- Sri Lanka signed an agreement with India to build 1,200 houses in the southern coastal port city of Hambantota, Sri Lanka.
- Under the signed MoU, out of the 1,200 houses to be built, 600 will be constructed in the Southern Province, while the remaining would be built across Sri Lanka, through one model village in each of the country’s 25 districts.
Significance of the MoU:
- The signing of the MoU in Hambantota assumes significance not only in its timing, but also in taking India’s housing project to the Sinhala-majority Southern Province.
- India has been taking steps to protect itself in the Indian Ocean by allying itself with the United States and Japan in a clear bid to counter growing Chinese influence.
- Hambantota is the main town in Hambantota District, Southern Province, Sri Lanka.
- Hambantota is right in the middle of vital energy supply lines in the Indian Ocean, connecting the Middle East and East Asia.
- This underdeveloped area was hit hard by the 2004 Indian Ocean tsunami and is underwent a number of major development projects including the construction of a new sea port and international airport.