India signs MOU with Sri Lanka to establish Business Centre for ICT incubators/accelerators in Jaffna
The governments of India and Sri Lanka have signed a Memorandum of Understanding (MOU) to establish a Business Centre for ICT incubators/accelerators in the northern Jaffna peninsula through a grant of Rs. 250 million from the government of India.
The MOU was signed by High Commissioner of India to Sri Lanka Taranjit Singh Sandhu and Sri Lanka’s Ministry of Development Strategies and International Trade Secretary S. T. Kodikara at Temple Trees in the presence of Sri Lankan Prime Minister Ranil Wickremesinghe, Minister of Development Strategies and International Trade of Sri Lanka Malik Samarawickrema, Deputy Minister of Development Strategies and International Trade of Sri Lanka Nalin Bandara Jayamaha, Member of Parliament Mavai Senathirajah, Sri Lanka’s Export Development Board Chairperson Indira Malwatte, and several other invited guests and senior officials of Government of Sri Lanka.
This project is part of the Government of India’s continued efforts to assist and cooperate with the Sri Lankan government in people-oriented development projects.
According to a statement issued by the Indian High Commission of Sri Lanka, the Business Centre would provide opportunities and enhance the enabling environment for Information Communication Technology (ICT) and other professional services in the northern region.
According to reports, the ongoing development projects in the Northern Province under the Government of India’s grant assistance include: construction of a Cultural Centre in Jaffna; construction of school buildings to 27 schools; construction of 3,000 rain water harvesting units and construction of 25 model villages consisting of 600 houses among others. Across the country, India have completed more than 70 people-oriented development projects and 20 such projects are currently under implementation. India’s overall commitment of development assistance to Sri Lanka stands at a total of around US$ 3 billion, out of which US$ 560 million is pure grant assistance.
OSL take:
The signing of the MOU to establish a Business Centre for ICT incubators/accelerators in Sri Lanka’s northern Jaffna peninsula would further strengthen bilateral relations as well as trade links between Sri Lanka and India. India has already provided grant assistance amounting to millions of dollars and is currently engaged in many development programmes in the neighboring island nation. Sri Lanka and India have had strong historical links and now enjoys a free trade agreement (FTA) that allows for strong trade ties. Given the close ties between Sri Lanka and India and the benefits enjoyed by Sri Lanka when doing business with neighboring India, foreign businesses/investors keen on doing business with India could look at setting up base in Sri Lanka to penetrate the Indian market.
| Article Code : | VBS/AT/25022019/Z_1 |