I disagree with both views. For one, we all need a stable and peaceful neighbourhood to concentrate on national development. I also believe that countries do better when the entire region moves together. I said at the SAARC Summit that barriers of boundaries inhibit progress; international partnerships give it speed. That is why we see a rising tide of regional integration and cooperation across the world. Our region is rich in resources. We constitute a large market. We complement each other. Therefore, our cooperation can be of huge benefit to all of us. There are already powerful examples in South Asia that show us that difference in size is no constraint to beneficial partnerships, if we use our strengths and seize our opportunities. Bhutan benefits from hydropower exports to India. Nepal has significant manufacturing exports to India – in part driven by Indian investors. Infrastructure, energy, supply chains, traditional handicrafts, modern manufacturing, tourism and services – there are no limits to our possibilities.

I hardly need to tell this informed audience about the transformation unleashed in India over the past ten months. There is new purpose and clarity in our policies; a new vision for inclusive development; new standards in our governance; and, a new level of energy in our economy. Last quarter, India was the fastest growing global economy. We are confident that we can grow even faster. The progress of one-sixth of humanity is a major economic opportunity for the world. The global confidence in India has been restored. The world’s engagement with India is at a new level. But, the first claim on us should be that of India’s neighbours. And, I will be happy if India is a catalyst for economic growth in our own region. That is why I speak of a neighbourhood where trade, investment, ideas and people move easily across the borders. And, as I said in Kathmandu, Nepal, in November, India will do its part for the region. We will work to integrate our markets more. We will make trade smoother and possible through the most direct routes. We will invest in regional connectivity. And, we will share our capabilities in science and technology with South Asia, from advanced medicines to disaster management or space science.

As a friend and neighbor, we attach the highest importance to Sri Lanka’s economic progress. Sri Lanka is a nation of many achievements and great strengths. It has education, skills and enterprise. It has an excellent location. And, it has won peace now. Sri Lankan businesses have shown that they can compete with the best in the world. Our garments and tea industry know that! We are pleased to be Sri Lanka’s largest trading partner and one its largest sources of investment. Our Free Trade Agreement in 2000 was a pioneering initiative in the region. It has given a big boost to our trade. Sri Lanka’s exports to India have grown sixteen times – yes, sixteen times – since then. This is impressive by any standards. I know there are concerns here about the huge trade imbalance. I am prepared to work with you to address them. I want balanced growth in trade. We will try to make it easier and smoother for you to access the Indian market. That is part of my philosophy of ease of doing business in India. Our agreement on Customs cooperation is a step in that direction.

India is opening up to the world. We offer duty free access to Least Developed Countries, including in South Asia. And, India has Free Trade Agreements with ASEAN and others. We should ensure that Sri Lanka does not fall behind in the changing and competitive world. That is why India and Sri Lanka should move boldly to conclude a Comprehensive Economic Partnership Agreement. You should also attract investments from India for exports to India. That should be the natural outcome of our proximity and your strengths. Indian investments can also upgrade and expand your infrastructure. It is also natural that Indian investors are more likely to invest here because of familiarity and proximity. They are already here. And, I know that there are many large commitments in the pipeline. They are looking for your support. During this visit, I am pleased with progress on Sampur Thermal Power Project and the Trincomalee Oil Farm. That is good for Sri Lanka’s energy security and for our partnership.

Sustainable development of the Ocean Economy can be a huge area for cooperation. I also believe that when we connect the lives of people, we strengthen the bonds between nations. We have extended visa on arrival facility to Sri Lanka from April 14. We should do more to connect our countries by air and sea. India and Sri Lanka were, in some ways, better connected in the past than we are now! In the past, a person could buy a rail ticket in Colombo and travel to Chennai by rail and ferry! Air India’s decision to launch direct flight between our capitals will help reverse that trend. Tourism unites people and creates economic opportunities. India is already the biggest source of tourists here. We will work together to increase that flow. In conclusion, let me return to the point I had made at the beginning. India’s progress gives us the ability to create opportunities for our neighbours. Our development partnership has injected commitments of 1.6 billion dollars in assistance from India. That has helped rebuild and upgrade infrastructure in Sri Lanka.
Today, we have offered another Line of Credit of about 318 million dollars for the railways sector. Reserve Bank of India has agreed to provide Central Bank of Sri Lanka a currency swap arrangement for 1.5 billion dollars. This will increase the stability of Sri Lankan Rupee. It is not just in development partnership. We will also be supportive in advancing your commercial interests. I believe in Sri Lanka’s capabilities. We should engage more. We should open up to each other more. We should move forward with greater belief in our own strengths; more trust in each other; and, with more confidence in the fruits of our partnership. As I was saying before, Sri Lanka has the potential to be our most important economic partner in the region. We count on your support to make it happen.

We in this region are on the same journey: to transform the lives of our people. Our path will be easier, the journey quicker and destination nearer when we walk step in step. As I stand here in Colombo and look north towards the Himalaya, I marvel at our region’s uniqueness – of our rich diversity and our common civilisational links. We have been formed from the same elements; and, from our interconnected histories. Today, we stand together as proud independent nations – sovereign and equal. India and Sri Lanka do not have a land boundary, but we are the closest neighbours in every sense. No matter where you look in India or Sri Lanka, the many strands of our links – religion, language, culture, food, customs, traditions and epics – come together into a deep and strong bond of familiarity and friendship.  Ours is a relationship that is beautifully defined by the journey of Mahindra and Sanghamitra. They carried the message of peace, tolerance and friendship more than two millenniums ago.
It is evoked by Kannagi, the central character of the great Tamil epic Silapathikaram, who is worshipped as goddess the Pattini in Sri Lanka. It lives in the Ramayan trail in Sri Lanka. It expresses itself in devotion at the dargah of the Nagore Andavar and the Christian shrine of Velankanni. It is reflected in the friendship of Swami Vivekananda and Anagarika Dharmapala, the founder of the Maha Bodhi Society in Sri Lanka and India. It lives in the work of Mahatma Gandhi’s followers in India and Sri Lanka. Above all, our relationship thrives through the inter-woven lives of ordinary Indians and Sri Lankans. Our independent life began at about the same time. Sri Lanka has made remarkable progress since then. The nation is an inspiration for our region in human development. Sri Lanka is home to enterprise and skill; and extraordinary intellectual heritage. There are businesses of global class here.
Hon’ble Speaker and Distinguished Members,

My vision of an ideal neighbourhood is one in which trade, investments, technology, ideas and people flow easily across borders; when partnerships in the region are formed with the ease of routine. In India, the growth momentum has been restored. India has become the fastest growing major economy in the world. The world sees India as the new frontier of economic opportunity. But, our neighbours should have the first claim on India. And I again repeat, the first claim on India is of our neighbours – of Sri Lanka.
Last month we signed the agreement on cooperation in peaceful uses of nuclear energy. More than anywhere else in the region, I see enormous potential to expand cooperation with Sri Lanka in areas like agriculture, education, health, science and technology, and space. Indeed, we are limited only by our imagination. We hope that Sri Lanka will take full benefit of India’s satellite for the SAARC Region. This should be in Space by December 2016.
I have come with the hope of building this bridge – a bridge that rests on strong pillars of our shared inheritance; of shared values and vision; of mutual support and solidarity; of friendly exchanges and productive cooperation; and, above all, belief in each other and our shared destiny. Thank you once again for the honour to be with you.

In his message the Prime Minister said “On Air Force Day, I salute our air force personnel. They are our pride and their bravery, commitment and dedication continues to inspire,”.
The nation takes pride in the many exploits of our Air Force and looks forward to its further growth as a modern strategic force.