Economy, China on India-Lanka agenda
New Delhi: India and Sri Lanka are expected to discuss economic connectivity and China during the visit of president Ranil Wickremesinghe starting on Friday. This is the Sri Lankan president’s first visit to India since taking office after his predecessor Gotabaya Rajapaksa was swept from power amid mass protests in 2022. Wickremesinghe’s visit comes even as his country continues to grapple with a protracted economic crisis with inflation soaring at 25.2%.
The International Monetary Fund projects the economy to contract by 3.1% in 2023. Economic matters may be foremost on the agenda. Both sides are expected to explore avenues to increase trade, through settlement in national currencies among other proposals.
Sri Lanka will also be looking for increased investment from India. In the leadup to the visit, Tata Sons chairman N Chandrasekaran visited the country. Reports in Sri Lanka’s media speculated that Tata may be eyeing Sri Lankan Airlines, one of the state owned companies that Wickremesinghe’s government in looking to privatise.
Both countries may also discuss an ambitious proposal to link their power grids. China’s presence in the Indian Ocean is also likely to feature in talks, given its importance to India. New Delhi has been worried by the presence of Chinese spy vessels, notably the Yuan Wang-5 which docked in Hambantota port in August 2022 despite Indian objections.
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