Sri Lanka, India sign MOU to cooperate on economic projects

Apr 27, 2017 (LBO) – Sri Lanka and India signed an MoU on economic co-operation in the presence of Prime Minister Narendra Modi and Sri Lankan counterpart Ranil Wickremesinghe in New Delhi Wednesday. As per Indian media reports, the MoU proposes Indian investment in development of port and oil tank farms in Trincomalee, setting up of a LNG power plant and terminal, piped gas supply in capital Colombo, highway and railway projects in north and east of the country.

"Held comprehensive talks with PM Ranil Wickremesinghe on ways to strengthen India-Sri Lanka ties for the benefit of our citizens," Modi tweeted after the meeting held at Hyderabad House.

The Sri Lankan Prime Minister also held discussions with former Prime Minister Dr Manmohan Singh and Congress president Sonia Gandhi. Wickremesinghe arrived in New Delhi on Tuesday evening on a five-day visit to India. Cabinet yesterday approved the said proposal made by Wickremesinghe about the MOU on cooperation in economic projects.

The Cabinet has also noted that separate Cabinet Memorandums will be presented on joint ventures discussed with relevant parties by the relevant ministries. Meanwhile, Cabinet Spokesman Rajitha Senarathne told reporters today that discussions are underway to sign a separate agreement with India to form a joint venture company to operate and manage oil storage tanks in Trincomalee under a 50 year lease agreement. Seventy four tanks are expected to be use by the proposed joint venture company and discussions are also underway to get ten oil tanks for CPC.