India announces USD 450 million assistance for Sri Lanka’s reconstruction

24-Dec-2025

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Indian External Affairs Minister Dr. S. Jaishankar announced that India will provide USD 450 million to support Sri Lanka’s reconstruction, comprising USD 350 million in concessional loans and USD 100 million in grants.

Speaking at a joint media briefing, Dr. Jaishankar said he arrived as a special envoy of Indian Prime Minister Narendra Modi with a message for President Anura Kumara Dissanayake, reaffirming that India now stands “shoulder to shoulder” with Sri Lanka more than ever.

Dr. Jaishankar met President Dissanayake on the morning of Dec 23 at the Presidential Secretariat, followed by meetings with Foreign Minister Vijitha Herath and the joint media briefing.

He detailed India’s disaster response under “Operation Sagar Bandhu,” including naval vessels INS Vikrant and INS Udayagiri, Mi-17 helicopters, a 80-member National Disaster Response Force team, and a field hospital near Kandy that treated over 8,000 patients.

India also installed Bailey bridges in Kilinochchi and Chilaw to restore connectivity. Over 1,100 metric tonnes of relief supplies, 14.5 tonnes of medical supplies, and 60 tonnes of rescue equipment were delivered.

The USD 450 million package will support reconstruction of roads, railways, bridges, housing, health and education infrastructure, agriculture recovery, and disaster preparedness in cyclone-affected sectors.

India also pledged to promote Sri Lankan tourism in India and encourage increased Indian foreign direct investment.