Pacts signed by India and Srilanka during PM's visit

Pacts signed by India and Srilanka during PM's visit

Question - Shared commitment to cooperation is the way forward for strengthening bilateral relations between nations. Discuss the pacts signed by India and Sri Lanka during PM Narendra Modi’s first visit to the island nation.

India and Sri Lanka have signed 4 bilateral pacts during the first tour of the Indian PM to this Indian Ocean island nation namely:

- Agreement on visa
- Agreement on customs: cooperation between customs authorities is a step in this direction for simplifying trade and reduction of non tariff barriers for both the nations
- Pact for youth development
- Construction of Rabindranath Tagore memorial

• PM Narendra Modi’s visit is the first bilateral tour by an Indian PM since 1987

• Regarding the fishermen’s issues, India and Sri Lanka need to consider livelihood as well as humanitarian dimensions, according to the Indian side

• Progress by the nations reflects shared commitment to strengthened economic cooperation

• India will also assist Trincomalee to become a petrol hub

• New Delhi will offer a new Line of Credit of close to USD 318 million for Sri Lanka’s railway sector. This will ensure procurement of rolling stock and assist in restoring and upgradation of the existing rail track.

• Reserve Bank of India and the Central Bank of Sri Lanka have also formed a Currency Swap Agreement for ensuring the stability of the Sri Lankan rupee; it amounts to USD 1.5 billion

• Shared vision for a future that accommodates aspirations of all including Sri Lankan Tamil stressed

• Early and complete implementation of the 13th Amendment was also stressed by the Indian PM

• Indian Oil Corp has arrived at a joint development pact with Ceylon Petroleum Corporation tot develop the Upper Tank Farm of Trincomalee’s China Bay Installation as a regional petrol hub

• Agreement alongside task force for its implementation were announced

• Early commencement of work on the Sampur Coal Power Project was also reiterated; major project to meet Sri Lankan energy needs

• Joint Task Force on Ocean Economy is another step forward for Indo-Lankan relations

Facts and Stats

About Lanka IOC

• Lanka IOC is Indian Oil’s subsidiary in Sri Lanka which is a private oil firm other than state owned Ceylon Petroleum Corporation/CPC that is responsible for retail petrol and diesel stations in Sri Lanka

• Around 150 petrol and diesel stations in Sri Lanka are maintained by Lanka IOC; its major facilities include oil terminal at Trincomalee

• Trincomalee is the biggest petroleum storage facilit; there is an 18,000 tonnes per annum capacity lubricants blending plant and state-of-the-art fuels and lubricants testing lab at Trincomalee

• It holds a market share of 43.5 per cent currently