The Sri Lankan Government is to receive Rs. 2,371.83 million from the Government of India, for the implementation of 33 development projects across the Eastern Province.
This funding was received under an Indian multi-sectoral grant assistance programme, a statement released by the Department of Government Information, yesterday (28) said.
“Thirty three MoUs related to 33 projects to be implemented in the Eastern Province under the Indian multi-sectoral grant assistance, signed with the Indian High Commissioner for Public Administration, The Secretary to the Ministry of Provincial Councils and Local Government has received the approval of the Cabinet of Ministers to sign,” the statement said.
“Under this agreement, the Government of India has agreed to provide a grant of Rs. 2,371.83 million to implement 33 projects that meet the development needs of the Eastern Province.”
The Sri Lankan Cabinet of Ministers approved a Memorandum of Understanding (MoU) formalising this initiative in December of 2024.
According to the Economic Times, an Indian news publication, the infrastructure investments are to span across education, health and agriculture sectors in the Eastern Province.
The report stated that India is to provide Rs. 315 million for education, Rs. 780 million for health, and Rs. 620 million for agriculture under the arrangement.
According to a statement made by the High Commission of India in Sri Lanka back in September, with the investment into the Karainagar boatyard, the Indian Government had a $ 5 billion cooperation portfolio with Sri Lanka.
The Government of India has also extended INR 450 million for Sri Lanka’s digital identity project, which is to kickstart in March of 2026.
Indian media reported that from its 2025 budget, the Indian Government allocated around INR 3 billion for Sri Lankan assistance.
In April of 2025, Sri Lanka concluded its debt restructuring with India, totaling $ 1.4 billion, during Indian Prime Minister Narendra Modi's visit to the island nation.
The 33 MoUs are to be signed separately between the Indian High Commission and the Ministry of Public Administration, Provincial Councils, and Local Government in relation to each project to be implemented as per the said MoU.