India on Tuesday announced a $450-million reconstruction package for Sri Lanka to aid relief and repair efforts in the wake of Cyclone Ditwah, as external affairs minister S Jaishankar said New Delhi stands ready to provide further assistance in crucial sectors such as tourism and investment for rebuilding the island nation.
Jaishankar, who arrived in Sri Lanka on Monday as a special envoy of Prime Minister Narendra Modi, met President Anura Kumara Dissanayake to discuss reconstruction efforts and handed over a letter from the PM that included a commitment for a package with $350 million in concessional credit lines and $100 million of grants.
“As your closest neighbour and in line with our ‘neighbourhood first’ and Mahasagar policies, it was only natural that India step forward at a time when Sri Lanka faced a crisis. We have done so when you were going through economic difficulties as well,” Jaishankar said at a media interaction alongside his Sri Lankan counterpart Vijitha Herath.
Herath expressed appreciation for the “unprecedented assistance” worth $4 billion, including credit lines for essential goods and petroleum, bilateral currency swaps and deferring of loan repayment, provided by India when Sri Lanka faced an economic crisis during 2022-23.
Noting that the new relief package will provide meaningful support to Sri Lanka’s recovery and rebuilding efforts, Herath said: “Through this gesture, India has once again demonstrated its enduring friendship and solidarity.”
Jaishankar said the reconstruction package is being finalised in consultation with Sri Lanka and will focus on sectors most affected by the cyclone. The package will cover repairs of road, railway and bridge connectivity, support reconstruction of damaged houses, rebuild damaged health and education systems, boost agriculture, including addressing possible shortages, and improve disaster response and preparedness.
“We are conscious that work towards mitigating the impact of Cyclone Ditwah on the people of Sri Lanka must be done in the quickest time possible. We are discussing an effective coordination mechanism for earliest possible delivery,” he said.
Cyclone Ditwah, which struck Sri Lanka in late November, caused damage to buildings, agriculture and critical infrastructure estimated at $4.1 billion, according to a World Bank report released on Monday. This damage is equivalent to about 4% of Sri Lanka’s GDP.
The cyclone, among the most intense and destructive in Sri Lanka’s recent history, severely affected nearly two million people and 500,000 families across all 25 districts of the country, disrupting livelihoods, essential services and the broader economy.
“Given the scale of damage, restoring connectivity was clearly an immediate priority,” Jaishankar said.
India has already played a key role in relief efforts, providing more than 1,100 tonnes of relief materials such as dry rations, clothes, tents and water purification kits, 14. 5 tonnes of medicines and medical equipment, and another 60 tonnes of equipment to assist the relief operations.
Operation Sagar Bandhu, India’s relief and assistance mission, began on the same day that Cyclone Ditwah made landfall, and New Delhi used its naval warships and military aircraft to deliver aid, while helicopters and an 80-member team from the National Disaster Response Force were used for search and rescue operations. The Indian Army set up a field hospital with 85 medical personnel near Kandy, which has treated more than 8,000 people.
A contingent of Indian Army engineers is in Sri Lanka with 228 tonnes of Bailey Bridge units to restore connectivity. Jaishankar and Herath jointly inaugurated a 120-foot Bailey Bridge in Kilinochchi district of the Northern Province, one of the areas severely impacted by Cyclone Ditwah. Another Bailey Bridge is being set up at Chilaw.
Herath noted that Jaishankar’s visit is a “strong reflection” of the close friendship between the two countries, and India’s role as a first responder, and thanked the Indian government for its assistance, both during the economic crisis and after the cyclone.
“This timely intervention has brought much-needed relief to affected communities and has been invaluable to Sri Lanka’s national response efforts,” he said.
Herath also appreciated India’s crucial role in Sri Lanka’s debt restructuring process, and asked Jaishankar to help bolster traveller confidence and encourage continued visits as the country’s tourism sector has rebounded after Cyclone Ditwah. India is currently the largest source of tourists for Sri Lanka.
Jaishankar said India will continue to encourage tourism traffic from India, and noted that an increase in Indian foreign direct investment can boost the economy. “Our discussions will, therefore, keep in mind promoting a deeper cooperative relationship between our two countries,” he said.