PM Modi Visit to Sri Lanka

Syllabus: GS2/ International Relations

Context

• Prime Minister Modi, during his visit to Sri Lanka, held a significant meeting with Sri Lankan President Anura Dissanayake in Colombo.

Key Outcomes of the Meeting

• PM Modi was conferred ‘Mithra Vibhushana’ the country’s highest civilian honour medal by the Government of Sri Lanka.
• Energy Cooperation: Both the nations inked an agreement to develop Trincomalee as an energy hub and jointly inaugurated the Sampur solar power project, aimed at boosting Sri Lanka’s clean energy capacity.
  • A grid interconnectivity deal was also signed, opening the door for Sri Lanka to potentially export electricity to India in the future.
• Railway Connectivity: An upgraded northern railway line between Maho and Omanthai, enhancing connectivity between the North Central and Northern Provinces was jointly inaugurated, along with an upgraded railway signalling system at Anuradhapura railway station.
• Comprehensive MoU on defence cooperation: The umbrella agreement consolidates various existing defence-related understandings into a coherent framework, enabling structured dialogue.

India and Sri Lanka Relations

• Trade Relations: India-Sri Lanka Free Trade Agreement (ISFTA) in 2000 contributed significantly towards the expansion of trade between the two countries.
  • India has traditionally been among Sri Lanka’s largest trade partners and Sri Lanka remains among the largest trade partners of India in the SAARC.
  • India is also one of the largest contributors to Foreign Direct Investment in Sri Lanka. 
• Cultural relations: The Cultural Cooperation Agreement signed in 1977 forms the basis for periodic Cultural Exchange Programmes between the two countries.
  • The Buddhist and Tamil links enhance people-to-people connect and soft power.
• Tourism: India has traditionally been Sri Lanka’s top inbound tourism market, followed by China.
  • As per latest data from the Sri Lanka Tourism Development Authority, India is the largest source for tourists in 2023.
• Maritime Security and Defence Cooperation: In 2011, a decision was taken to establish the Colombo Security Conclave which aims to further promote maritime security in the Indian Ocean Region.
  • India and Sri Lanka conduct a joint Military exercise named  ‘Mitra Shakti’, Trilateral Maritime Exercise “Dosti”, and a Naval exercise named SLINEX.  
• Multilateral Forum Collaboration: India and Sri Lanka are member nations of the South Asian Association for Regional Cooperation (SAARC), South Asia Co-operative Environment Programme, South Asian Economic Union and BIMSTEC, working to enhance cultural and commercial ties.

Areas of Concern

• The Fishermen Issue: Sri Lanka’s proximity to Indian territorial waters has often blurred the line for fishermen on both sides in pursuit of fish stock.
• Rise of China: China’s increasing strategic investments in vital maritime ports in the IOR  has been an area of concern.
  • Strategic infrastructure projects like Hambantota Port, leased to China for 99 years.
• Trade and Economic Imbalances: CEPA (Comprehensive Economic Partnership Agreement) talks stalled.
• Slow Progress in Development Projects: Indian-funded projects like Jaffna Cultural Centre, Trincomalee Oil Tank Farm, and housing schemes face bureaucratic delays.
• Internal Instability in Sri Lanka: 2022 economic crisis led to massive unrest which caused a spillover effect on the Tamil Nadu coast and refugee inflow.

Way Ahead

• India–Sri Lanka relations, rooted in geography and history, must now evolve through shared economic prosperity, strategic cooperation, and people-centric development.
• The strengthened ties between both the nations will ensure mutual growth and regional stability in line with India’s Neighbourhood First and SAGAR visions.

Source: TH