External Affairs Minister S Jaishankar on Tuesday announced that India has proposed a comprehensive aid package of US$450 million to aid Sri Lanka’s reconstruction efforts following Cyclone Ditvaah.
The announcement follows the successful completion of the immediate humanitarian assistance phase under Operation Sagar Bandhu, India’s rapid response to the crisis.
Speaking in Colombo as the Special Envoy of Prime Minister Narendra Modi, Jaishankar stressed India’s commitment to its neighboring country during this uniquely challenging period, saying, “The letter from Prime Minister Modi that I have handed over reinforces our primary assistance role and commits us to a US$450 million reconstruction package for Sri Lanka.”
Jaishankar detailed the scale of the initial relief efforts, saying that “about 1100 tonnes of relief material was delivered” and “about 14.5 tonnes of medicines and medical equipment were also made available” under the operation.
Highlighting continued connectivity between New Delhi and Colombo, Jaishankar said Prime Minister Modi has directed officials to work closely with the Sri Lankan government on reconstruction priorities.
Jaishankar said, “Recognizing the urgency of reconstruction, Prime Minister Modi has directed that we now work with the Government of Sri Lanka to fulfill this priority.”
Outlining the proposed assistance package, he said, “The assistance package that we have proposed is worth US$ 450 million. It will include a concessional loan amount of US$ 350 million and a grant of US$ 100 million.” Jaishankar said this.
This US$450 million package is currently being finalized “through close consultation with the Government of Sri Lanka” to ensure that funds are directed towards the most critical infrastructure and reconstruction needs.
This latest move reaffirms India’s “Neighbourhood First” policy, positioning New Delhi as a first responder and a stable partner in the path to stability in Sri Lanka.
Apart from immediate relief and reconstruction, Jaishankar stressed India’s intention to support Sri Lanka’s economic recovery through continued cooperation. “I want to assure you that we will continue to encourage tourism from India in this regard,” he said, and described tourism as a major driver of Sri Lanka’s economy.
He also highlighted the role of Indian investment and said, “An increase in foreign direct investment from India can boost your economy at a critical time.”
Acknowledging the challenges facing Sri Lanka, Jaishankar said that the country was recovering from previous difficulties, but has once again come under pressure. He said, “We fully recognize that this is a challenging period for Sri Lanka. This natural disaster has created new difficulties even after we recover from the economic crisis of 2022.”
Jaishankar arrived in Colombo on Monday evening and was welcomed by Deputy Tourism Minister Ruwan Ranasinghe.