Memorandum of Understanding between the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka for Cooperation in Economic Projects

The Government of the Republic of India (hereinafter referred to as GOI) and the Government of the Democratic Socialist of Republic Sri Lanka (hereinafter referred to as GOSL), collectively referred to as ‘the Parties’;Reaffirming the traditionally close and friendly relations between the two countries and their continuing endeavours to enhance bilateral relations through increased economic, investment and development cooperation for the mutual benefit of their people:Have entered into the following understanding in accordance with their national laws: ARTICLE I OBJECTIVES

To achieve greater economic, investment and development cooperation in a progressive manner, through joint ventures and other cooperative activities that will ensure the well being of the people of the two countries on the basis of equality and mutual benefit. ARTICLE II AREAS AND SCOPE OF COOPERATION

Both the Governments have agreed to complete the following joint projects in Sri Lanka and have agreed to work out the modalities between them at the earliest: A regasified Liquefied Natural Gas (LNG) fired 500 megawatt capacity LNG Power Plant, for which GOSL will issue a Letter of Intent to GOI or to a GOI representative by end May 2017. An LNG Terminal / Floating Storage Regasification Unit (FSRU) in Kerawalapitiya/ Colombo; a piped gas distribution system; retail outlets for supply of Compressed Natural Gas (CNG) to the transportation sector; and conversion of liquid fuel-based power plants to R-LNG fired power plants in Sri Lanka. GOSL will issue a Letter of Intent for the FSRU and the LNG package to GOI by mid May 2017. For the LNG Terminal / Floating Storage Regasification Unit (FSRU) in Kerawalapitiya/ Colombo, a Joint Venture will be formed among entities of Sri Lanka, India and Japan, for which modalities will be worked out by end July 2017. A Joint Working Group (JWG) will be constituted and will meet in the first half of May 2017. GOI will submit a Detailed Project Report (DPR) to GOSL by end August 2017 on the piped gas distribution system and retail outlets for supply of Compressed Natural Gas (CNG) to the transportation sector. A 50 MW (extendable to 100 MW) Solar Power Plant in Sasmpur, for which GOSL will issue a Letter of Intent to GOI or to a GOI representative by end May 2017. Upper Tank Farm in Trincomalee will be jointly developed by India (Lanka IOC PLC or LIOC) and Sri Lanka (Ceylon Petroleum corporation or CPC). The Joint Venture (JV) between LIOC and CPC will be set up by end July 2017 and Business Development proposals will be prepared by the JV by September 2017. As part of the Business Development Plans, the JV will prioritize development of 10 tanks in Upper Tank Farm for exclusive use of the Government of Sri Lanka. The land of the Upper Tank Farm, which is currently in possession of Lanka IOC PLC, pursuant to the 2003 Agreement, will be leased to the JV through Lanka IOC PLC. The land of the Lower Tank Farm, which is also in possession of Lanka IOC PLC, pursuant to the 2003 Agreement, will be leased to Lanka IOC directly. The period of all the leases will be 50 years, extendable up to a maximum of 99 years by mutual consent. A Port, Petroleum Refinery and other industries in Trincomalee, for which GOSL and GOI will set up a JWG by end June 2017. Industrial Zones/Special Economic Zones in identified locations in Sri Lanka, details of which will be submitted by GOSL to GOI starting May 2017.Roads in Sri Lanka including MannarJaffna and Mannar-Trincomalee Highways and DambullaTrincomalee Expressway under Indian investments, to facilitate which GOSL will submit to GOI by end June 2017 a list of road projects to be considered for joint development. The railway sector development in Sri Lanka including new projects of track upgradation and purchase of rolling stock, for which GOSL will submit to GOI a list of railway projects to be considered by end June 2017. A Container Terminal in Colombo Port as a Joint Venture, which includes Indian investments considering that majority of transshipment in Colombo Port is related to India. GOSL will announce the award of the contract in this regard by end May 2017.Agricultural sector and livestock development in Sri Lanka including through techno-economic cooperation, water management and promotion of agro-based industries, to facilitate which the Ministry of Agriculture and Farmers’ Welfare of India and the Ministry of Agriculture & Ministry of Rural Economic Affairs of Sri Lanka will hold discussions and bring out a Concept Paper by end June 2017. Any other areas mutually agreed between the Parties. ARTICLE III FOCAL POINTS

The Ministry of Development Strategies and International Trade of the Democratic Socialist Republic of Sri Lanka and the Ministry of External Affairs of the Republic of India shall act as the focal points for effective implementation of the MoU. ARTICLE IV AMENDMENTS

This MoU may be amended, or supplemented in writing by mutual agreement of the Parties. In witness, whereof, the following representatives duly authorized by their respective Governments, have signed this MoU.Done at New Delhi, on this 26th day of April 2017, in two originals in the English and Hindi languages, both texts been equally authentic. In case of divergence in interpretation, the English text shall prevail.