Sri Lankan Government turns down India’s offer to develop the Palali airport; India’s NSA Shiv Shankar Menon visits Sri Lanka; US decides to continue GSP concession to Sri Lanka; Sri Lanka met all June target set by the IMF
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  • (JUNE 25-JULY 1)

    According to reports, Sri Lankan Government has turned down India’s offer to develop the Palali airport and instead decided to handle it under the Sri Lankan Ministry of Civil Aviation.1

    Meanwhile, reports noted that Indian National Security Advisor Shiv Shankar Menon accompanied by the Joint Secretary (BSM) Harsh Vardhan Shringla went to Colombo on June 29, 2012 to discuss issues arising out of Sri Lanka’s reluctance to fulfil its promises, more than three years after the crushing defeat of the Tamil Tigers. During his short visit, NSA Menon met Sri Lankan President Mahinda Rajapaksa, External Affairs Minister Prof. GL. Peiris, Defence Secretary Gotabaya Rajapaksa and TNA leader R. Sampanthan. 2 Menon reportedly raised India’s concerns over the failure on the part of the government and the TNA to find a way forward to break the deadlock in the process of evolving a political solution to the national question, to address land issues in the north and to scale down the presence of military. After the meeting, he briefed Indian journalists based in Colombo and said, “I discussed recent developments, bilateral relations and areas of common concern. I was also briefed about steps being taken by the Government of Sri Lanka on political reconciliation and settlement. While this is a Sri Lankan issue and something that Sri Lanka has to do, we will continue to remain engaged with all concerned and offer any support required in this regard. 3

    Reports noted that United States has decided to continue the Generalized System of Preferences (GSP) concession to Sri Lanka as the government of Sri Lanka has taken significant steps to improve the worker rights environment in the country. 4

    In other developments, Central Bank of Sri Lanka’s Governor Ajith Nivard Cabraal has said that Sri Lanka has met all June-end targets set by the International Monetary Fund (IMF) for the last tranche of a $2.6 billion loan. 5

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