countries.
Moragoda said the island nation is looking to enhance trade and investments as it moves to close a US $ 2.9 billion loan from the International Monetary Fund.
Since Sri Lanka was struck with the economic crisis that brought the country to an almost standstill, the neighboring giant has extended US $ 4 billion in assistance.
“We have to have growth, otherwise basically the economy will shrink,” said Moragoda. “As far as growth is concerned, India offers that prospect. So, we will have to move on that. Tourism from India, investment from India, integration with India. That’s what we have to do,” he added.
An integral part of Sri Lanka’s economic recovery plan depends on uplifting its renewable energy resources in the Northern province, from where power can be transported into southern India through a cross-border transmission cable.
“We need to have more sources of foreign exchange and electricity will be ideal,” said Moragoda. While Sri Lanka will soon nominate a team for negotiations, the focus on trade enhancement will be in sectors including textiles and garments, a major foreign exchange earner for
Sri Lanka.