Annual Report 2011 - 2012

India is also involved in projects for the renovation of the
Kankesanthurai Harbour, construction of a Cultural Centre
in Jaffna, interconnection of electricity grids between the
two countries, construction of a 150-bed hospital in Dickoya
and setting up a coal power plant in Sampur as a joint
venture between the National Thermal Power Corporation
(NTPC) and the Ceylon Electricity Board (CEB). Work on
wreckage removal for rehabilitation of the Kankesanthurai
Harbour was completed in January 2012.
India continues to assist a large number of smaller
development projects in areas like education, health,
transport connectivity, small and medium enterprise
development and training in many parts of the country
through its grant funding. In this context, projects for
providing fishing equipment to cooperatives in the East,
supply of equipment to Jaffna Teaching Hospital, renovation
of Duraippah Stadium, reactivation of Achuvely Industrial
Zone, assistance in repair of schools in Northern Province,
supply of fishing equipment to old IDPs in Mannar district
and supply of equipment to Kilinochchi and Mulaittivu
General Hospitals have already been completed or are in
various stages of implementation.
Bilateral economic and commercial ties continued to expand
during the year. India is now Sri Lanka's largest trading
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India's Neighbours
partner in South Asia. Last year, India emerged as the largest
source country as far as Foreign Direct Investment and tourist
arrivals were concerned. Bilateral trade in the first 11 months
(January-November 2011) amounting to US$ 4.46 billion,
up 71.94 per cent increase over the corresponding period of
the previous year.
Sri Lanka has long been a priority destination for direct
investments and India is today among the four largest
investors in Sri Lanka, with cumulative investments over US$
600 million.
A Memorandum of Understanding (MoU) was signed on 7
January, 2011, between India and Sri Lanka on Passenger
Transportation by Sea. The MoU envisages putting in place
ferry services to Tuticorin, Talaimannar and Rameswaram
from Colombo. Resumption of these services signals an
important step in the restoration of the traditional links
between the two countries. The ferry service between
Colombo and Tuticorin resumed operations on 13 June,
2011.
Bilateral cooperation in the field of education was enhanced
with the announcement of a nearly three-fold increase in
scholarship support to Sri Lankan students during the visit
of the Minister of External Affairs, Mr S M Krishna, in
January 2012. The expanded scholarship programme will
also provide opportunities for higher research.