“The entire constitution is under review, so is the devolution of power in Jaffna”

Sri Lanka's Foreign Minister GAMINI LAKSHMAN PEIRIS speaks with Manish Kumar Jhaof BW Businessworld on the entire range of issues that reflect the severity of the current economic crisis and the measures needed to alleviate the situation

- Manish Kumar Jhaof

How do you look at the bilateral relations with India amid the complex geopolitical environment in the region? And while India puts ‘neighbourhood first’ in its foreign policy, do you also see the relations in a similar way with India?

Certainly, the emphasis is on economic objectives. We have 66 missions abroad and we have told all of them in very clear terms that their priority this year should be economic diplomacy, by which we mean trade, investment and tourism. Our relationship with India is at a very satisfying threshold. In every sector, be it the power sector or tourism sector, there is closer integration. For instance, Ceylon Electricity Board can produce approx. 4,300 MW of electricity, while NTPC, an Indian company, produces about 60,400 MW of electricity. We are also interested in generating wind power in Mannar Island and district, which the Adani group and others in India are keen on developing.

Then if you take the oil, petroleum gas sector, we concluded the Trincomalee oil tank cooperation. We have 99 tanks there which had been lying idle for 17 years. But now that has been sorted out, we have entered into a joint venture where 51 per cent stakes will be held by Ceylon Petroleum Corp (CPC) and 49 per cent by Lanka India Oil Corporation (LIOC). So the storage capacity is very useful. With fluctuating oil prices, we can store oil when the prices are good. And also, since India is the third-largest oil consumer in the world and since Sri Lanka would have to access international markets to purchase oil, it would make sense for us to access international markets through India. There would be price advantage.