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India offered a three-year debt moratorium to Sri Lanka during a review of their bilateral relations at high-level official talks here, the two sides said in a joint statement Tuesday.



India offered a three-year debt moratorium to Sri Lanka during a review of their bilateral relations at high-level official talks here, the two sides said in a joint statement Tuesday. India's foreign secretary Shyam Saran discussed Sri Lanka's tsunami reconstruction efforts with his counterpart H.







M. Palihakkara and offered more assistance, the statement said.

"Indian participation in post Tsunami reconstruction efforts was discussed and foreign secretary Saran announced a debt moratorium of three years on repayment of Sri Lankan debt to India," the statement said.

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Sri Lanka's outstanding debt to India is nearly 95 million dollars. New Delhi has also recently offered a separate 150 million dollar credit line for the island to import petroleum products from its giant neighbour.

"A wide range of bilateral issues of mutual interest were discussed...including defence matters," an Indian diplomat here said without elaborating.

Sri Lanka has proposed a defence cooperation pact with Indi