India and Sri Lanka on 26 April 2017 signed a Memorandum of Understanding (MoU) on economic co-operation. The agreement was exchanged in the presence of Prime Minister Narendra Modi and Sri Lankan Prime Minister Ranil Wickremesinghe in New Delhi.
Ranil Wickremesinghe arrived in Delhi on 25 April 2017 with an aim to finalise an MoU on developing energy and infrastructure projects in Trincomalee, Sri Lanka and will discuss the issue of fishermen between the two countries.
Moreover, he will also stress for speeding up negotiations for the upgraded Free Trade Agreement ETCA (Economic and Technical Cooperation Agreement) between the two countries.
Highlights of the MoU
• The MoU proposes Indian investment in development of port and oil tank farms in Trincomalee.
• It also calls for setting up of a LNG power plant and terminal, piped gas supply in Sri Lankan capital Colombo.
• It also aims to undertake highway and railway projects in north and east of Sri Lanka.