India has proposed a comprehensive assistance package worth USD 450 million to aid Sri Lanka's reconstruction efforts in the wake of Cyclone Ditwah.

This initiative was announced by External Affairs Minister S Jaishankar during his visit to Colombo on 23 December 2025. Acting as a special envoy of Prime Minister Narendra Modi, Jaishankar handed over a letter from the Prime Minister outlining India's commitment to its neighbour's recovery.

The announcement marks a transition from immediate humanitarian relief to long-term rebuilding. Operation Sagar Bandhu, India's swift response to the cyclone, has successfully concluded its initial phase. Jaishankar emphasised that this package builds directly on India's role as the first responder during the crisis.

In his address, Jaishankar detailed the scale of the relief operations. These efforts delivered approximately 1,100 tonnes of relief material to affected areas. Additionally, around 14.5 tonnes of medicines and medical equipment were provided to support urgent health needs.

Prime Minister Modi has instructed Indian officials to collaborate closely with their Sri Lankan counterparts. This partnership aims to identify and prioritise reconstruction needs. Jaishankar stressed the urgency of these measures, given the cyclone's devastating impact on infrastructure and livelihoods.

The proposed USD 450 million package comprises USD 350 million in concessional lines of credit and USD 100 million in grants. These funds are being finalised through consultations with the Sri Lankan government. The focus will be on critical areas such as infrastructure repair and economic stabilisation.

This assistance reaffirms India's "Neighbourhood First" policy. New Delhi positions itself as a reliable partner for Sri Lanka amid its challenges. Jaishankar noted that the island nation faced this natural disaster just as it was recovering from the 2022 economic crisis.

Sri Lanka's vulnerability was underscored in Jaishankar's remarks. He acknowledged the compounded difficulties created by Cyclone Ditwah. India's sustained support seeks to help Colombo navigate this uniquely challenging period.

Beyond reconstruction, India aims to bolster Sri Lanka's economic recovery. Jaishankar assured continued encouragement of tourism from India, a vital sector for the economy. He highlighted tourism's potential as a key driver for growth and stability.

Indian investments also feature prominently in the strategy. Jaishankar pointed to the scope for increased foreign direct investment from India. Such inflows could provide a much-needed boost during this critical time.

Jaishankar arrived in Colombo on Monday evening. He was received by Deputy Minister of Tourism Ruwan Ranasinghe. His visit underscores the high-level diplomatic engagement between the two nations.

This package not only addresses immediate rebuilding but also fosters deeper bilateral ties. It signals India's proactive role in regional resilience. Sri Lanka stands to benefit from tailored financial and developmental support.

The concessional credit component offers flexible financing for large-scale projects. Grants will target urgent, non-repayable needs like emergency repairs. Together, they form a balanced approach to holistic recovery.

India's rapid deployment of relief materials demonstrated logistical prowess. The 1,100 tonnes included essentials like food, water, and shelter provisions. Medical supplies addressed health crises exacerbated by the cyclone.

Ongoing consultations ensure alignment with Sri Lanka's priorities. This collaborative model enhances aid effectiveness. It minimises mismatches between donor intentions and recipient requirements.

Tourism promotion builds on existing people-to-people links. Indian visitors form a significant portion of Sri Lanka's tourist arrivals. Reviving this sector could accelerate economic rebound.

Foreign direct investment from India spans sectors like energy, ports, and manufacturing. Past projects, such as the Colombo Port expansion, exemplify successful partnerships. New opportunities could emerge in post-cyclone reconstruction.

Sri Lanka's 2022 economic turmoil involved debt defaults and shortages. Cyclone Ditwah has reignited pressures on recovery efforts. India's timely intervention provides a stabilising anchor.

Jaishankar's envoy role reflects Prime Minister Modi's personal involvement. The letter handover symbolises high-level commitment. It sets the tone for future engagements.

Operation Sagar Bandhu involved coordinated air and sea deliveries. Indian Navy and Air Force assets played key roles. This operational success paves the way for reconstruction phases.

The $100 million in grants could fund community-level initiatives. These might include housing reconstruction and agricultural revival. Concessional credits suit infrastructure megaprojects like roads and power grids.

India's neighbourhood diplomacy emphasises mutual support. Historical ties with Sri Lanka, rooted in culture and Buddhism, underpin this aid. It counters external influences in the region.

Economic recovery demands multifaceted strategies. Tourism and FDI complement reconstruction funds. They aim for sustainable growth beyond disaster response.

Jaishankar's visit concludes with optimism for implementation. Finalisation of the package proceeds apace. Sri Lanka anticipates tangible benefits in the coming months.

This development strengthens Indo-Sri Lankan strategic partnership. It exemplifies India's leadership in South Asian crisis management. Regional stability benefits from such proactive neighbourly aid.

Based On ANI Report