India increases financial allocation for implementation of SL grant projects

September 1, 2023 at 5:11 PM

The Government of India (GOI) has increased the financial allocation for various grant projects being implemented across Sri Lanka. 

According to the Indian High Commission in Colombo, the decision has been taken in response to rapid changes in the economic landscape of Sri Lanka. 

Financial allocation has been increased by up to 50% in the case of 9 ongoing projects that are being executed under the India-Sri Lanka High Impact Community Development Project (HICDP) framework. 

The overall financial commitment for these 9 projects currently stands at close to SLR 3 billion, after the increase. These projects cut across sectors ranging from education and health to agriculture, among others.

The Indian High Commission further said that the Indian Government has completed more than 60 grant projects under the HICDP framework, covering all 25 Districts of Sri Lanka. In addition, 20 other projects are under different stages of implementation. The HICDP framework was signed between the two countries in 2005 and subsequently renewed thrice, for a period of five years each time. It may be recalled that GOI also doubled the ceilings for individual projects as well as the overall financial capital outlay under the framework in January 2023.

The Indian Government’s overall development cooperation partnership portfolio in Sri Lanka is around USD 5 billion, of which USD 600 million is grant. 

The Indian High Commission stated that demand-driven and people-centric projects carried out by GOI span across areas such as infrastructure development, housing, livelihood assistance, etc 1990 Emergency Ambulance Service, Railway Track rehabilitation, Integrated Water Plants, Indian Housing Project and Jaffna Cultural Center are among the landmark projects completed by GOI in Sri Lanka. (NewsWire)