India needs to learn lessons on fiscal prudence: Jaishankar at all-party meet on Lanka crisis

At an all-party meeting convened by the Prime Minister Narendra Modi-led government over the Sri Lankan crisis, the members were informed that India needs to learn its lessons on fiscal prudence and good governance, and make sure that the country doesn’t slide into a similar path.

The meeting was attended by 28 political parties, including the Congress and the Left parties.

Addressing the reporters after the conclusion of the meeting on Tuesday, External Affairs Minister S Jaishankar said that India should also shun "a culture of freebies", while dismissing suggestions about such a situation arising in India.

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"Lessons of Sri Lanka are very very strong. They are of fiscal prudence, responsible governance and that there should not be a culture of freebies."

"The reason we took the initiative to request you all to join an all-party meeting was...This is a very serious crisis and what we are seeing in Sri Lanka is in many ways an unprecedented situation," Jaishankar said in his initial remarks at the meeting.

"It is a matter which pertains to a very close neighbour and given the near proximity, we naturally worry about the consequences, the spillover it has for us," he added.

Later, talking to reporters, Jaishankar said longstanding issues such as those related to fishermen also came up during the meeting.

According to PTI news agency, two presentations were made at the meeting —one by Foreign Secretary Vinay Mohan Kwatra on the Sri Lankan crisis and its political implications and another by Economic Affairs Secretary Ajay Seth on the fiscal health of all the Indian states.

"We do not think that a Sri Lanka-like situation can arise in India. But there was a logic to what we were trying to do, we were trying to highlight the importance of fiscal prudence. So, it was not that we highlighted one or two states, we had almost every state. There was no political intent in this," Jaishankar said about the presentation on the states' fiscal health.

The minister told the reporters that the leaders were informed of the support extended by India to Sri Lanka since January and that it has so far reached to US $3.8 billion.

"No country has given this level of support to Sri Lanka and the initiative that we are taking to help them facilitate their engagement with others such as the IMF," he said.

From the government's side, eight ministers attended the meeting, including Parliamentary Affairs Minister Pralhad Joshi and Minister of Fisheries Parshottam Rupala.

Jaishankar also brushed aside "misinformed comparisons" between India and Sri Lanka, saying that some people have asked whether "such a situation can happen in India".

"So, what we have done is we have asked the finance ministry to make a presentation and brought out a state-wise revenue-to-expenses comparison...Unpaid dues of discoms," he said.

The external affairs minister asserted that it was a very open discussion with the leaders of all political parties speaking their mind.

(With inputs from agencies)

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