EAM Visit to Sri Lanka

In Context 

• Recently, the Indian External Affairs Minister (EAM) embarked on a bilateral visit to Sri Lanka recently.
  • Six agreements were signed to boost bilateral cooperation in diverse sectors like technology, fisheries and hybrid power projects.
  • They also discussed issues pertaining to fishermen and exchanged views on devolution.

Major Points 

• SL-UDI programme:
  • The MOUs include the implementation of the Sri Lanka Unique Digital Identity (SL-UDI) programme with India’s grant assistance and providing a Maritime Rescue Coordination Centre.
    • Under the terms of the MRCC agreement, a maritime rescue sub-centre will come up at Hambantota, where the Chinese state-owned shipping and logistics company, China Merchants Port Holdings, runs the second-largest Sri Lankan port after Colombo.

• Hybrid Power Projects:
  • There is an MOU on the implementation of Hybrid Power Projects in three Islands off Jaffna and also on cooperation in the development of Fisheries Harbours in Sri Lanka.
• Modern computer labs and smart boards:
  • The two sides signed MoUs for the establishment of modern computer labs and smart boards with customised curriculum software in 200 schools in Galle District and a separate MOU between the Sushma Swaraj Institute of Foreign Service and the Bandaranaike International Diplomatic Training Institute.
• Cultural centre:
  • India also inaugurated a cultural centre in Jaffna, to be run by the local municipality. 
  • The Jaffna Cultural Centre is a glowing example of the India-Sri Lanka development partnership. 

•  State-of-the-art facility:
  • The state-of-the-art facility, constructed with grant assistance from the Indian Government, consists of multiple facilities such as a museum of two floors; an advanced theatre-style auditorium for more than 600 people; an 11-storeyed learning tower; a public square that could also act as an amphitheatre etc

• India will also provide a grant of $15 million for the maintenance of Buddhist sites in Sri Lanka. 

Brief on India – Sri Lanka Relations 

• Historical: 
  • India and Sri Lanka have a legacy of intellectual, cultural, religious and linguistic interaction and the relationship between the two countries are more than 2500 years old. 
• Overview:  
  • Trade and investment have grown and there is cooperation in the fields of development, education, culture and defence.
  •  In recent years, significant progress in the implementation of developmental assistance projects for Internally Displaced Persons (IDPs) and disadvantaged sections of the population in Sri Lanka has helped further cement the bonds of friendship. 
  • The nearly three-decade long armed conflict between Sri Lankan forces and the LTTE came to an end in May 2009. 
    • During the conflict, India supported the right of the Government of Sri Lanka to act against terrorist forces. 

• Political Relations: 

• Political relations between the two countries have been marked by high-level exchanges of visits at regular intervals. 

•  Commercial Relations: 
  • Both countries enjoy a vibrant and growing economic and commercial partnership, which has witnessed considerable expansion over the years. 
  • The entry into force of the India-Sri Lanka Free Trade Agreement (ISFTA) in 2000 contributed significantly to the expansion of trade between the two countries.  
  • In 2020, India was Sri Lanka’s 2nd largest trading partner with the bilateral merchandise trade amounting to about USD 3.6 billion.  
    • India is also one of the largest contributors to Foreign Direct Investment in Sri Lanka.

• Projects under Lines of Credit: 
  • 11 Lines of credit (LOC) have been extended to Sri Lanka by the Export-Import Bank of India in the last 15 years. 
    • Important sectors in which Projects have been executed/ are under execution, under these LOCs include Railway, transport, connectivity, defence, solar.  

• A US$ 100 million LoC for undertaking solar projects in Sri Lanka has been signed between the Government of Sri Lanka and EXIM Bank in June 2021.  

• Cultural relations: 
  • In contemporary times, the Cultural Cooperation Agreement signed by the Government of India and the Government of Sri Lanka in November 1977 forms the basis for periodic Cultural Exchange Programmes between the two countries.  
  • A USD 15 million grant from India for the promotion of bilateral Buddhist ties and an inaugural international flight carrying Sri Lankan pilgrims to the sacred city of Kushinagar, after Kushingar’s recent designation as an international airport, were announced at the Virtual Bilateral Summit (VBS). 

• People-to-people ties: 

• Buddhism is one of the strongest pillars connecting the two nations and civilizations from the time when the Great Indian Emperor Ashoka sent his children Arahat Mahinda and Their Sangamitta to spread the teachings of Lord Buddha at the request of King DevanampiyaTissa of Sri Lanka.  

• Tourism: 
  • Tourism also forms an important link between India and Sri Lanka. The Government of India formally launched the e-Tourist Visa (eTV) scheme for Sri Lankan tourists on 14 April 2015. 

• Human Resource Development: 
  • India now offers about 710 scholarship slots annually to Sri Lankan students. 
  • In addition, under the Indian Technical and Economic Cooperation (ITEC) Program, India offers 402 fully-funded slots every year to officials in various Ministries of Government of Sri Lanka and also to other eligible citizens for short term training programs in a wide variety of technical and professional disciplines to enhance skill sets.
  • Indian institutes under the ‘Study in India’ Program provide technical expertise across a diverse range of courses and include programs in niche disciplines such as Ayurveda, Yoga, and Buddhist Studies. 
• Defence:
  • India and Sri Lanka conduct a joint Military exercise named  ‘Mitra Shakti’ and a Naval exercise named SLINEX.  
• Support during the recent Srilankan crisis: 
  • Sri Lanka is facing an acute economic and energy crisis triggered due to a shortage of foreign exchange. 

• India has provided a $2.4-bn package of financial assistance in February and March. 
• India is also appointing experts to assist Sri Lanka’s economic recovery, and for various joint projects. 
• India extended a $400-million currency swap and a $500-million credit line for fuel purchases to Sri Lanka earlier this year.
• Since January 2022, India has also signed several key bilateral agreements with Sri Lanka, including the joint development of the Trincomalee Oil Tank Farms, and three major power projects in the north and east, involving the National Thermal Power Corporation (NTPC) and the Adani Group, apart from the recent pacts on maritime security.

Issues between the two nations

• 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. 
• 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 is trying “to gain maximum advantage out of this crisis” and is “following up” on the measures that India is announcing
  • China is also pushing Sri Lanka to immediately conclude the China-Sri Lanka free trade agreement (FTA), which the Chinese claim will benefit Colombo’s local market and products.

Way Forward 

• 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 favour 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.
• India is trying to help Sri Lanka tide over the current crisis, it is also ensuring that its interests in terms of the Tamil reconciliation and fishermen issues are effectively addressed.
• We do understand that countries have their own limitations and we have to do domestic arrangements in terms of cost of living adjustments, the balance of payments, currency rate management etc.

Source: IE