Prime Minister Narendra Modi received a ceremonial guard of honour in Sri Lanka on Saturday as he kicked off his first visit to the island nation in his third term. Both countries have signed seven Memorandum of Understandings (MoUs) in defence, energy, digital infrastructure, health and trade sectors amid concerns over China's expanding its influence across the Indian Ocean region.
This is PM Modi's first visit since Sri Lankan President Anura Kumara Dissanayake took charge last year - and the first by any foreign leader since Dissanayake began his term in 2024. It also comes after Dissanayake's visit to India in December - his first state visit since assuming office.
During this visit, PM Modi carried forward India's initiative to help Sri Lanka rebuild after the 2022 economic crisis battered the island nation. After providing USD 4 million to bail Sri Lanka out of the crisis, India has expressed its willingness to continue to help the island nation with debt restructuring and lowering the interest rates on loans.
"In the last 6 months, we have converted loans of over 100 million into grants. Our bilateral debt restructuring agreement will be of immediate help to the people of Sri Lanka. Today, we have also decided to lower the interest rates. It shows that even today, India stands with the people of Sri Lanka. For the development of Eastern states, approximately 2.4 billion Lankan Rupees will be provided," said PM Modi.
PM Modi's visit comes at a time when Tamil Nadu has passed a resolution to retrieve Katchatheevu from Sri Lanka - an emotive issue for fishermen in the state due to the long-standing dispute over fishing rights around the 285-acre island.
