India, Sri Lanka to fast-track USD 450 million reconstruction package

India and Sri Lanka agreed to speed up implementation of a USD 450 million reconstruction package for cyclone-hit Sri Lanka. The assistance, announced after Cyclone Ditwah, includes concessional credit, grants and support for infrastructure, healthcare and recovery projects

Colombo: India and Sri Lanka on Sunday agreed to expedite implementation of the post-Ditwah reconstruction package of USD 450 million that New Delhi offered after one of the worst natural disasters hit the island nation. The issue was discussed when Indian High Commissioner in Colombo Santosh Jha met Sri Lanka’s Labour Minister and Deputy Minister of Finance & Planning Anil Jayantha Fernando here.

“Agreed to expedite implementation of the post-Ditwah reconstruction package of USD 450 million,” Jha said in a post on X. On November 27 last year, Sri Lanka was hit by Cyclone Ditwah that affected over 3 million people, caused widespread flooding and landslides, and resulted in over 640 deaths.

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India, as the first responder, launched ‘Operation Sagar Bandhu’ on November 28 to provide relief, recovery assistance and restore connectivity in Sri Lanka. That was in addition to the medicine and field hospitals that India set up in the island nation.

On December 23, India announced a reconstruction package of USD 450 million for Sri Lanka, as External Affairs Minister S Jaishankar met with the island nation’s top leaders and assured Delhi’s steadfast commitment to Colombo’s rebuilding post-cyclone. The assistance package included USD 350 million in concessional Lines of Credit and USD 100 million of grants.

Jha further added that he discussed other bilateral projects by reviewing their progress. “Briefed him on the progress on various bilateral projects.” Indian projects currently in Sri Lanka cover housing, health, water, infrastructure and technology in addition to the cultural sector. The two sides also discussed and exchanged ideas on potential collaboration in domains of modern financial frameworks and cyber security, Jha added.