With the cessation of hostilities in northern Sri Lanka, India and Sri Lanka have an opportunity to realize the full potential of their bilateral relations. I am heartened to note that, during this visit, we are committing ourselves to substantially enhance the range and depth of our bilateral engagement, stated President of India, Pratibha Patil addressing the Banquet in honour of President Mahinda Rajapaksa yesterday [09 June].

India and Sri Lanka can show the way forward to the region and to the world as a model of mutually beneficial cooperation, President Patil emphasized.

Congratulating President Rajapaksa on the victory at the Presidential and Parliamentary elections, the President of India stressed that it holds out hope that an era of reconciliation will begin, where all communities would come together and forge a permanent settlement addressing all outstanding issues in a spirit of mutual accommodation.

'I am confident that in the coming days, the remaining IDPs will also return to their places of residence to resume their life in peace and security', President Patil stated.

India stands ready to contribute, in any way it can, to assist Sri Lanka in its return to normalcy, she said and added that the visit to Sri Lanka of a group of Members of Parliament from Tamil Nadu last October served to underline this commitment.

Apart from the assistance of Rs.500 crores for the rehabilitation in the north, India is extending about US$ 800 million as Lines of Credit for railway projects. India stated its willingness to contribute to the reconstruction process through support for reviving agriculture, for rebuilding schools, housing and civil infrastructure, for rehabilitating war widows, constructing the Cultural Centre in Jaffna, setting up Vocational Training Centres and restoring the Duriappa Stadium.

President Patil further stated enhanced economic interaction and greater connectivity hold the key to leverage our mutual strengths for the benefit of our peoples and, indeed, the entire region. 'Gains of the India-Sri Lanka Free Trade Agreement should be consolidated. Trade and investments need to be encouraged further', she said.