PM Modi in Sri Lanka: Key takeaways as India loosens purse strings to keep China at bay

Colombo: On his first day of visit to Sri Lanka, Prime Minister Narendra Modi today focussed on strengthening bilateral ties between the two South Asian neighbours. The visiting prime minister concentrated on issues related to economy and those with political aspects. Here is a list of specific takeaways from Modi’s ongoing Sri Lanka visit: [caption id=“attachment_2152699” align=“alignleft” width=“380”]  Prime Minister Narendra Modi and the Sri Lanka President Maithripala Sirisena at the Joint Press Statement, in Colombo, Sri Lanka on 13 March 2015. Image courtesy PIB[/caption] Financial assistance: India today committed further assistance of up to $318 million to Sri Lanka’s railway sector which will be over and above the figure of $1.6 billion which India has committed to the island nation in development assistance. This brings Indian financial assistance to Sri Lanka close to $2 billion, conveying the importance India attaches to Sri Lanka. Is this figure enough to outmatch and outplay China in Sri Lanka is entirely another story. Currency: The Reserve Bank of India and the Central Bank of Sri Lanka have agreed to enter into a Currency Swap Agreement of $ 1.5 billion, a measure that will help keep the Sri Lankan Rupee (SLR) stable. The SLR has weakened by three percent in a very short period recently. Ocean Economy: This is the new term that has popped up on diplomatic radar screens, especially in context of India’s outreach to Indian Ocean states, including Sri Lanka. One should hear this term more often in coming months and years. This is in tandem with India's Ocean diplomacy which _Firstpost_ already wrote about . In his engagements with his Sri Lankan interlocutors Modi described ocean economy as a new frontier that holds enormous promise for both the sides. “It is a priority for our two countries. Our decision to set up a Joint Task Force on Ocean Economy is a significant step, especially because of our proximity,” Modi said. Energy: As is the trend in all major bilateral engagements among nations the world over, energy security is now beginning to acquire major thrust in India-Sri Lanka deliberations too. As a result, Lanka IOC and Ceylon Petroleum Corporation on Friday agreed to jointly develop the Upper Tank Farm of the China Bay Installation in Trincomalee on mutually agreed terms. A Joint Task Force will be constituted soon to work out the modalities. India stands ready to help Trincomalee become a regional petroleum hub. Coal is another area of cooperation and India has hinted at early commencement of work on the ground in the Sampur Coal Power Project which would meet Sri Lanka’s energy needs. People-to-People Contacts: But nothing is more important than people-to-people contacts between two nations. This is what Modi focused on in his talks with Sirisena and his senior colleagues. As a result, a slew of decisions have been taken by the two countries to encourage people-to-people contacts, improve connectivity and increase tourism. Prominent among these are as follows: (i) India will extend the facility of “Tourist Visa on Arrival - Electronic Travel Authorization” Scheme to Sri Lankan citizens from the Sinhala and Tamil New Year on 14 April 2015; (ii) Air India will soon start direct flights between New Delhi and Colombo; (iii) India will cooperate in developing a Ramayana Trail in Sri Lanka and a Buddhist Circuit in India; (iv) India will organize a Festival of India in Sri Lanka later this year. Sri Lanka is where Buddhism has truly flourished. India will be organising an exhibition showcasing our Buddhist heritage as part of this festival.