Four-point package for economic cooperation between India and Sri Lanka finalised

India and Sri Lanka have framed a four point Packham which includes a line of credit covering the food and medicines import and an arrangement for currency swap which will help in strengthening the economic cooperation and coping with the economic problems.

The two sides discussed about four pillars of short and medium term cooperation. The package also has an offer of a currency swap which will help Sri Lanka in addressing the current issues of balance of payment and will also facilitate Indian investments in different sectors in Sri Lanka to contribute towards growth and expansion of employment.

Both sides have also agreed to open direct lines of communication and be in direct and regular contact with each other in order to coordinate this initiative.

The currency swap offered to Sri Lanka is expected to be made under the SAARC facility and would be worth $400 mn.

Rajapaksa also had bilateral discussions with Jaishankar which focused on a range of issues of mutual importance with specific attention on economic cooperation. Rajpaksa during these discussions briefed the Indian side on the economic situation in Sri Lanka and the approaches his government has adopted to address the post COVID-19 challenges.

The Indian Minsters reiterated that India has always stood by Sri Lanka and in the current situation would guide itself as per the “Neighbourhood First” policy.