The Hon. Vijitha Herath - Minister of Foreign Affairs, Foreign Employment and Tourism

¶ 01 Hon. Deputy Speaker, in December last year, responding to an invitation by the Indian Prime Minister, the Hon. President, I, and our Ministers visited India. On that occasion, our President formally invited the Indian Prime Minister to visit Sri Lanka. He gladly accepted and accordingly, on 8 April he visited Sri Lanka, accompanied by the External Affairs Minister Dr. S. Jaishankar, National Security Advisor Ajit Doval, Foreign Secretary Vikram Misri and the Indian delegation. During the visit, discussions were held at the state-to-state diplomatic level. In addition, there was positive intervention and support extended towards a number of special projects across various sectors between the two countries: tourism, digitalization, political relations, energy, agriculture and industry, investment in Sri Lanka, and transport, among others.

¶ 02 Through this visit, significant benefits have been delivered to the people of Sri Lanka. Chief among them, Hon. Deputy Speaker, relates to our bilateral debt with India. We had requested a debt restructuring programme. I am happy to inform this House and the people that the Government of India agreed, and a bilateral agreement has been signed for the restructuring of the bilateral debt. Moreover, of the loans obtained, approximately USD 100 million taken within the last 60 months has effectively been converted into grants. This is a major benefit to our people: on one hand debt restructuring; on the other, converting previously extended loans into grants.

¶ 03 Hon. Deputy Speaker, during the recent economic crisis, under the swap facility we obtained credit from India. We proposed reducing the interest rate of that swap loan and extending the OD timeline. Last October it was extended by six months. We have again requested further extension. The Indian Prime Minister made a clear public commitment to reduce the interest rate on the swap facility and extend the tenure, providing much-needed relief to our people in economic hardship.

¶ 04 Furthermore, a grant of LKR 600 million has been provided for the Accident and Emergency Unit at the Mannar Hospital, enabling construction and procurement of medical equipment—an important service particularly to the people of the Mannar District.

¶ 05 India had previously provided credit for the construction of the Maho–Omanthai railway line and the related signalling systems. For the Maho–Anuradhapura section signalling upgrade, about USD 14.9 million (around LKR 4.5 billion) initially extended as a loan has now been converted fully into a grant concurrent with the visit. Hence, this is no longer a loan and need not be repaid; the signalling from Maho to Anuradhapura will proceed under Indian grant assistance.

¶ 06 We also proposed several projects relating to the historic sacred city of Anuradhapura. The Indian Prime Minister, in the presence of the Mahanayake Theros including the Atamasthanadhipathi, pledged that the Government of India would support and provide financial assistance for these. Thus, funds will be available to further develop the historic sacred city of Anuradhapura while preserving its religious sanctity.

¶ 07 In Trincomalee, agreement was reached to provide financial support for a dedicated project to renovate the Thirukoneswaram Kovil, a significant boon to devotees to carry out their religious activities.

¶ 08 Further, to strengthen the age-old civilizational and religious ties and to boost tourism, agreement was reached to upgrade and expand the sacred Seetha Eliya temple area in Nuwara Eliya, with dedicated funding. This will improve the Hindu temple complex and significantly benefit tourism. Our Hon. Member Radhakrishnan, who chairs the Seetha Eliya historic temple, has expressed his concurrence. Steps are underway in coordination with him; the Nuwara Eliya District Coordinating Committee is already discussing adding certain Forest Department lands to expand the temple precinct.

¶ 09 We opened the long-pending cold-storage facility for fruits and vegetables in the Dambulla area, an Indian-assisted project that will serve farmers in the Central and North Central Provinces.

¶ 10 We laid the foundation stone for the Sampur solar power project of 120 MW capacity, to be implemented through a joint venture with the Ceylon Electricity Board and an Indian company, adding vital capacity to our grid.

¶ 11 India has commenced providing solar panels to religious sites in Sri Lanka. Already, 5,000 Buddhist temples have received solar panels, and the Indian Prime Minister inaugurated the continuation of this programme. We have identified 6,280 temples that consume less than 200 units of electricity per month to be provided free electricity, with India agreeing in principle. Land for this project has been identified in Dambulla. This will benefit not only the Buddhist community but also Hindu, Catholic and Islamic places of worship.

¶ 12 A long-standing issue faced by the Maha Bodhi Society in India—its inability to legally hold and utilize foreign currency offerings from devotees—has been resolved. Upon our request during the Indian External Affairs Minister’s earlier visit, India has amended the necessary rules to allow the Maha Bodhi Society to legally receive and utilize such funds.

¶ 13 We have also finalized a Social Security Agreement between India and Sri Lanka. Sri Lankans who work in India and return home have had difficulties claiming social security contributions due to the absence of an agreement. This MoU, now at its final stage pending some technical clarifications, will ensure fair accrual and portability of social security benefits for Sri Lankans who have worked in India and for future workers as well.

¶ 14 Additionally, training in India, free of charge, has been agreed for approximately 1,500 Sri Lankan public servants, and for a further 700 officers across various services including MPs.

¶ 15 For the development of the Eastern Province, India agreed via an MoU to provide about LKR 24 billion for 33 projects in agriculture, education, fisheries, health, etc. Further, India has earmarked LKR 548.3 billion for Sri Lanka for 2025–2026, which is a significant support in our current economic difficulty.

¶ 16 Under the Indian Credit Line, projects amounting to USD 318 million are underway, with agreement to restructure components relating to water, highways and construction.

¶ 17 On the 10,000 housing programme in the plantation sector, many houses have been completed, and works on a further 4,700 are ongoing, with the Indian Prime Minister pledging further assistance—an immense relief to estate communities.

¶ 18 Regarding the recent US reciprocal tariff and its impact on our exports, we discussed this with India as well. Under the current Free Trade Agreement, we have almost fully utilized an 8 million-piece quota. We requested that India increase this quota to 50 million pieces, given that the agreement is 25 years old and markets have expanded, or alternatively to facilitate USD 500 million worth of exports. Many such substantial benefits have flowed to our people through the visit of Indian Prime Minister Narendra Modi. It is our responsibility to leverage these to uplift our people economically and socially.

¶ 19 Hon. Deputy Speaker, I emphasize that during the visit we signed seven MoUs between the two Governments. These were concluded after extensive discussions over years between officials of the relevant ministries of both countries, and all seven were referred to and cleared by the Attorney-General of Sri Lanka. These MoUs are not illegal documents; they are understandings to build trust and cooperation, not treaties imposing binding legal obligations. Either party can withdraw with three months’ notice. They are signed for specified durations—several years.

¶ 20 Regarding process, these MoUs were presented to the Cabinet, obtained full Cabinet approval, cleared by the Attorney-General, and referred to the relevant line ministries for their concurrence before signature. None was signed without Cabinet consideration.

¶ 21 Among the MoUs, two relate to energy. The first is for HVDC grid connectivity between Mannar in Sri Lanka and Madurai in India, enabling both import and export of electricity. If, in future, we have surplus generation, we can export to India and the BIMSTEC region; if we face shortages, we can import. Technical committees will finalize design, cost allocation, quality and the onshore/offshore configurations; works in Indian territory will be done by India, and in Sri Lankan territory by Sri Lanka. This does not impose any compulsion to import from India; imports or exports will be at our discretion. Our energy sovereignty is safeguarded; there is no risk of “switching off” from India causing blackouts here.

¶ 22 The second energy MoU designates Trincomalee as an energy hub through a tripartite understanding among India, the United Arab Emirates and Sri Lanka, facilitating import, storage and distribution of oil and gas, with the potential for bunkering services, refurbishment of about 85 aging oil tanks, and exploring the establishment of a refinery. Modalities for import routes (pipeline, sea-borne, etc.) remain to be decided through further discussions.

¶ 23 In health, two MoUs were signed: one between the Ministries of Health of India and Sri Lanka for cooperation in training, research, exchanges and knowledge-sharing; and another between the Indian Pharmacopoeia Commission and Sri Lanka’s NMRA to recognize the Indian Pharmacopoeia. As Sri Lanka imports about 80 per cent of its pharmaceuticals from India, this will facilitate access to quality-assured medicines at lower prices, complementing our existing recognition of the US, British and Japanese pharmacopoeias. This does not compel procurement from India nor impose quotas; it is about standards and safety.

¶ 24 An MoU on digitalization was signed between Sri Lanka’s Digital Ministry and the Government of India to cooperate in digital technologies and e-governance, with technical modalities to follow.

¶ 25 An MoU was signed for development projects in the Eastern Province (approximately LKR 24 billion), by the Secretary to the Ministry of Finance and the Indian High Commissioner.

¶ 26 An MoU on defence cooperation was signed between the Democratic Socialist Republic of Sri Lanka and the Republic of India. This is not a defence pact but a framework for cooperation consistent with international law, national laws and policies, including respect for sovereignty, equality of states, territorial integrity, and non-interference. It covers exchanges, training, staff talks, information sharing, intellectual property, defence industry and technical research. It reaffirms that neither party will allow its territory to be used for activities harmful to the national security of the other. We uphold this principle consistently—including with China—by not permitting our territory to threaten any country’s security. The MoU was vetted by the Attorney-General and relevant defence institutions and approved by Cabinet. It poses no threat to our national security nor binds us compulsorily.

¶ 27 Separately, Indian-assisted debt restructuring has reduced the burden on projects like the Polgahawela–Pothuhera–Alawwa Integrated Water Supply, Aluthgama–Matugama–Agalawatta Integrated Water Supply, Greater Dambulla Integrated Water Supply, and two modern offshore patrol vessels—lessening our repayment burden. Railway upgrades including Colombo–Matara second phase works, Omanthai–Pallai–Mannar–Medawachchiya sections, restoration of Northern Line services, Kankesanthurai Port rehabilitation, and Maho–Omanthai works have had loans restructured to reduce public burden.

¶ 28 In sum, the Indian Prime Minister’s visit delivered numerous gains, strengthening political, social and cultural ties. These MoUs are not secret; any citizen may obtain them under the Right to Information Act. They are not the final legally binding stage; further steps are required for implementation. As a government of the National People’s Power, which fought to protect the sovereignty and territorial integrity of our country, we assure the people that we will never barter away our independence. We have entered into these bilateral MoUs safeguarding our sovereignty, to deliver benefits to our people.

¶ 29 Thank you.