India and Sri Lanka is likely to have greater dialogue and consultation at Ministerial level on bilateral, multilateral and global economic issues that have bearing on both countries.

The need for such consultative mechanism at ministerial level had been acknowledged when India’s Finance Minister Yashwant Sinha and Sri Lanka’s Economic Reforms, Science and Technology Minister Milinda Moragoda met in Washington last week on the sidelines of meetings of the IMF and World Bank.

During the meeting Minister Moragoda had appraised Minister Sinha that the new government in Sri Lanka was taking all possible steps to strengthen co-operation between Sri Lanka and India in a multifaceted form.

In this regard, the two ministers agreed to have regular discussions at the 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.

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.

Minister Moragoda had also briefed the Indian Finance Minister on the progress being made with regard to the peace initiative of Sri Lanka.

Minister Moragoda had thanked the Indian Minister for the prompt positive response to Sri Lanka’s request for the wheat loan facility. In addition, on a request made by Mr. Moragoda, the Indian Finance Minister had 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.