India and Sri Lanka share civilizational, cultural, and economic linkages dating back over 2,500 years, rooted in Buddhist ties, maritime trade, and shared colonial history.
Financial Assistance
India extended over USD 4 billion in assistance through credit lines, currency swaps, and grants
Provided a USD 1 billion credit line for essentials such as food, medicines, and fuel.
Supplied over 400,000 MT of fuel, life-saving drugs, and rice consignments
USD 400 million currency swap under the SAARC framework and deferred USD 515 million in ACU payments, easing liquidity pressure.
Support for Debt Restructuring and IMF Assistance
India became the first country to provide written assurance to the IMF supporting Sri Lanka’s debt restructuring plan, crucial for securing the USD 2.9 billion IMF bailout.
Advocated for equitable debt treatment among all creditors.
Trade, Connectivity, and Energy Cooperation
Advanced the India-Sri Lanka Economic and Technology Cooperation Agreement (ETCA) and Bilateral Investment Treaty (BIT) for economic revival.
Revived strategic projects such as the Trincomalee Oil Tank Farm modernization and proposed India-Sri Lanka power grid interconnection.
Symbol of Age-Old Friendship
Non Reciprocity (Neighbourhood First Policy) – India’s assistance came without strategic strings.
Embodied the ethos of “Vasudhaiva Kutumbakam”, upholding regional solidarity and stability.
Reaffirmed India’s role as a trustworthy regional leader and first responder in crises.
India’s response reflected its “humanitarian diplomacy”-guided by empathy, not conditionality.