India is to pursue further ways of investing in Sri Lanka in addition to considering extending concessionary terms for the undrawn amount of the US$ 100 million wheat loan.

The Indian assurances were given during discussions between Economic Reform Minister Milinda Moragoda and Indian Finance Minister Jashwant Singh at the IMF headquarters in Washington on Saturday.

At the outset Moragoda thanked the Indian Minister for the prompt positive response to Sri Lanka’s request for the wheat loan facility. On a request made by Moragoda, Singh agreed to consider extending concessionary terms for the undrawn amount of the US$ 100 million loan that has been agreed upon between India and Sri Lanka.

Moragoda pointed out that the new Sri Lanka government is taking all possible steps to strengthen co-operation between Sri Lanka and India in a multifaceted form. They agreed to have regular discussions at ministerial level on bilateral economic issues between the two countries at the time of the IMF/World Bank Spring and Annual Meetings. In support of this process, the Ministers also agreed that the finance secretaries of the two countries could follow up on a regular basis in a structured manner to ensure that this initiative would bring in enhanced benefits to the two countries.

Moragoda also briefed Singh on the progress being made with regard to the peace initiative of Sri Lanka.

The Ministers also agreed to pursue further ways of encouraging Indian investment in Sri Lanka, in the context of a more liberalized economic policy framework of the new government, for the mutual benefit of both countries.