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India commits $30 million to Colombo

By V.S. Sambandan

COLOMBO Oct. 15 . India today signed an agreement with Sri Lanka for releasing $30 million as the second tranche of a $100 million Indian Line of Credit to rebuild the island-nation.

Describing the bilateral relations as one that was "on a very, very definite and discernible upswing", the External Affairs Minister, Yashwant Sinha, said an expert group was working on a comprehensive economic partnership agreement (CEPA).

Work on the CEPA, he said, would start after the scheduled visit of the Sri Lankan Prime Minister, Ranil Wickremesinghe, on October 20. The Foreign Ministers of India and Sri Lanka described the CEPA as one that "would take the two countries to a qualitatively new level of engagement by intensifying and deepening bilateral economic co-operation". The CEPA was among the several issues that figured at the two-day Joint Commission meeting, which concluded here today.

During his visit, Mr. Sinha also gifted a state-of-the-art CT scanner to the Jaffna Teaching Hospital and a bus to the Jaffna University as "demonstration of the contribution of the Indian Government to the economic and social development of the northeast of Sri Lanka". Before concluding his visit, Mr. Sinha called on the President, Chandrika Kumaratunga, and the Prime Minister, Ranil Wickremesinghe.

Earlier, he met a cross-section of the island's political leadership, including the MPs from the Tamil National Alliance (TNA).

`Not a major breakdown'

Asked about the stalemate in the peace talks by journalists from the Indian media based here, Mr. Sinha said though there was a gap it could not be regarded as "a major breakdown of the peace process". He declined to "comment directly" on the island's cohabitation politics, but said that if a consensus cutting across party lines "was not forthcoming, to that extent it will create uncertainty for the peace process".

On the proposed ferry service between India and Sri Lanka, Mr. Sinha said: "The Tamil Nadu Government has expressed some concerns and we are trying to ensure that those are taken care of before we move forward." Conceding that there was a problem in the fishing, with frequent reports of intrusion by Indian fishermen, Mr. Sinha said the two Governments were working on a memorandum of understanding to regulate fishing and to create a suitable mechanism. Technical co-operation between the two countries was also being considered "to ensure that we not merely exploit but also harness the fishing resources".

No sanction for third navy

Asked about concerns raised that the LTTE's marine wing will function as a "third navy" Mr. Sinha said: "I don't think at this point of time there is any arrangement which sanctions a third navy". Asked if India was satisfied with the direction of the peace process, based on inputs given by the Government and the facilitators, Mr. Sinha said, "I would merely say that we are satisfied that we are kept informed".

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