A landmark deal between India and Sri Lanka promises to reshape the Eastern Province with billions in grant aid, sparking hopes of rapid development and stronger bilateral ties.
India has stepped forward with a significant boost to Sri Lanka’s development by committing Rs. 2,371.83 million under its Indian Multi-Sectoral Grant Assistance program. The grant, formalized through a Memorandum of Understanding signed on April 5, 2025, between the Government of India and the Government of Sri Lanka, is earmarked for 33 development projects in the Eastern Province.
The initiative is designed to directly address the long-standing development needs of the Eastern Province, a region often highlighted for its socio-economic gaps and underinvestment. Each of the 33 projects will focus on improving infrastructure, strengthening public services, and uplifting local communities. To ensure effective implementation, separate MoUs will be signed between the High Commission of India and Sri Lanka’s Ministry of Public Administration, Provincial Councils and Local Government for every project.
The Cabinet has already greenlit the proposal presented by the Minister of Public Administration, Provincial Councils and Local Government. This approval authorizes the Secretary to the Ministry to sign all 33 individual agreements with the Indian High Commissioner, ensuring that every project under the grant package moves forward without delay.
Officials describe the grant as not only financial aid but also a symbol of India’s continued commitment to supporting Sri Lanka’s growth and stability. The projects are expected to create immediate local benefits such as job opportunities, enhanced facilities, and improved living standards, while also fostering stronger ties between the two nations.
This massive injection of funds from India could prove transformative for the Eastern Province, marking one of the largest targeted development initiatives in recent years.
