Countries Are Looking For Bilateral Pacts As Multilateral Treaties Recede, Says Sitharaman

Countries around the globe are looking towards more bilateral and regional agreements in a bid to ensure supply chain resilience and certainty, according to Finance Minister Nirmala Sitharaman.

There is greater interest in such agreements so that the economy is protected against uncertainties, Sitharaman said at the India-Sri Lanka Business Summit in Colombo on Thursday.

"There is clear interest in bilateral arrangements, arrangements in regional currency so (that) there are no shocks in terms of currency volatility, no forex-driven crises, and there is no food and energy insecurity," she told Indian and Sri Lankan industry representatives.

Sitharaman added that there is a need to have more common areas quickly identified, in terms of business and economic opportunities.

The two countries unveiled a joint vision document earlier in July to expand connectivity and economic cooperation.

Following talks between Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe, both countries also announced a series of initiatives, including expediting connection between the electricity grids of both countries and discussions on an economic and technological cooperation pact.

A feasibility study for a petroleum pipeline and examining the viability of a land bridge to boost connectivity between the two neighbours were also tabled.

Highlighting India's growth in solar power generation, Sitharaman said that Sri Lanka can look to improve its energy generation efforts as it holds a natural advantage.

Solar power generation costs per unit have reduced from Rs 14.45 about 6-7 years ago to Rs 2.45 owing to a favourable policy, healthy competition among industries along with nationally determined commitments for renewable energy production, she said.

Earlier in the day, Sitharaman spoke at the NAAM 200 event, which celebrated 200 years of the Tamilian population in Sri Lanka, since they were brought as plantation workers by the then British occupation forces.

Sitharaman also said that India would send teacher trainers to Sri Lanka as part of the development package for Indian-origin Tamils. India would send school bags and notebooks, solar lanterns, and stitching units for women self-help units as part of the programme as well.

India had previously announced a Rs 75-crore grant for development projects targeting Sri Lanka’s Malaiyaha (hill-country) Tamils.