India steps up support for Sri Lanka

By Nisthar Cassim in New Delhi

India is stepping up political, financial, social and moral support for Sri Lanka to successfully win the challenge of creating lasting peace following the successful crushing of terrorism.

* Premier Manmohan Singh in P’ment commits US$ 110 m as immediate financing for relief and resettlement of IDPs, pledges more as
situation improves
* Foreign Secy. Menon says time opportune for both Sri Lanka and India to work together with greater vigour and trust for mutual prosperity Prime Minister Manmohan Singh yesterday pledged in Parliament that the Indian Government will immediately extend a fresh US$ 110 million, or Indian Rupees 5 billion (over 12 billion Sri Lanka rupees), as support for relief and resettlement of the 300,000 Internally Displaced Persons (IDPs) in the North, whilst the friendly neighbour stands ready to extend further support as normalcy returns.
This pledge was reiterated by India’s Foreign Secretary Shiv Shankar Menon when he briefed a select group of visiting Sri Lankan editors on Tuesday at his office in New Delhi.
Prior to the latest pledge, India had committed 170,000 family kits (containing food, clothes and other essentials for a family of five) for the IDPs delivered via the ICRC apart from operating a mobile hospital with specialist doctors and shipping urgently required medicines. India has also agreed to build temporary shelter for 5,000 families whilst funding four new de-mining missions in addition to the present two teams already on the job.
Menon said that the end of terrorism has heralded an excellent opportunity for both Sri Lanka and India to work together with greater vigour and trust for mutual prosperity and stakes. “The Time is right since both countries share basic values and common interest.”
The Indian Foreign Secretary expressed confidence that prospects for stronger bilateral ties were bright and that there is greater political will and confidence from both sides to pursue such a course.
Menon however, said that Sri Lanka as a nation must not wallow at this crucial moment but overcome respectively from the “momentary” feeling of loss and also “triumph” as a result of the conflict and the defeat of terrorism. “Sri Lanka must look to the future seizing this moment of opportunity to work together and ensure the well being, safety and prosperity of all the people.
India which has backed Sri Lanka’s fight against terrorism, has welcomed President Mahinda Rajapaksa’s commitment to win lasting peace following the defeat of terror unleashed by the LTTE.
“Winning peace is a huge challenge but we see greater political will from President Rajapaksa and India will work together with Sri Lanka to achieve this goal,” Menon added.
“We have a great interest to see a peaceful Sri Lanka and I could say Sri Lanka is in a better position today than in the past to achieve it,” he said noting that nobody else from outside can substitute the domestic political will needed to resolve internal issues.
India is expecting an important official visit shortly by President Rajapaksa, his first tour since the mid-May triumphant victory of crushing terrorism of LTTE, which was a menace for both countries.
Menon also emphasised that peace and prosperity was a win-win phenomena for all countries in the South Asian region and that was the rational for India’s commitment.  “Our futures are interlinked and peace is of strategic imperative for the region,” he added.
The Foreign Secretary also noted that India and Sri Lanka can do a great deal together given its rich, strong and intimate legacy of bilateral ties. It was emphasised that for Sri Lanka India represents a huge economic opportunity as well given its market size and the growing affluence of her people.
“It was in recognition of this potential that the Free Trade Agreement (FTA) was signed between Sri Lanka and India. The massive growth in bilateral trade is a testimony to its positive benefits,” Menon added. Bilateral trade in 2008 amounted to US$ 4.4 billion as opposed to a mere $ 1.8 billion in 2004 and much lower in the late 1990s.
Menon also said that the environment for higher investments was better along with greater scope for linkages between select industries such as apparel, tea if bilateral complementary and comparative advantages are properly harnessed.
The much awaited Comprehensive Economic Partnership Agreement (CEPA) that covers investments and services, between the two countries as a follow up to the goods-only FTA is likely to be signed later this year as the draft has been initialled.
Meanwhile, in the Indian Parliament, Premier Manmohan Singh declared that the Tamil problem was “larger than that of the LTTE” and expressed hope that Sri Lanka would show courage in meeting their legitimate concerns.
“The Tamil problem is larger than that of the LTTE. We hope Sri Lanka will show imagination and courage in meeting the legitimate concerns and aspirations of the Tamil people to live their lives as equal citizens and with dignity and self-respect,” he told the sessions of Lok Sabha, according to the Press Trust of India.