External Affairs Minister (EAM) S. Jaishankar recently visited Sri Lanka, where he met with key leaders and expressed confidence in India's ongoing development and connectivity initiatives in the island nation. Jaishankar emphasised the importance of these initiatives in meeting the aspirations of the Sri Lankan people and contributing to their socio-economic progress.

External Affairs Minister S. Jaishankar is set to visit Sri Lanka on Thursday, marking his first bilateral trip abroad during his second consecutive term in office. This visit underscores India’s "Neighbourhood First Policy" and highlights New Delhi's ongoing commitment to Sri Lanka, considered its "closest" maritime neighbour and a long-standing ally.

Despite these efforts, discussions with sovereign bondholders to restructure approximately USD 46 billion of debt are ongoing. However, progress has faced hurdles, as the IMF rejected a proposal from private bondholders in March, citing misalignment with desired debt sustainability parameters.

"It was mutually agreed to engage in this review process on a quarterly basis, demonstrating a commitment to ensuring effective progress in bilateral economic cooperation," said the statement.