Colombo, Sri Lanka – As the full moon of June illuminates the island, Sri Lanka immerses itself in the profound spiritual significance of Poson Poya,
commemorating the arrival of Buddhism to our shores. This sacred occasion, celebrated with fervent religious events across the nation from yesterday till the end of this week, serves as a poignant reminder of a truly precious gift bestowed upon us by our closest neighbor: India.
Centuries ago, the venerable Arahant Mahinda Thera, son of Emperor Ashoka, journeyed from the ancient land of India to Mihintale, bringing with him the serene and enlightened teachings of the Buddha. This singular act transformed Sri Lanka, shaping our culture, philosophy, and national identity for millennia to come. It was a noble gesture, a spiritual transmission that resonates in every facet of our society. As a Buddhist nation, gratitude is deeply ingrained in our ethos, a principle beautifully exemplified by the Buddha himself through the 'Animisalochana Puja' – the unblinking gaze of gratitude he offered to the Bodhi tree under which he attained enlightenment in Bodh Gaya. This timeless act of appreciation for the source of one's blessings is a lesson we hold dear, and it extends profoundly to our relationship with India.
Beyond this ancient spiritual connection, India has consistently proven itself a true 'kalyana mithra' – a noble friend – to Sri Lanka, especially in recent years as we faced unprecedented socioeconomic challenges. This unwavering support became particularly visible after Prime Minister Narendra Modi's significant visit to Sri Lanka in May 2017, where he was the Chief Guest for the UN Vesak Day Celebration in Colombo. This visit underscored the deep historical and cultural ties, setting the stage for even stronger collaborative efforts.
When Sri Lanka faced its most severe economic crisis in recent memory, India was the first to extend assistance, demonstrating remarkable solidarity. In 2022, India stepped up with approximately USD 4 billion in multi-pronged assistance, becoming a lifeline that helped us navigate dire shortages and stabilize our economy. This encompassed crucial credit lines, including:
- A USD 500 million Line of Credit for the immediate procurement of essential petroleum products in February 2022.
- A substantial USD 1 billion concessional credit facility in March 2022, ensuring the availability of critical supplies like food and medicine. This credit line was further extended until March 2024, showcasing India's sustained commitment.
- A USD 55 million Line of Credit for urea fertilizer in June 2022, directly supporting our agricultural backbone.
These financial interventions were crucial in preventing a complete collapse of essential services and provided the necessary breathing room for Sri Lanka to begin its journey towards recovery.
Grants: Investing in Sri Lanka's Future
Moreover, India's generosity extends beyond loans. In the last decade, India has provided substantial grant assistance, totaling approximately USD 780 million as of early 2025. These grants, which do not require repayment, are direct investments in our nation's development and well-being. The distribution of these grants includes roughly USD 390 million for completed projects, USD 211 million for ongoing initiatives, and nearly USD 180 million committed for projects in the pipeline. Notable contributions include:
- The transformative Indian Housing Project, India's largest grant initiative overseas, which has committed around USD 220 million for building 60,000 houses, particularly benefiting war-affected areas and plantation communities.
- The remarkable conversion of over USD 100 million worth of loans into grants, providing significant fiscal relief and demonstrating genuine empathy. This includes projects like the rehabilitation of the Kankesanthurai Harbour and railway signaling projects.
- Grant assistance of approximately USD 36 million for the Sri Lanka Unique Digital Identity (SLUDI) Project, aiding our digital transformation.
- Significant humanitarian aid during the crisis, encompassing donations of medicines, food, and other essential items.
- Various other development projects, such as the 150-bed multi-specialty hospital in Dickoya, livelihood support programs, scholarships for our students, and training for our civil servants.
- Recent commitments, including a USD 391 million new assistance package in early 2025 and a comprehensive grant assistance package of INR 75 crore announced during the Sri Lankan President's visit to India in July 2023.
India's financial assistance to Sri Lanka over the past decade underscores a deep-rooted commitment to fostering stability, growth, and development in its closest maritime neighbor. This comprehensive support, encompassing both vital credit lines and substantial grants, highlights India's role as a reliable and compassionate partner, contributing significantly to Sri Lanka's journey towards economic recovery and sustainable progress. As a nation nurtured by the noble essence of Buddhist philosophy, we must never forget the support by our neighbor. It is our solemn duty and privilege to stand in solidarity with India, today, tomorrow, and for many years to come. Indeed this enduring friendship, rooted in millennia of shared heritage and strengthened by modern solidarity remains the bedrock of Sri Lanka’s future.
@Dr Damenda Porage
