tsunami on 26 December 2004. Teams of naval and army officers, ships and aircraft provia continuous µbridge' of assistance in fields such as search and rescue, provisioessential items, repair of damaged infrastructure, health, clearing of harbourspsychological counseling and reached into affected areas in the North, East and the SoThe Prime Minister has announced a grant of Indian Rupees 100 crores for tsunami relrehabilitation projects in Sri Lanka. Health, transport infrastructure, livelihood activityexchange of µsoft skills' on disaster management are the focus of Indian assistancpost-tsunami reconstruction.6. Today while not being directly involved in the peace process, India consults closelythe Government of Sri Lanka, the facilitators (Norway) and different strands of democopinion in Sri Lanka, including on Sri Lanka's efforts to build a national consensusnegotiated solution within a united Sri Lanka and on the basis of maximum devolution. Istands ready to share with Sri Lanka her own experience of unity in diversity, pldemocracy and devolution. India is also one with Sri Lanka in rejecting war and conflictin opposing terrorism, which constitutes the biggest threat to democratic societies todayEconomic and Development Cooperation
7. Since the entry into force of the FTA in M2000, trade has grown rapidly. Bilateral trade exceeded US $ 1.7 billion in 2004 and rosUS $ 2.025 b in 2005. Exports from India to Sri Lanka in 2004 amounted to US$ 1350 millwhile exports from Sri Lanka to India in the same year amounted to US$ 382 million. Tfigures were US $ 1.437 b and US $ 588 m respectively in 2005. The FTA prompted a 25increase in bilateral trade between 2001 and 2004. At 15% of the total, India is the bigsource of Sri Lankan imports. It is also the 3rd largest destination for Sri Lankan expWith FDI approvals of US $ 450 million, India is the 4th largest investor in Sri Lanka. InOil Corporation, Taj Hotels, Apollo Hospitals, L & T, Ambujas, Tatas and Ashok Leylandamong the prominent Indian companies operating in Sri Lanka. Connectivity betweentwo countries is at an all time high with approximately 100 flights per week, includinIndian private airlines, to and from 10 destinations in India.
8. India is active in a nuof areas of development activity in Sri Lanka. About one-sixth of the total developcredit granted by Government of India is made available to Sri Lanka. At present two linecredit are operational. These are a US $ 100 million line for capital goods, consudurables, consultancy services and food items and a US $ 31 million line of credit for suof 300,000 tonnes of wheat. A US $ 150 million line of credit for purchase of petrolproducts is operational as of March 2005. Another one of US $ 100 million, earlier slatedrural infrastructure projects including a road between Anuradhapura and Trincomalee tnamed the Rajiv Gandhi Amity Highway, is now being made available for post-tsurehabilitation of the coastal railway line. Besides ITEC scholarships (70 slots annually),of Colombo Plan (50 slots) and BIMSTEC (30 slots), India also contributes to the Ce