5 min readNew DelhiAug 6, 2026 05:10 AM IST
India and Sri Lanka have agreed to take forward the negotiations on updating the Free Trade Agreement and will sign the Social Security pact soon, as Foreign Secretary Vikram Misri met Sri Lankan President Anura Kumara Dissanayake in Colombo on Wednesday.
The discussions between visiting Foreign Secretary Misri and Sri Lankan President Dissanayake focused on issues of “mutual interest and review of key bilateral projects, including assisted development projects in Sri Lanka”.
Following the meeting, both sides exchanged agreements on INR-denominated Lines of Credit for USD 350 million, which form part of the USD 450 million reconstruction package extended by India in the wake of Cyclone Ditwah. The LoCs will support reconstruction, infrastructure development, and procurement requirements that arose in the aftermath of the cyclone, the Indian High Commission in Sri Lanka said.
The Foreign Secretary also “called upon the Sri Lankan leadership to implement their commitment to hold Provincial Council elections at the earliest and to fully implement the Constitutional provisions of Sri Lanka to meet the aspirations of the Tamil people”, MEA said.
“He also welcomed President Anura Kumara Disanayaka’s assurances as contained in the Joint Statement of December 2024 that Sri Lankan territory shall not be permitted to be used in any manner inimical to the security of India and conveyed that this provides a strong foundation to build a comprehensive and mutually beneficial development partnership between India and Sri Lanka to fulfil the aspirations of our respective peoples for security and prosperity,” the MEA said.
“There was also discussion on strengthening our partnership on economic matters. Both sides welcomed the initial discussions in June this year and the decision to take forward negotiations on updating the Free Trade Agreement between India and Sri Lanka. They also welcomed the successful conclusion of negotiations on India-Sri Lanka Social Security Agreement. The Agreement is expected to be signed soon following completion of necessary internal procedures on both sides,” it said.
Misri, who arrived in Colombo for a day-long visit, also held a meeting with Foreign Minister Vijitha Herath during which they reviewed ongoing cooperation in key priority areas. This was his first stand-alone visit to Sri Lanka as Foreign Secretary. He also met Prime Minister of Sri Lanka, Harini Amarasuriya and Leader of Opposition Sajith Premadasa and had separate meetings with leaders of Sri Lankan Tamil and Indian Origin Tamil community.
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According to the MEA, they expressed satisfaction at the progress registered in the implementation of various projects, including under the reconstruction package of USD 450 million, announced following cyclone Ditwah. In particular, they welcomed the conclusion of agreements on two INR-denominated Lines of Credit of USD 250 million for the railway projects and of USD 100 million for livestock and other priority requirements respectively.
“Both sides also noted that reconstruction of damaged houses and construction of permanent bridges under the Ditwah Reconstruction Package and covered under a grant of USD 100 million will commence shortly… Both sides are also working towards earliest possible implementation of an Island wide disaster warning system for Sri Lanka. They also expressed satisfaction that the work on rehabilitation of Northern Railway corridor under a grant of USD 5 million has been completed and train services have resumed,” MEA said.
It said that the two sides also discussed modalities for “expediting implementation of energy projects, including electricity grid interconnection project, Sampur solar power project and development of Trincomalee as an energy hub”.
They also agreed to work towards the earliest possible conclusion of the tender process for implementation of the Sri Lanka Unique Digital Identity project.
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“They also directed that discussions be initiated at the earliest to conclude an MoU on rehabilitation and modernisation of Kankesanthurai harbour project, to be implemented under a grant of USD 61.5 million. Recalling the commitment made during the visit of Prime Minister of India to Sri Lanka in April 2025, the two sides agreed that the MoU to implement the proposed expansion of the 1990 Suwa Seriya Ambulance service should be concluded at an early date. They also noted with satisfaction that the initiative on capacity building announced during the visit of the Prime Minister last year has also been implemented successfully, covering over 1,000 Sri Lankan professionals from different sectors in its first year,” it said.
During the visit, MEA said that the Foreign Secretary also discussed issues pertaining to “fishermen and requested Sri Lanka’s cooperation for early release of fishermen and boats detained in Sri Lanka”.
“He also requested that even as bilateral mechanisms continue to work towards finding a resolution of the various issues, a humanitarian approach keeping in view the livelihood requirements of fishermen should continue to guide our approach,” it said.