India-International Affairs Current Affairs

Enter your Email address to receive updates in your inbox

India signs Agreement to provide $318 million Line of Credit to Sri Lanka

India has signed an agreement with Sri Lanka to provide USD 318 million as line of credit for developing Sri Lanka’s railway sector. The agreement was signed between Sri Lanka’s Ministry of Finance and Mass media, and Managing Director of India’s Export Import Bank in Colombo.

Background

In 2015, during the visit of Prime Minister Narendra Modi to Sri Lanka he had declared a line of credit of USD 318 million for the development of Sri Lanka’s railway sector. That visit of Prime Minister Modi was the first standalone bilateral visit by an Indian prime minister since 1987.

The line of credit comes at the backdrop of increasing Chinese presence in the Indian Ocean nation. China has made significant investments in Sri Lanka mainly in developing ports. Though China claims the investments are part of its Belt and Road Initiative that aims to link it with Europe and Africa via the Indian Ocean, the ports have the potential to be used as a base for its naval operations.

At present, Indian development assistance to Sri Lanka primarily focuses on improvement of infrastructure, livelihood development, education, healthcare, and capacity building. India continues to be a major developmental partner for Sri Lanka for nearly 40 years.

So far India has provided four lines of credit to Sri Lanka for developing its railway sector that totally amounted to USD 966 million. Sri Lanka has made used of these credit facilities to improve the southern and northern railway lines as well as for procuring the rolling stocks for the Sri Lanka Railways.

In addition, over the years Indian foreign direct investment in Sri Lanka has also increased rapidly.

 

 

 

Tags:

India, Thailand ink MoU on Double Taxation Avoidance Treaty

India and Thailand signed a Memorandum of Understanding (MoU) on double taxation avoidance treaty (DTAT).

The MoU was signed during 7th meeting of the India-Thailand Joint Commission for Bilateral Cooperation co-chaired by External Affairs Minister Sushma Swaraj.

Apart from DTAT, both nations signed and exchanged instruments of ratification on the extradition treaty inked in 2013. This treaty provides for the legal framework for extradition of fugitive offenders.

Both nations also signed a MoU on the establishment of Nalanda University in Bihar, India. By signing this agreement, Thailand joins other East Asian Summit countries in the establishment of and revival of an ancient center of learning at Nalanda.

It should be noted that India-Thailand Joint Commission for Bilateral Cooperation meeting took place after a gap of three years due to the changes in government in Thailand.

Tags:

Advertisement

123