Sri Lankan President’s India Visit Energizes Relations

The newly elected Sri Lankan President, Anura Kumara Dissanayake (AKD), made his first official overseas visit to India. This visit aimed to discuss various topics such as Indian projects in Sri Lanka, the proposed Comprehensive Economic Partnership Agreement (CEPA), the Tamil issue, and regional security cooperation. It is important because India had been a crucial partner to Sri Lanka during its economic crisis and post-pandemic recovery.

Key-takeaways of the Meeting

• Economic Cooperation:
  • Sri Lanka’s Economic Recovery: Dissanayake expressed deep gratitude for India’s support during Sri Lanka's economic crisis in 2022. India provided USD 4 billion in credit lines and grants, which helped stabilize Sri Lanka’s economy.
  • Continued Support from India: India would continue supporting Sri Lanka’s recovery, focusing on long-term economic cooperation. The leaders agreed to explore new avenues for trade and investment, particularly in sectors like agriculture, dairy, and textiles.
  • Free Trade Agreement (ISFTA): Both countries discussed expanding the India-Sri Lanka Free Trade Agreement (ISFTA) to enhance trade relations. Sri Lanka sees India’s large market as a vital opportunity for its exports.
• Defence and Regional Security:
  • Security Concerns in the Indian Ocean: The leaders discussed the growing security challenges in the Indian Ocean, especially with China’s increasing presence in the region. President Dissanayake assured that Sri Lanka would not allow its territory to be used against India’s security.
  • Maritime Cooperation: Both leaders highlighted the importance of strengthening defence and maritime security cooperation. India has provided Sri Lanka with Offshore Patrol Vessels and helped set up a Maritime Rescue and Coordination Centre to enhance Sri Lanka’s maritime capabilities. Joint efforts between both countries' navies are also tackling narcotics trafficking in the region.
  • Joint Exercises: Both countries agreed to conduct joint military exercises, share intelligence, and collaborate on maritime security.
• Strategic and Economic Cooperation:
  • Infrastructure and Renewable Energy: The leaders agreed to focus on infrastructure development, renewable energy, and digital connectivity between the two countries.
  • Agricultural Modernization: A Joint Working Group will be set up to explore collaboration in modernizing Sri Lanka’s agriculture and promoting sustainable farming practices, including in the dairy sector.
  • Cyber Security and Climate Change: They also discussed cooperation on countering cyber threats and addressing climate change in the region.
• Fishermen’s Issue: The India-Sri Lanka fisherman is a long-standing dispute between the two over fishing rights in the Palk Strait and the Gulf of Mannar. The Palk Strait is a narrow strip of water that separates the state of Tamil Nadu in India from the northern regions of Sri Lanka.

Challenges in Relations:

• Economic Cooperation: India and Sri Lanka have had complex discussions over economic agreements, such as the Free Trade Agreement (FTA) and Comprehensive Economic Cooperation Agreement (CECA). Political resistance in Sri Lanka has slowed progress in these areas.
• China’s Influence: China’s Belt and Road Initiative (BRI) projects, like the Hambantota Port, have become a major competitor to India’s infrastructure efforts in Sri Lanka. Sri Lanka handed over control of Hambantota port to China for 99 years after struggling with debt repayment.
• Tamil Political Issue: The unresolved Tamil political question has been a longstanding issue in Sri Lanka’s domestic politics. President Dissanayake promised to return Tamil lands occupied by state agencies. However, his party, JVP, does not support political devolution for Tamils, which remains a point of contention in the relationship between India and Sri Lanka.