India-Sri Lanka talks held on cooperation in Petroleum sector; India handed over 52 four-wheel tractors to Sri Lanka as part of grant assistance; IMF Comprehensive report on Sri Lanka positive;
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    • India and Sri Lanka held bilateral discussions on November 3 on the petroleum sector and sought an increased cooperation in Hydro Carbon Sector.1 India’s High Commissioner to Sri Lanka Ashok K. Kantha handed over 52 four-wheel tractors to Sri Lankan Minister of Economic Development, Basil Rajapaska in a ceremony held at Galle Face Green on November 1. This is the first lot of a total of 500 tractors, which the Government of India is supplying to Sri Lanka under grant assistance. India under a grant is also supplying 5500 kgs green gram and 43000 kgs black gram to Sri Lanka.2

    In a comprehensive report on the US$ 2.6 billion stand-by-arrangement to Sri Lanka, International Monetary Fund (IMF) has noted that the Sri Lanka's overall economic conditions are improving as expected and the economy is likely to show strong growth during the current year. But the government is yet to reduce the deficit and take action on tax reforms which have been delayed by one year. IMF suggested the Central Bank to tighten the monetary policy further if credit picks up sharply in the coming months.3

    Pakistan’s Minister of State and Chairman, Board of Investment, Saleem Mandviwalla visited Sri Lanka to explore the possibility of enhanced commercial and economic cooperation between Sri Lanka and Pakistan. Both the countries have identified cement, sugar, dairy production, chemical plants, textiles, tourism and pharmaceutical as potential areas of mutually beneficial collaborative projects in Sri Lanka.4

    During the bilateral discussion between the presidents of Sri Lanka and Nepal in Shanghai, China on October 31, Nepalese President Ram Baran Yadav requested President Rajapaksa to channel his political and diplomatic goodwill and skill in the region in sustaining positive momentum in the current political process underway in Nepal. To further improve the economic well-being in both the nations, two leaders pledged to accelerate the process of establishing the Sri Lanka- Nepal Joint Commission in Colombo.5

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