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DEVELOPMENT CO-OPERATION
India’s development partnership with Sri Lanka is built on foundations of political understanding, a historic past, geographic realities and socio-cultural convergence. Since 2005, GoI has committed more than USD 5 billion to Sri Lanka, out of which more than USD 600 million is grant assistance alone. GoI's developmental assistance projects are based on the priorities set by the Government and the people of Sri Lanka. They have been widely appreciated for their transparent approach and implementation through recourse to local materials and manpower, in a manner that supports local economies. The assistance focuses specially on capacity-building, human resources development, uplifting of weaker sections as well as infrastructure development, in addition to various other aspects pertaining to daily lives such as housing, education, health, industrial development, livelihood support, transport etc.
2. GOI’s overall approach to development cooperation has been continuously evolving both in terms of the nature of projects as well as implementation modalities. A case in point is the INR 300 crore grant assistance for Sri Lanka Unique Digital Identity (SLUDI) project which could be a force multiplier in terms of citizen-centric governance and access to services. The project is envisioned as the foundational piece that would unlock an array of Digital Public Infrastructure services to the people of Sri Lanka.
3. The Indian Housing Project, with commitment to build 60,000 houses in war affected areas and in the plantation areas, is Government of India (GoI)’s flagship grant project in Sri Lanka with an overall commitment of around INR 1835 crore in grant. It is the largest such project undertaken by the GoI overseas. The first phase (Phase-I) of construction of 1,000 houses in the Northern Province was completed in July 2012.
The second phase (Phase-II) consisting of 45,000 houses in the Northern and Eastern Provinces was launched on the birth anniversary of Mahatma Gandhi on 2 October 2012 and was completed in 2016. It was implemented under an innovative owner-driven model, wherein the owner-beneficiaries undertake the construction/repair of their houses themselves and GoI arranges technical support and financial assistance.
The third phase (Phase-III) of the Housing Project envisages construction of 4000 houses to be built under the community-driven model for estate workers in plantation regions. More than 3900 houses have been completed (as of October 2024) and construction of remaining houses is at various stages of completion.
During the visit of Prime Minister Narendra Modi to Sri Lanka in May 2017, an additional 10,000 houses in the plantation areas were announced under Phase IV of the Housing Project. Foundation stone for the project was laid virtually by Finance Minister of India, Ms. Nirmala Seetharaman during her visit to Sri Lanka on 2 November 2023 along with then President of Sri Lanka, Mr. Ranil Wickremesinghe. Later, High Commissioner of India symbolically launched the commencement of construction along with the President of Sri Lanka on 19 February 2024. Based on request from Sri Lankan side, India revised the unit cost of a house under this Phase to SLR 2.8 million, which is almost a three-fold increase from Phase III.
4. Prime Minister Narendra Modi announced a dedicated grant of USD 15 million for the promotion of Buddhist ties between India and Sri Lanka during the Virtual Bilateral Summit in September 2020. MOU governing the grant was signed in March 2022 and later amended in November 2023 during the visit of Finance Minister Nirmala Seetharaman to Sri Lanka. The first project to be undertaken under this grant is solar electrification of Buddhist places of worship worth around USD 10 million. Sri Lankan side is undertaking necessary measures for early roll out of the project.
5. Prime Minister Narendra Modi announced a comprehensive grant assistance package to the tune of INR 75 crore during the visit of President of Sri Lanka to India in July 2023. This special package was to mark 200 years of the arrival of Indian origin Tamil community to Sri Lanka. The package encompasses different projects under various categories such as Education and skill development; Livelihood assistance; Infrastructure development; Food Security; and others in plantation areas of Sri Lanka. Four projects namely teacher training program in STEM subjects for over 2000 school teachers from plantation area, supply of 4000 solar lanterns, supply of 30000 notebooks and 10000 schoolbags have been undertaken under the package.
6. Prime Minister Narendra Modi announced a grant assistance package covering the three Districts of Eastern Province namely Ampara, Batticaloa and Trincomalee in July 2023, during the visit of President of Sri Lanka to India. A framework MOU to support 33 different socio-economic development projects is close to being finalized for implementation. The quantum of the package is around INR 64 crore.
7. Another important grant project to construct Hybrid Renewable Energy Systems in three islands off Jaffna that are not connected to the national grid is ongoing with GoI financial commitment of upto USD 11 million. The project combines solar, wind and diesel generator with battery backup and caters to Nainativu, Analativu and Delft islands. Taken together, the combined output is close to 4.3 MW.
8. The country-wide 1990 Emergency Ambulance Service is another flagship project. The Service which was initially launched in July 2016 in Western and Southern Provinces of Sri Lanka was later expanded to all the Provinces. At a total cost of more than USD 22.5 million, close to 300 ambulances were provided by GOI under this project. The Emergency Service has been rendering critical medical assistance across Sri Lanka since its launch.
9. An iconic Cultural Center through GoI grant assistance of around US$ 12 million has been set up in Jaffna. This state-of-the-art facility consists of multiple facilities such as a museum of two floors; an advanced theatre style auditorium for more than 600 people; a 11-storeyed learning tower; a public square which could also act as an amphitheater; etc. The Center was virtually inaugurated during the visit of External Affairs Minister Dr. S. Jaishankar to Sri Lanka in March 2022 and later dedicated to the people by President Ranil Wickremesinghe on 11 February 2023 during the visit of Minister of State for Fisheries, Animal Husbandry & Dairying and Information & Broadcasting.
10. Some of other notable grant projects which have been completed are: 150-bed multi-specialty hospital in Dickoya, inaugurated by Prime Minister Narendra Modi during his visit in May 2017, livelihood assistance to nearly 70,000 people from fishing and farming community in Hambantota, supply of medical equipment to Vavuniya Hospital and 150 Boats and Fishing gear for Mullaithivu fishermen. A modern 1500 - seat auditorium named after Rabindranath Tagore in Ruhuna University, Matara, is the largest in any University in Sri Lanka. A two-story state-of-the-art surgical unit at Teaching Hospital Batticaloa with an approximate total floor area of 1464 square meters, with four operation theatres and ten ICU beds, built with Indian grant assistance was inaugurated on 04 November 2024.
11. There are currently 24 grant projects ongoing across diverse spheres in Sri Lanka. These include projects like 5000 MT temperature-controlled warehouse for perishable agriculture produce in Dambulla; construction of houses and infrastructure facilities in Ven. Shobitha Thero Village in Anuradhapura; Upgradation of selected Plantation schools; Construction of 600 houses under Model Village Housing Project in 25 districts of Sri Lanka; Transit housing units for pilgrims to Madhu Shrine, Mannar etc.