1.  The President of Sri Lanka H.E. Mahinda Rajapaksa is currently in India on a State Visit. He is accompanied by Mrs. Shiranthi Rajapaksa and a high-level delegation, including three Cabinet Ministers.

2. This morning, he was accorded a ceremonial welcome at Rashtrapati Bhavan. External Affairs Minister and the Finance Minister called on him. The Leader of Opposition and the Chairperson of the UPA are also calling on him. A delegation of MPs from Tamil Nadu is also meeting him in the afternoon.

3.  He had a meeting with Prime Minister followed by delegation-level talks. Seven Agreements and MOUs were signed.

4. The talks between Prime Minister and President Rajapaksa were wide-ranging and encompassed a range of issues reflecting the multi-faceted nature of our relationship. The two leaders shared their vision of the future of India-Sri Lanka relations and agreed that President Rajapaksa’s visit provided an opportunity to lay the foundation for a forward-looking comprehensive agenda for bilateral engagement. These shared understandings are reflected in a Joint Declaration which will be issued shortly.

5. Our Prime Minister emphasised that Sri Lanka’s emergence from decades of conflict offered a historic opportunity to spearhead an era of reconciliation where all communities can come together to realise a political settlement. Prime Minister also observed that a meaningful devolution package, building upon the 13th Amendment, would create the necessary conditions for this purpose. In particular, Prime Minister emphasised the need for urgent steps to resettle the remaining idPs and urged Sri Lanka to undertake speedy rehabilitation and reconstruction efforts in the Northern and Eastern Sri Lanka. Prime Minister also referred to the extensive assistance being provided by India for these efforts including Rs.500 crores as grant and about US$ 800 million as lines of credit for railway projects.

6. Both leaders announced a major initiative to undertake a programme of construction of 50,000 houses for Internally Displaced Persons in Northern and Eastern Provinces of Sri Lanka. This will be done with Indian assistance.

7. India will also be taking up several projects for the reconstruction of the North and the East, including rebuilding of railway infrastructure, rehabilitation of Kankesanthurai harbour and Palaly Airport, construction of a cultural centre in Jaffna and several vocational training centres, renovation of the Duraiappah stadium, rehabilitation of war widows, etc.

8. In order to assist setting up of the NTPC-CEB Joint Venture of 500 MW Thermal Power Plant at Trincomalee in Eastern Sri Lanka, India will be extending a line of credit of US$ 200 million. The relevant agreements to set up the power plant will be concluded within three months.

9. We have also signed an agreement to conduct a feasibility study for the inter-connection of the Indian and Sri Lankan electricity grids.

10. Both countries have also decided to resume the ferry services between Colombo and Tuticoran and between Thalaimannar and Rameswaram in keeping with the desire to restore traditional links between the two countries.

11. India would also establish Consulates General in Jaffna and Hambantota.

12. The two leaders noted the progress achieved under the India-Sri Lanka Free Trade Agreement and agreed that it would be timely to build on this achievement through a more comprehensive framework of economic cooperation. They have directed officials to hold intensive consultations on such a framework.

13.    We have also agreed to launch a CEOs Forum to involve the business community in a dialogue to generate ideas to deepen and broaden the bilateral economic partnership.

14. Another significant initiative announced by the two leaders was the India-Sri Lanka Knowledge Initiative. Under this initiative, the Government of India will support the University of Colombo to establish a Centre for Contemporary Indian Studies. We have announced a major expansion of our scholarship programmes in Sri Lanka. We will be assisting in English language education in Sri Lanka under the aegis of the newly-established Sri Lanka-India Centre for English Language Training at Kandy and its regional and provincial centres. We will also provide technical assistance for the Presidential initiative on Trilingual Society in Sri Lanka and collaborate in the establishment of a research institute on agriculture in the Northern Province.

15. The two leaders have agreed that the 2600th Year of the Enlightenment of Lord Buddha (Sumbuddhatva Jayanthi) will be commemorated through joint activities.

16. We have also agreed to assist in the restoration of the sacred Tiruketheeswaram Temple at Mannar, Sri Lanka.

17. In order to explore way to strengthen the safety and security of our fishermen, the two sides agreed to resume the discussions under the Joint Working Group on Fishing and promote contacts between the fishermen’s association on both sides.

18. Sri Lanka has reaffirmed its support for the candidature of India as a Permanent Member of an expanded UN Security Council, as also for India’s candidature for a non-permanent seat on the UN Security Council for 2011-2012.

New Delhi