Bilateral Engagement between India and Sri Lanka

In Context

• Recently, India and Srilanka’s foreign Minister met as part of the ongoing high-level, and increasingly frequent, bilateral engagement.

Major Intiatives to strengthen bilateral engagement.

• The relief extended by India from the beginning of 2022 totals over $1.4 billion
  • Sri Lanka is further negotiating a $1 billion assistance from India to help the near 22 million-strong country as it faces an unprecedented economic crisis.
• Four pillars of co-operation: In December 2021, both the countries agreed on “four pillars of co-operation” for the short term. These are 
  • Emergency support for food and medicine, and that is a $1-billion credit line.
  • Providing help for petroleum supply, a line of credit of $500 million was announced and to collaborate with India on the Trincomalee tank farm and look at how both countries could work together for energy security and storage. 
  •  India supported by giving a deferral of two months on dues to the Asian Clearing Union, and that was $500 million, and the other was a $400-million swap. 
  • It focused on investment and tourism as India is Srilanka’s largest tourism market — 20-25 per cent of our tourists came from India before the pandemic.
• Unitary Digital Identity framework:  India has agreed to provide a grant to Sri Lanka to implement a ‘Unitary Digital Identity framework’, apparently modelled on the Aadhaar card. 
• Supply of two Dornier aircraft 
  • Both the countries are discussing a proposal for the supply of two Dornier aircraft for the Sri Lankan military.

• The Dornier is a twin-engine multi-purpose aircraft, used by the Indian Navy and Coast Guard for maritime surveillance.
  •  It is also used by the Indian Air Force. It is manufactured by Hindustan Aeronautics Ltd under licence from Swiss company RUAG and is a showpiece of the government’s “Make In India” programme.

• Finalisation of  memorandum of understanding
  • Both were looking to finalise more immediately a memorandum of understanding on an Indian $15-million fund for the refurbishment of Buddhist temples, and another agreement on collaboration between the Sushma Swaraj Institute of Foreign Service and the Colombo-based Bandaranaike International Diplomatic Training Institute. 

Sources of tension 

• The main sources of tension between the countries include the sudden cancellation of the 2019 agreement to jointly develop the East Container Terminal in Colombo along with Japan,
  • However, Colombo soon offered what it called a “compromise deal” to India, roping in the Adani Group as the main investor in a neighbouring West Container Terminal.
• Fishermen issue: Given the proximity of the territorial waters of both countries, especially in the Palk Straits and the Gulf of Mannar, incidents of straying of fishermen are common. 
  • Bilateral talks between governments and fisher leaders have proved unsuccessful so far, with Tamil Nadu fishermen reluctant to move away from the practice of bottom trawling that yields high profits.
• China’s increasing closeness to Sri Lanka is a matter of concern for India. It poses a threat to India’s regional security concerns.
  • China also provided about 80% of the vaccines administered by Sri Lanka, where about 65% of the population is fully vaccinated. 

What needs to be done?

• The need for national reconciliation through a political settlement of the ethnic issue has been reiterated by India at the highest levels. 
• India is in favor of a negotiated political settlement, which is acceptable to all communities within the framework of a united Sri Lanka and which is consistent with democracy, pluralism and respect for human rights. 
• The Indian Government should ensure assistance to the states so that fishermen can find alternative livelihoods to fishing in Palk Bay.
• Sri Lanka and India are looking at “closer integration” of their economies in sectors such as ports, energy, tourism and hospitality, and pharmaceuticals.
• Sri Lanka and India were now seeking to “transform the character of the relationship, elevating it from a transactional level to strategic partnership”.
• The two sides were planning a joint working group during the visit by Jaishankar in the second half of March 2022, which would include the two foreign ministers, the two fisheries ministers, and possibly some representation from Tamil Nadu.

Source: TH