Recently the Sri Lankan President Anura Kumara Dissanayake’s visited India as part of his first international trip since assuming office. The visit, which took place from December 15 to 17, 2024, focused on various key areas including economic cooperation, energy security, and regional stability. The visit has yielded significant outcomes, which aims at strengthening bilateral relations between the two countries. India Sri-Lanka Relations
| Key Outcomes of the Visit 1. Economic Cooperation- The Sri Lankan president expressed his gratitude for India’s substantial financial assistance aimed stabilizing Sri Lanka’s economy following its severe financial crisis in 2022. The establishment of an electricity grid connection and a multi-product petroleum pipeline between India and Sri Lanka, was also discussed. 2. Defense and Security Commitments- Dissanayake in a joint statement assured Prime Minister Modi that Sri Lanka would not allow its territory to be used in any manner that could threaten India’s security. This commitment is particularly significant given the rising concerns over China’s influence in the region. 3. Development Projects- Several development initiatives were announced, such as the Indian Housing Project and renewable energy projects tailored for the Tamil community in Sri Lanka, and India’s assistance in training 1,500 Sri Lankan civil servants over five years. 4. Regional Stability- The discussions also reaffirmed mutual interests in fostering regional security through platforms like the Colombo Security Conclave. |
What has been the history of relationship between India and Sri Lanka?
| Ancient Ties and Cultural Relations | India and Sri Lanka have a shared legacy of historical, cultural, religious, spiritual and linguistic ties that is more than 2,500 years old. Buddhism is one of the strongest pillars connecting the two nations and civilizations from the time of the Great Indian Emperor Ashoka. |
| Civil War and Indian Intervention | Relations between India and Sri Lanka began to sour in the 1980s due to the Sri Lankan Civil War. The war primarily involved the Liberation Tigers of Tamil Eelam (LTTE). |
| Indo-Sri Lankan Accord (1987) | In an effort to resolve the conflict, India signed the Indo-Sri Lankan Accord with Sri Lanka, which aimed to provide regional autonomy to Tamil areas. This included deployment of the Indian Peace Keeping Force (IPKF) to maintain peace. However, this intervention faced significant backlash and ultimately led to India’s withdrawal in 1990 after considerable military engagement and casualties. |
| Post-Civil War Relations | After the end of the civil war in 2009, India played a crucial role in reconstruction efforts in Sri Lanka. However, tensions resurfaced due to India’s stance on human rights violations during the civil war and the subsequent UN resolutions. |
India’s help during the recent economic crisis in Sri Lanka
During Sri Lanka’s severe economic crisis in 2022, India played a crucial role in providing substantial support. India extended a credit support amounting to approximately $4 billion.
Credit Lines and Currency Support- India also extended $400 million currency swap and deferrals on trade liabilities worth about $500 million due to imports from India.
India’s support during Debt restructuring- India was the first country to provide a letter of support for Sri Lanka’s debt restructuring to the International Monetary Fund (IMF), facilitating the start of the IMF process.
Humanitarian Aid- The humanitarian aid included the essential goods and services aimed at alleviating the immediate hardships faced by the Sri Lankan population.
All this good will and radically improved India’s bargaining power with Sri Lanka. India’s efforts had also resulted in some tangible outcomes-
a. India signed a deal with Sri Lanka to develop Trincomalee oil tank farm.
b. India’s National Thermal Power Corporation is also going to develop a 100-megawatt power plant in Sampur, a strategic point at the Trincomalee’s natural harbour.
c. Sri Lanka cancelled a Chinese company’s licence to build a micro electricity grid close to India.
What is the importance of Sri-Lanka for India?
1. Strategic location- Sri Lanka is strategically located in the Indian Ocean. The East-West maritime route passing around the island state carries around two-thirds of the world’s oil and half of the world’s container transportation.
2. Maritime security- Sri Lanka is home to ports that have the potential to become important maritime hubs (Hambantota Port) and securing the strategic Sea Lanes of Communication in the Indian Ocean.
3. Geographical proximity to India- Sri Lanka is located very close to India. Moreover, India has invested heavily in Sri Lanka after the end of the civil war in 2009, and after the unprecedented economic crisis in 2022. Hence, it wants to safeguard its strategic interest.
4. Maintenance of stability, peace, and security- The recent rising aggressive footprint of China in the Indian Ocean region makes Sri Lanka even more significant in terms of maintenance of stability, peace, and security.
What have been the other positive developments in India-Sri Lanka Relations?
1. Commercial Relations- India and Sri Lanka enjoy a vibrant and growing economic and commercial partnership, which has witnessed considerable expansion over the years.
a. India-Sri Lanka Free Trade Agreement (ISFTA)- India-Sri Lanka Free Trade Agreement (ISFTA) in 2000 has contributed significantly towards the expansion of trade between the two countries.
b. Bilateral trade- India was Sri Lanka’s largest trading partner, with an overall bilateral trade of USD 5.5 billion in 2022.
c. FDI Investment from India- India is also one of the largest contributors to Foreign Direct Investment in Sri Lanka. According to the Central bank of Sri Lanka, the total FDI from India so far exceeds US$ 2.2 billion.
2. Development Cooperation- Sri Lanka is one of India’s major development partners and this partnership has been an important pillar of bilateral ties between the two countries over the years.
a. Grant commitments- The overall commitment by India is more than USD 3.5 billion. Grant projects cut across sectors such as education, health, livelihood, housing, industrial development etc.
b. Demand driven development partnership- Demand-driven and people-centric nature of India’s development partnership with Sri Lanka have been the cornerstone of this relationship.
3. Cooperation in Maritime Security-
a. Joint Exercises- The SLINEX naval exercises have become one of the most visible manifestations of Indo-Sri Lanka cooperation in maritime security.
b. Partnership in regional maritime security architecture- Sri Lanka is a part of India’s regional maritime security architecture, with Sri Lankan coastal surveillance radars being integrated to the International Fusion Center – Indian Ocean Region (IFC-IOR) at Gurugram in India.
What are India’s concerns with Sri-Lanka?
1. Rising Chinese Footprint- China is spreading its tentacles in Sri Lanka by bagging the project to develop an airport in capital Colombo. India remains concerned due to lack of a level playing field for economic projects in Sri Lanka, with the Sri Lankan government at times openly siding with the Chinese.
2. India’s security concerns- The regular movement of Chinese naval vessels, particularly submarines and the so-called research ships, is a matter of grave security concern to India.
3. Safeguarding India’s strategic interests- The environmental groups, which are an important part of the NPP, have demanded the scrapping of the Adani group backed renewable energy project. India is concerned about protecting its strategic interest in the island nation, especially after giving millions of rupees in aid and loan to Sri Lanka.
4. Exclusion of minority groups- India is concerned regarding the exclusion of Tamils and Muslims from the governance structure of the newly formed government.
5. Fishing disputes- Despite reaching an agreement 47 years ago through the 1974 Indo-Lanka Maritime Boundary Agreement, India and Sri Lanka have not yet resolved their maritime disputes, like Katchatheevu Island dispute. Indian fishermen continue to cross the maritime border into Sri Lanka in the Palk Strait, resulting in encounters with the Sri Lankan Navy, leading to tensions and assaults.
6. Tamil issue- There is concern regarding Sri Lanka’s lack of measurable progress in fulfilling its commitment to finding a political solution to the Tamil issue. The Tamil community in Sri Lanka has been demanding the implementation of the 13th Amendment that provides for devolution of power to it.
What Should be the Way Forward?
1. Addressal of India’s security concerns- India’s security concerns must be taken care of and the newly elected Sri Lankan government must take care that the China does not disrupt Indian shipping movements or use visits to Sri Lanka for spying on India.
2. Use of Diplomatic Skills- India should use its diplomatic skills to ensure that a power project awarded to Adani Energy in northern Sri Lanka is not reviewed.
3. Wait and Watch Policy- India must follow a wait and watch policy like done in the case of Maldives, and should refrain from hasty diplomatic decisions and rush.
4. Operate within the established framework- India’s relationship with Sri Lanka is framed within India’s ‘Neighbourhood First‘ policy and ‘SAGAR‘ framework. Both the nations, must aim to work within the laid down framework.
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