Responding to rapid changes in the economic landscape of Sri Lanka, the Government of India (GOI) has increased the financial allocation for various grant projects being implemented across the length and breadth of the country. Financial allocation has been increased by up to 50% in the case of nine ongoing projects that are being executed under the India-Sri Lanka High Impact Community Development Project (HICDP) framework. The overall financial commitment for these nine 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 GOI has completed more than 60 grant projects under the HICDP framework, covering all 25 districts of Sri Lanka. In addition, 20 other projects are in different stages of implementation. The HICDP framework was signed between the two countries in 2005 and subsequently renewed three times, for a period of five years each time. It may be recalled that the GOI also doubled the ceilings for individual projects as well as the overall financial capital outlay under the framework in January 2023.
The GOI’s overall development cooperation partnership portfolio in Sri Lanka is around USD 5 billion, of which USD 600 million is a grant. Demand-driven and people-centric projects carried out by the GOI span across areas such as infrastructure development, housing, livelihood assistance, etc. The 1990 Emergency Ambulance Service, Railway Track Rehabilitation, Integrated Water Plants, Indian Housing Project, and Jaffna Cultural Centre are among the landmark projects completed by the GOI in Sri Lanka.
