Doing Business in Sri Lanka - High Commission of India, Colombo

Doing Business in Sri Lanka
lines in Northern Sri Lanka was signed to do the track laying work between the Omanthai-Pallai , Madhu
-Tallaimannar and Medawachchiya- Madhu sectors.
Another line of credit Agreement of US dollars 382.37 million for the restoration of Northern Railway Services
was signed by Mr. T.C.A. Ranganathan, Chairman and Managing Director, EXIM Bank of India and Dr.
P.B. Jayasundera, Secretary, Ministry of Finance and Planning, Government of Sri Lanka on 17th January
2012. The Line of Credit will be used for track laying on the Pallai- Kankesanthurai railway line, setting up
of signaling and telecommunications systems for the Northern railway line and other projects as may be
mutually agreed by the Governments of India and Sri Lanka.
Buyer’s Credit Agreement
Buyer’s Credit Agreement for US dollars 60.69 million was signed on 17th January 2012 by Mr. T.C.A.
Ranganathan, Chairman and Managing Director, EXIM Bank of India and Dr. P.B. Jayasundera, Secretary,
Ministry of Finance and Planning, Government of Sri Lanka for financing Greater Dambulla Water Supply
Project for supply, erection and commissioning of water treatment plant and distribution across Dambulla
region in Sri Lanka.
Develpoment Cooperation
India has an extensive Development Cooperation relationship with Sri Lanka, which is based on the
foundations of political understanding, a historic past, geographic realities and socio-cultural empathy. It is
also inspired by our experience of South-South cooperation and the sharing of our expertise and resources
in capacity building and human resource development, as well as infrastructure development. The model
adopted for development cooperation is consultative and responsive and based on partnership with Sri
Lanka.
With the end of armed conflict in Sri Lanka in May 2009, there has been a manifold increase in the extent
of development cooperation between India and Sri Lanka. The Government of India has adopted various
instruments to execute development projects in Sri Lanka, which include both grant and credit funded
projects. The initial phase of this assistance focused on relief and rehabilitation of IDPs and subsequently
moved on to reconstruction and development.
Major Grant-Funded Projects Implemented in Recent Years
● ● Indian Housing Project: India has committed to construct 50,000 houses for IDPs of Northern, Eastern
and Central Provinces. The Pilot Project involving construction of 1,000 houses at a cost of INR 52
crore is nearing completion. We are embarking on the next phase
for construction of 43,000 houses under owner driven model and
construction of 6,000 houses under agency driven model at a total cost
of INR 1,319 crore.
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An MoU specifying the modalities for the next phase of the Housing
Project (construction of 49,000 houses) being implemented with
India’s assistance of approximately US Dollars 260 million was signed
by Honble S.M. Krishna, Ex-ternal Affairs Minister of India and Hon.
Prof. G.L. Peiris, External Affairs Minister of Sri Lanka on 17th January
2012.
● ● Scholarships: India offers scholarships worth INR 100 crore for Sri
Lankan students to pursue higher studies in India.
● ● Supply of Computers to Schools in Eastern Province: Grant of 1260
computers, printers and other peripherals to 580 schools in Eastern
Province. The project was implemented at a cost of INR 64.9 million