India plans to make investments across different private and public sectors in Sri Lanka and link the island- nation’s economy to that of India. Some sectors that India is looking forward to investing in are renewable energy, hydrocarbons, ports and infrastructure, IT, and hospitality.
Even though Sri Lanka is facing its worst economic crisis, Indian investors in the neighboring country are still not ready to put an end to their investments and businesses because of Sri Lanka’s strategic location and its enormous potential.
The three major sources of revenue for the Sri Lankan economy are exports, tourism, and remittances. The Covid pandemic resulted in the wilting of some of these sources. The Sri Lankan economy will receive an advantage from more investments, and the Indian government is trying to encourage this.
The motive is to foster trade, investment, and cooperation between the two countries. The NTPC is eyeing at building a solar power plant in Sampur in eastern Sri Lanka under collaboration with the Ceylon Electricity Board (CEB).
Since the start of 2022, India has rendered aid and humanitarian assistance worth more than $4 billion to Sri Lanka, the largest ever given to any country, to help the island nation overcome its crisis of food, fuel, medicines, and other essential items.