India promises Sri Lanka support through long-term investments

India said on Tuesday it would keep supporting Sri Lanka, mainly through long-term investments, after giving nearly $4 billion of financial help this year as its neighbour faced its worst economic crisis in more than seven decades.

Reuters reported last week citing sources that India did not plan to provide fresh financial support to Sri Lanka, as the island’s battered economy started to stabilise after a preliminary loan agreement with the International Monetary Fund (IMF).

“We continue to be supportive of Sri Lanka in all possible ways, in particular by promoting long-term investments from India in key economic sectors in Sri Lanka for its early economic recovery and growth,” the High Commission of India in Sri Lanka said in a statement.

It said India had ongoing development projects worth about $3.5 billion in Sri Lanka, whose president earlier this month asked his officials to resolve obstacles to projects backed by India. He did not specify the obstacles or the projects.

President Ranil Wickremesinghe has also said Sri Lanka will turn a free trade agreement with India into a comprehensive economic and technological partnership.