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India boosts aid to Sri Lanka, focuses on neighbourhood first policy

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The India’s Ministry of External Affairs (MEA) has allocated INR 54,830 million for aid to foreign nations, higher than last year’s budget estimate of INR 48,830 million, but lower than last year’s revised estimate of INR 58,060 million.

Meanwhile, Sri Lanka saw an increase in its aid allocation at INR 3,000 million from last year’s budget estimate of INR 2,450 million.

The overall budget for the MEA stands at INR 20,516 crore — lower than the budget estimate of INR 22,154 crore and revised estimate of INR 25,277 crore, for the year 2024-2025.

Sources said that at this stage, no allocation has been made towards EXIM bank provisioning in MEA’s budget but may be done at a later phase if the need arises. This allocation of INR 20,516.61 crore is an increase of 15.45 % in comparison to last year’s budget without the allocation towards EXIM bank provisioning, sources said.

The MEA budget has placed an emphasis on India’s ‘Neighbourhood First’ policy. INR 4,320 crore — 64 per cent of the total scheme portfolio — has been earmarked for the country’s immediate neighbouINR for initiatives like large infrastructure projects such as hydroelectric plants, power transmission lines, housing, roads, bridges and integrated check-posts.

Bhutan continues to be India’s largest foreign aid recipient, receiving INR 2,150 crore in 2025-26, which is an increase from last year’s budget estimate of INR 2,068 crore. Although, this is a decrease from last year’s revised estimate of INR 2,543 crore. India’s allocation for the Maldives has increased from INR 400 crore (budget estimate) and INR 470 crore (revised estimate) to INR 600 crore. 

Afghanistan has seen its aid allocation decrease from last year’s budget estimate of INR 200 crore to INR 100 crore. But, it is an increase from INR 50 crore of revised estimates. Afghanistan has been allocated an aid of INR 100 crore, which is a decrease from last year’s budget estimate of INR 200 crore but an increase from INR 50 crore of revised estimate.

Myanmar’s allocation increased from INR 250 crore in the 2024-25 budget to INR 350 crore for 2025-26. However, the aid has decreased from last year’s revised estimate of INR 400 crore.

India has maintained its allocation for Nepal at INR 700 crore. Meanwhile, Sri Lanka saw an increase in its aid allocation at INR 300 crore from last year’s budget estimate of INR 245 crore.

Aid to Bangladesh remains unchanged at INR 120 crore while aid to African nations rose to INR 225 crore from last year’s INR 200 crore.

Latin America’s allocation has been reduced from last year’s INR 90 crore to INR 60 crore. However, the initial budget estimate was INR 30 cr. The allocation for Chabahar Port in Iran remains at INR 100 crore.

Source: The Indian Express

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GoSL to develop unique Food Security Index for SL

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The government is currently prioritizing the development of a country-specific Food Security Index, with the goal of completing the initiative within the next three months.

This tailored index is expected to better reflect Sri Lanka’s unique food security landscape, addressing the limitations of global indices such as the Global Food Security Index (GFSI), which have been criticized for failing to capture the nuances of the local context. Policymakers have also noted that existing data is often insufficient or imprecise, making it challenging to develop effective strategies.

The proposed index aims to identify key national priorities and guide food security policy over the next five years.

As a first step in this effort, a workshop titled “Identifying a Suitable Food Security Index for Sri Lanka and Formulating a Strategic Plan” was held today (17) at the Colombo City Center. Organized by the Food Security Expert Committee in collaboration with the Food and Agriculture Organization (FAO) and the World Food Programme (WFP), the event brought together experts and stakeholders from across the sector.

Delivering the opening remarks, Senior Additional Secretary to the President Kapila Gunaratne emphasized the importance of the initiative, stating that the development of a precise, country-specific index is a vital step toward ensuring both economic stability and national food security. The workshop focused on the four key dimensions of food security; availability, accessibility, utilization and stability and explored how these can be incorporated into a comprehensive and practical national index.

Participants included members of the Food Security Expert Committee, such as Senior Professors Buddhi Marambe and Jeevika Weerahewa, along with representatives from various government agencies, academic institutions, the FAO, the WFP and the private sector.

(President’s Media Division)

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Several Opp. MPs walk out of Parliament

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Several opposition members of Parliament have walked out of the Parliament chamber today (June 17.) in protest over the actions of the Speaker of House, according to Chief Opposition Whip Member of Parliament Gayantha Karunathilleka.

MP Karunathilleka noted that several MPs including those from the Samagi Jana Balawegaya (SJB), walked out of Parliament after the Speaker refused to allocate time to discuss the on-going Iran-Israel conflict.

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SL – France sign key debt restructuring agreement

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Sri Lanka and France signed a bilateral agreement yesterday (June 16) in Colombo, marking a major milestone in Sri Lanka’s external debt restructuring process, the Ministry of Finance announced.

The bilateral agreement was signed by Mahinda Siriwardana, Secretary of the Ministry of Finance, Planning, and Economic Development, on behalf of the government and William Roos, Assistant Secretary, Multilateral Affairs, Trade and Development Policies Department, Directorate-general of the Treasury, on behalf of the government of France.

The statement by the Finance Ministry added that the government of France played a pivotal role in spearheading Sri Lanka’s external debt restructuring process, co-chairing the Official Creditor Committee alongside Japan and India.

The Ministry noted that the agreement would further strengthen the longstanding bilateral relationships between the two nations.

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