India-Sri Lanka Bilateral Cooperation: Key Highlights

Context:

Recently, Sri Lankan President Anura Kumara Dissanayake held bilateral talks with India's Prime Minister during a three-day visit to India.

Political Significance

• This visit highlights the strength of India-Sri Lanka relations, as it marks Mr. Dissanayake’s first foreign trip after becoming President.
• The Ministry of External Affairs released the "India-Sri Lanka Joint Statement: Fostering Partnerships for a Shared Future."

Key Outcomes of the Visit

1. Strategic & Defence Cooperation

• Strengthened SAGAR Vision: Supports Security and Growth for All in the Region and India’s Neighbourhood First policy.
• Countering China: Helps contain China's growing presence in the Indian Ocean, including cases like the docking of Chinese ships at Hambantota Port.
• Provision of a Dornier aircraft to Sri Lanka for maritime surveillance.

2. Energy Cooperation

• Electricity Grid Connectivity: Establishing a grid and a multi-product petroleum pipeline between the two nations.
• Implementation of the solar power project in Sampur, with plans to enhance capacity as per Sri Lankan requirements.

3. Economic & Development Cooperation

• Example Projects:
  • Indian Housing Project (Phases III & IV).
  • Hybrid Renewable Energy Projects on three islands.
  • High-Impact Community Development Projects across Sri Lanka.
• Debt Restructuring:
  • Emergency financing and $4 billion forex support from India to stabilize Sri Lanka’s economy.

4. Cultural & Tourism Development

• Resumption of flights between Chennai and Jaffna.
• Discussion on the Ramayana Circuit and Buddhist Circuit to boost tourism.
• Launching a ferry service between Rameshwaram and Talaimannar to enhance connectivity.

5. Digital Infrastructure

• Expedited implementation of the Sri Lanka Unique Digital Identity (SLUDI) Project.
• Expansion of UPI digital payments to promote financial transactions across borders.

6. Training & Capacity Building

• Agreed to train 1,500 Sri Lankan civil servants across ministries over five years.

7. Fishermen Issues

• Acknowledged livelihood challenges faced by fishermen on both sides and emphasized a humanitarian approach to resolve disputes.

India’s Role in Sri Lanka’s Economic Crisis

• Humanitarian Assistance: Extended $4 billion in aid during Sri Lanka’s 2022 crisis for fuel, food, and essential imports.
• Loan Assistance: Provided short-term loans and facilitated IMF negotiations to support Sri Lanka’s economic recovery.

Strategic Importance of Sri Lanka for India

• Indian Ocean Security: Sri Lanka’s location is vital for maritime security, especially to counter China’s influence.
  • Example: Concerns over Hambantota Port, leased to China.
• Defence Cooperation: Agreed to explore a framework agreement for joint exercises, maritime surveillance, and defence dialogues.

Challenges in India-Sri Lanka Relations

• Tamil Issue: India advocates the full implementation of the 13th Amendment to ensure Tamil autonomy through Provincial Councils.
• Chinese Influence: Docking of Chinese military vessels in Sri Lankan ports raises security concerns.
• Fishermen Disputes: Frequent clashes and arrests over poaching in shared waters.

Path Ahead

1. Economic Integration: Finalize the Comprehensive Economic Partnership Agreement (CEPA) to boost trade and investment.
2. Strategic Challenges: Strengthen maritime partnerships to counterbalance China.
3. Tamil Reconciliation: Collaborate to expedite devolution and improve living conditions for Tamils.
4. Sustainable Energy: Expand renewable energy projects for mutual benefits.

Conclusion

India-Sri Lanka relations, deeply rooted in history and geography, present opportunities for economic, cultural, and strategic cooperation. Addressing challenges through an inclusive and balanced approach will ensure a strong partnership in the Indian Ocean Region.