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Delhi, Colombo should build on Trincomalee deal with broader strategy’: Lankan envoy

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Lankan High Commissioner in India Milinda Moragoda said the two countries should move on from the transactional phase and look at the bigger picture, including integrating Sri Lanka into India’s overall energy security policy India and Sri Lanka should forge a larger strategic framework that builds on the Indian presence in key projects such as the Trincomalee oil tank farm and Colombo port and benefits both countries, Sri Lankan high commissioner Milinda Moragoda has said, according to a report in The Hindustan Times.

Moragoda sought to play down Chinese foreign minister Wang Yi’s recent remarks that no “third party” should interfere in China-Sri Lanka ties by citing the comments of Prime Minister Mahinda Rajapaksa, who said that China is a very close friend of Sri Lanka while India “is our brother and sister”.

Sri Lanka inked a deal with a subsidiary of Indian Oil Corporation (IOC) last week for the long-gestating project to refurbish and develop the British-era Trincomalee oil farm, an 850-acre storage facility with a capacity of almost one million tonnes.

The Hindustan Times report said: State-owned Sri Lanka Ports Authority and Adani Group finalised a deal last year to develop the west container terminal at Colombo port. Dredging work at the terminal is expected to start later this month.

In an “integrated country strategy” document that Moragoda prepared before assuming office in India last year, he suggested that the two sides should evolve from a transactional stage to a strategic, and then a special relationship. He said in an interview on Thursday the time has come for both sides to move on from the transactional phase and look at the bigger picture, including integrating Sri Lanka into India’s overall energy security policy.

“The west terminal [at Colombo port] and the tank farm are two very important transactions, As I see it, the two sides should move seamlessly into the strategic area,” he said, adding he perceived the Trincomalee deal as “integrating Sri Lanka with India in the petroleum, oil and gas sector”.

The two sides should jointly develop a business plan for the Trincomalee tank farm that accounts for projections that India’s energy needs will grow by 50% by 2030 and the need for refining capacity will go up 30%. The two sides can look into joint oil and gas exploration in the Cauvery basin and developing a refining facility at Trincomalee, Moragoda said.

“For us, Trincomalee could potentially be a petroleum hub for India, both for storage and refining. Trincomalee can only service India, it is too far away from sea lanes…We need to think strategically and that’s going to be the next step. Looking at this narrowly as a tank farm transaction would be wrong,” he said.

Oil storage and refining facilities at Trincomalee will also boost Sri Lanka’s energy security. “As India is the world’s third-largest energy consumer, it can get much better deals for petroleum than Sri Lanka. We can work with India on our requirements and it will give us energy security,” he said.

Asked about Chinese foreign minister Wang’s remarks, during a recent visit to Colombo, that no “third party” should interfere in China-Sri Lanka relations, Moragoda said: ” Prime Minister Mahinda Rajapaksa always has a very pithy way of putting things and when he was asked about this, he always said China is a very close friend, but India is our brother and sister.”

He added, “So it’s a different relationship. For us to interpret that comment doesn’t make sense, given the relationship with India.”

Wang’s remarks were widely perceived in New Delhi as a reference to India, especially against the backdrop of India’s opposition to projects under the Belt and Road Initiative in the neighbourhood.

Cooperation on the Trincomalee tank farm, held up since 1987, has been followed by Indian assistance for Sri Lanka to overcome a severe economic crisis, including depleting foreign currency reserves that experts believe can lead to a default on external debt. Following a meeting with Indian envoy Gopal Baglay in Colombo on Thursday, Sri Lanka’s Central Bank governor Ajith Nivard Cabraal tweeted India will provide a SAARC currency swap and other forms of cooperation.

The SAARC currency swap will be for $400 million and India has deferred $500 million due to the Asian Clearing Union for two months. Moragoda said more developments are expected in this regard in the coming weeks.

Sri Lanka expects to get a revolving credit line of $500 million from India’s Exim Bank for buying petrol and diesel and another package for emergency purchases of food and medicines. Steps are being taken to operationalise a line of credit offered by India for counter-terrorism efforts and a grant for a naval floating dock, Moragoda said.

“Sri Lanka is the largest recipient of Indian defence scholarships, and at any time 600 to 700 of our personnel are training in India. We want to increase this and expand it to the police,” he said.

“We’re planning to use the Aadhar card as a template for Sri Lanka’s ID card. Our president is very, very enthusiastic about it. He’s also the minister in-charge of the science and technology sector. Those discussions are ongoing,” he added.



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Tobacco and alcohol claim 22,000 lives annually

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Health and Mass Media Secretary Dr Anil Jasinghe speaking to NPP MP Samanmali Gunasinghe during the sectoral oversight committee meeting

NATA to be given more powers

The Parliamentary Sectoral Oversight Committee on Health, Mass Media and Women’s Empowerment has agreed in principle to ban single-stick sales of cigarettes and increase taxes on tobacco products, according to parliamentary sources.

The decision was reached during an institutional review of the National Authority on Tobacco and Alcohol (NATA) held recently in Parliament. The meeting was chaired by MP Dr. Nihal Abeysinghe.

During the review, NATA officials informed the committee that approximately 22,000 deaths occurred annually in Sri Lanka due to tobacco and alcohol consumption. They said the country suffered an economic loss of between Rs. 225 billion and Rs. 240 billion each year due to the consumption of tobacco products and alcohol.

Officials told the committee that steps were underway to amend the National Authority on Tobacco and Alcohol Act to grant it more powers.

Noting that 104 countries had already banned the sale of loose cigarettes, the underscored the need for Sri Lanka to adopt a similar policy. When loose cigarettes were sold, mandatory health warnings on cigarette packets were not visible to consumers, the NATA officials said.

The committee was also briefed on the importance of imposing taxes on cigarettes after determining their retail prices, as part of broader measures aimed at reducing tobacco consumption.

Commenting on the matter, Dr. Abeysinghe said the committee was prepared to extend its full support for the proposed amendments to the Act, as well as for other programmes and initiatives undertaken by the National Authority on Tobacco and Alcohol.

Deputy Chair of the Committees Hemali Weerasekara, committee members MPs Dayasiri Jayasekara, Muneer Mulaffer, Samanmali Gunasinghe, Prof Sena Nanayakkara, Dr S. Sri Bhavanandarajah, Dr Ramanathan Archchuna and with the permission of the Chair, MPs Dr. Janaka Senarathna and Dr Pathmanathan Sathiyalingam were present at the committee meeting.

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Development Officers hunger strike drags on for fourth day

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Development officers on hunger strike demanding absorption into the teacher service, outside the Presidential Secretariat at Colombo.

The hunger strike launched by a group of Development Officers demanding their absorption into the teacher service entered its fourth day yesterday (29) outside the Presidential Secretariat Colombo.The protesters, members of the Ceylon School Development Officers’ Union (CSDOU), began their satyagraha on January 26.

One of the four officers participating in the fast-unto-death fell seriously ill on the fourth day and was rushed to hospital for treatment, while the remaining three continued the hunger strike. Earlier, Dr. Chamal Sanjeewa, President of the Doctors’ Trade Union Alliance for Medical and Civil Rights, visited the protest site to examine the health of the protesters and oversaw the administration of saline to those suffering from dehydration.

CSDOU Secretary Viraj Manaranga criticised authorities for refusing to listen to the protestors.

“Not a single official from the relevant authorities has come forward to hear our grievances, which is a matter of serious concern,” he said, accusing the government of negligence and “stepmotherly treatment” of the issue.

The Ceylon Teachers’ Union (CTU) echoed the need for legal and procedural adherence, noting that there are currently 40,000 teacher vacancies nationwide. The union stressed that a significant number of development officers and graduates remain outside the teaching service, despite provisions in the teacher service constitution allowing for their appointments, which fall under the powers of Provincial Councils.

National People’s Power (NPP) MP Chandana Sooriyarachchi said graduate development officers are required to sit a compulsory competitive examination. Former Education Minister Akila Viraj Kariyawasam, who oversaw appointments under the Good Governance administration, also stated that direct appointments are legally not feasible. He added that school development officers were absorbed into the teacher service in 2018 through competitive exams and stressed that appointments must follow established procedures, warning that strikes would not alter this process.

The hunger strike continues to draw attention to the demands of the Development Officers as they urge the government to take immediate steps to address their grievances.

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IMF urges Lanka to diversify trade amidst global tariff risks

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Srinivasan

Sri Lanka and other small Asian economies must accelerate trade diversification or face heightened vulnerability to global tariff disputes and shifting supply chains, warned Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund (IMF).

Speaking in Colombo on the evolving global trade landscape, Srinivasan highlighted Asia’s growing exposure, particularly in the wake of tariff tensions between the United States and China. “Asia benefited a lot from trade integration, benefited a lot from openness to trade,” he said. “So much so that when tariffs were imposed by the US, Asia was subject to the highest level of tariffs.”

He cautioned that the region that gained most from open markets is now at risk of bearing the brunt of protectionist measures. For countries like Sri Lanka, he said, the message is clear: diversify or be exposed.

Srinivasan also noted that South Asia remains the least integrated sub-region in the continent. “Having greater integration with your partners within the sub-region will take you a long way,” he said. For small economies, he added, building deeper trade ties with neighbours and broadening export and production bases is essential for resilience.

Meanwhile, Sri Lanka has received a strong vote of confidence from the IMF following a high-level meeting between President Anura Kumara Dissanayake and the delegation at the Presidential Secretariat.

The visiting IMF representatives, who arrived on January 22 to assess the damage caused by Cyclone Ditwah, spent a week touring the island, engaging with affected communities and observing the impact firsthand. In a briefing, the delegation praised the government’s swift relief efforts, infrastructure restoration, and commitment to rebuilding lives, noting widespread appreciation among citizens for the administration’s handling of the crisis.

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