On the auspicious occasion of the 60th Independence Day of India, I extend my warm good wishes to my fellow Indians and to the Government and the people of the Democratic Socialist Republic of Sri Lanka.

India is today at the forefront of nations marching ahead into the modern, globalized world of tomorrow. It is not just the annual GDP growth rate of over 8%, the booming and highly diversified economy, the large pool of technically qualified manpower, the largest film and entertainment industry in the world, the growing list of book titles in a vibrant publishing industry or the independent and diversified free press, that alone contribute to India's position. Most crucially, it is the idea of India which accounts for our position in the world, the determination of our people to enhance productive enterprise and the unity in diversity that India represents. Indeed the civilizational oneness that characterises the Indian subcontinent makes the South Asian region one of abiding fascination and interest for the world.

At such a moment in our history, it would be useful to take stock of how far India has come from her early days after independence. The most striking change today is the economic progress made by India and also the nature of the economic expansion. The entrepreneur underpins India's success story. 30 to 40% of GDP growth rate is due to rising productivity - a true sign of an economy's health and progress - rather than merely due to increases in the amount of capital in the economy. India has internationally competitive private companies, a booming stock market and a modern, well-disciplined financial sector. Trade policy in India has lowered trade barriers and tax rates, exposed domestic industry to global competition and has opened up more and more of its sectors to foreign investment. Of the Fortune 500 companies, 125 now have research and development bases in India - thanks to the high quality of human resources available there. More and more Indian companies are investing in other countries and becoming world players. The recent example of Indian steel magnate Lakshmi Mittal's acquisition of the European steel firm of Arcelor comes to mind as Mittal's consolidated steel company will now be among the top three steel producers in the world. Indian business tycoon Vijay Mallya's company McDowell & Company has acquired French wine maker Bouvet Ladubay SAS, the wine subsidiary of French champagne house Taittinger, in another high value deal. It must be remembered however that the entire progress of the Indian economy rests on the hard working, resilient and innovative people of India.

Our people have time and again demonstrated the ability to rise above attempts to crush their spirit and have emerged from such crises with a renewed determination to fight anti- national forces. The aftermath of the inhuman terrorist attacks in Mumbai and Srinagar on 11th July 2006, attacks, which showed the utter disregard of terrorists for human lives, demonstrate clearly this resolve of the Indian people. These attacks claimed nearly 200 lives and have injured scores of others. I would like to quote here an excerpt from the resolution passed by the Indian Cabinet on this tragic occasion: "The Government reiterates its strong commitment to combat terrorism in all its forms. Nothing will deter us from our firm policy to fight this menace till it is wiped out. We are determined to apprehend and bring to justice all those responsible for the evil acts in Mumbai and Srinagar.
The Cabinet, simultaneously, pays tribute to the people of Mumbai and Srinagar for their resolve to triumph over terrorism and return quickly to normal life. The spontaneous response of Mumbai's citizens to provide succour to those in pain stands out strikingly. It is a towering example of fellowship and the best in human beings. The Cabinet also acknowledges the truly laudable work done in Mumbai by the public services, firemen, railway staff and medical personnel in providing relief.
The Cabinet recognizes the tremendous resolve, displayed over the years, by the people of Jammu and Kashmir to withstand terrorism. They have not let these influences impair our national unity and secular fabric. The spirit displayed by Mumbai and Srinagar has demonstrated very emphatically that terrorism cannot succeed. Such forces will never be allowed to check our nation's march to economic growth and prosperity."

The people of Sri Lanka have also demonstrated a similar resilience in surmounting the myriad challenges that face them. These challenges are growing. India has an abiding commitment to the unity, sovereignty and territorial integrity of Sri Lanka. We appreciate the Government's resolve to build a national consensus on a solution within a united Sri Lanka and on the basis of maximum devolution. We stand ready to share with Sri Lanka our own experience of unity in diversity, plural democracy and devolution.
Violence will only beget more violence and will vitiate the climate for political dialogue. The only way forward is a peaceful, negotiated settlement. We believe that today more than ever, special efforts are required to strengthen the ceasefire and work towards a devolution package that could command consensus among the major political parties, restore ethnic harmony and expeditiously address the legitimate aspirations of all sections of Sri Lankan society.
Our region is set to implement SAFTA which has become operational since 1 July 2006 this year. Provided that all member countries implement all the provisions of SAFTA in the right spirit, this development will ensure that prospects for regional trade and prosperity grow. India is negotiating a number of preferential trade agreements with countries and multi-lateral bodies such as ASEAN, Gulf Cooperation Council and the South African Development Community. India could thus become the engine for economic integration in the Indian Ocean Region.

Bilateral economic and commercial relations continue to take forward strides with trade crossing the US $ 2 billion mark in 2005. Bilateral trade has quadrupled in the last six years since the India-Sri Lanka FTA came into force in March 2000. India is the biggest source for Sri Lankan imports and accounts for almost 17% of total imports. India is also the third largest export destination. The trade gap while being in India's favour, has started narrowing. As compared to 10:1 in 2000, the ratio of Sri Lankan exports to its imports from India has come down to 2.4:1. About 90% of Sri Lanka's exports to India are under the FTA.

Indian investments in Sri Lanka have also showed similar progress catapulting India to the second position in terms of overall investments. Sri Lankan investments in India have also been on the rise. Sri Lankan brand names like Brandix, MAS, Dankotuwa, Munchee, Siddhalepa and Dilmah are gaining increasing recognition. India's commitment to socio-economic development in Sri Lanka is embodied by projects being undertaken under concessional lending schemes. These include refurbishment of the Colombo to Galle railway line, setting up of hospital at Dickoya and a cancer hospital in Colombo. The National Power Corporation, in a joint venture with Ceylon Electricity Board, is planning to set up a 500 MW power plant in Trincomalee.

Through schemes of technical cooperation under ITEC, BIMSTEC and Colombo Plan the Government of India provides 150 slots each year for pursuing professional short & medium courses in India.

India also accounts for the largest number of tourist arrivals in Sri Lanka and with 90 weekly flights to India operating to 10 destinations, Sri Lankan Airlines is the largest foreign airline operating in India.
I am happy to announce that our two Governments are commencing implementation of the MoU on Small Development Projects, which is specially aimed at sharing our development expertise with rural communities. I am also happy to see the progress in agriculture cooperation, especially through the Model Farms being set up with Indian expertise to train rural youth in modern and sustainable agriculture. In the next months we will be setting up 20 IT centers around Sri Lanka, including in the North and the East, in collaboration with the Government of Sri Lanka. We hope that this would be the first step in long term collaboration in the IT field where India has proven strengths.
The Government of India is extending assistance to the Sri Lankan Government to implement a comprehensive project for upgrading the Colombo-Galle-Matara coastal railway line. The assistance was announced during the State Visit of His Excellency President Mahinda Rajapaksa to India in December 2005. The project covers upgrading the tracks, bridges, signaling and induction of new passenger trains. When completed, the revamped coastal railway line system will substantially improve the rail services on the Colombo - Galle - Matara section and result in higher average speeds and increased number on train services.
A multi-disciplinary team of railway experts from RITES and IRCON, the overseas arms of the Indian Ministry of Railways for undertaking railway projects have completed work relating to the preparation of a feasibility study for the project. During their visit, the team called on high officials of the Sri Lankan Government. The Indian team made extensive site visits on the Colombo-Matara line with their counterparts of Sri Lanka Railways to draw up a detailed project implementation strategy for undertaking the coastal line upgrade and rehabilitation. The Indian Ministry of Railways had assured full support for the project including Human Resource Development and Technology Transfer to Sri Lanka Railways. The Colombo - Galle - Matara project is likely to be completed in two years.
The Indian Cultural Centre continued to foster a greater understanding among young Sri Lankans of the shared cultural and musical heritage of our two countries. A show, Nav Pratibha, was organised in March 2006 showcasing the talents of the students of the ICC in various dance and music forms. Earlier in the year, the Ministry of Cultural Affairs and National Heritage, Government of Sri Lanka and the High Commission of India jointly organised an Indian Handicrafts Exhibition in Colombo called Creative Hands India. The exhibition showcased the skills of Indian craft persons and the wealth of handicrafts from different states of India. Selected crafts of Jammu and Kashmir, Chattisgarh, Gujarat, Uttar Pradesh and other States of India were on sale. A highlight of this exhibition was the live demonstration by Indian craftpersons of leather embroidery from Bhuj, Gujarat, the famous chikan embroidery from Uttar Pradesh, wood carving from Rajasthan, papier mache from Jammu and Kashmir and cane and bamboo work from Assam. Large consignments of handicrafts were on sale. The exhibition was sponsored by the Office of the Development Commissioner of Handicrafts in India.

In February 2006, a 14 member Sri Lankan dance troupe participated at a very famous craft fair held outside New Delhi called the Suraj Kund Craft Mela. The dancers displayed their skills and brought Sri Lankan culture to the vast number of Indians who regularly throng the fair.

The High Commission of India gifted 83 rare photographs of Buddhist historical and art heritage from India to the Aluvihara temple in Matale. These photographs have been displayed in the premises of the temple.

The Government of India awarded scholarships for 60 Sri Lankan students to degree courses at prestigious Indian universities. These scholarships are funded by the Indian Council for Cultural Relations (ICCR). They provide to the scholar a complete waiver of all tuition fees, a generous monthly stipend for living expenses and the international airfare between India and Sri Lanka.

These courses are in a variety of subjects - degree courses in engineering, humanities, pure and applied sciences, technology, commerce and accountancy and others. There are also diplomas and degree courses offered in music, dance and fine arts. A few post-graduate courses with scholarships are also provided every year to deserving young students of Sri Lanka. Around 3,000 students have obtained degrees under the ICCR scholarship scheme over the past five decades. Sri Lanka has been one of the largest beneficiaries of the ICCR scholarship scheme. The grant of this large number of scholarships by the Government of India (GOI) is a symbol of the importance that GOI attaches to its relationship with Sri Lanka and the Sri Lankan people.

This year's recipients include students from all parts of the country including Colombo, Galle, Gampaha, Batticaloa, Kandy, Nuwara Eliya, Hambantota, Polonaruwa, Jaffna and Trincomalee who will study at Indian universities in Delhi, Bangalore, Chennai, Pune, Hyderabad, Lucknow, Osmania and Benaras Hindu University.

The people to people contacts between our two countries is growing and is set to grow further in the time to come. The newly-introduced Overseas Citizenship of India allows people of Indian origin all over the world to obtain various rights vis-à-vis access to and privileges within India. Overseas Citizens of India have permanent visa to enter India and have educational and property-owing rights within India. I am happy to note that many Sri Lankans of Indian origin have obtained this privilege and have thereby introduced another link to the many links already existing between our two ancient lands.

I am glad that the Wesak/Buddha Jayanthi celebrations at Sarnath in the year of the 2550th anniversary of the birth of Lord Buddha were telecast live in Sri Lanka. This was an invaluable opportunity provided to the people of Sri Lanka to witness the historic occasion direct from the hallowed place where the Master preached his very first sermon. I hope that this year concludes in peace and harmony for all the countries in our region under the protective canopy of this blessed anniversary.

The India-Sri Lanka relationship is a model for the region. Our constant attempt is to look for mutually- beneficial partnerships in diverse fields of activity, build even greater understanding and explore ways to bring our peoples even closer together. We have a shared destiny. That awareness should be the lodestar in our quest for an even deeper and stronger friendship. Let me conclude with the words of Jawaharlal Nehru when he spoke at a public reception in Colombo in January 1950: "... it seems to be quite inevitable and right that there should be the closest relationship and cooperation between India and Sri Lanka. Geography compels it. Our history and common culture make it inevitable..." Let that spirit of kinship continue to guide us in our journey forward with peace, boundless goodwill, friendship and mutual understanding as our constant companions and let us work for a closer partnership between our two countries in the cause of peace, democracy and development.