Sri Lankan President’s Visit to India

 

1. In December 2024, Sri Lankan President Dissanayake visited India for the 1^st time since assuming office and met with the Indian Prime Minister.

1. He requested India to continue its grant assistance to help Sri Lanka address its economic challenges.

Key Outcomes of the Visit

1. Security and defence Cooperation: Sri Lanka assured India that its territory would not pose any threat to Indian interests. India expressed concern over the frequent docking of Chinese ships at Sri Lankan ports.

1. Both leaders emphasized shared security interests and agreed to finalize a defence cooperation agreement.
2. They also stressed ensuring a secure, stable, and free Indian Ocean Region while addressing both traditional and emerging security challenges.
3. India will help strengthening Sri Lanka’s defence capabilities through advanced platforms and joint military exercises as well as improving maritime surveillance, defence training programs, and strategic dialogues.
4. Expanding the Colombo Security Conclave's focus to include maritime security, cyber security, and counter-terrorism efforts.

2. Addressing Tamil Minority Issues: Prime Minister Modi stressed the importance of reconciliation and rebuilding efforts for Sri Lanka's Tamil minorities.

1. He urged the full implementation of Sri Lanka’s Constitution and the holding of provincial council elections.
2. President Dissanayake highlighted national unity, social welfare, and sustainable development initiatives.

3. Economic and Energy Cooperation: India outlined a forward-looking vision centered on investment-driven economic development and enhanced connectivity, including physical, digital, and energy linkages.

1. India decided to convert existing loans into grants for railway signaling systems and the Kankesanthurai port.
2. An additional grant of $20.66 million was provided to settle payments for previously completed projects initially funded through loans or Letters of Credit.
3. Earlier, India provided financial assistance worth $5 billion during Sri Lanka’s economic crisis.
4. Key initiatives include strengthening energy ties through electricity grid interconnection, multi-product petroleum pipelines, solar power projects in Sampur, LNG supplies to sri lankan power plants, etc.
5. Trilateral collaboration between India, Sri Lanka, and the UAE on a petroleum pipeline project.

4. Digital Transformation: Both countries plan to expedite:

1. Sri Lanka Unique Digital Identity (SLUDI) project.
2. Implementation of UPI digital payment systems.
3. Integration of platforms such as Aadhaar, GeM, PM Gati Shakti, and DigiLocker.

5. Training and Capacity Building: India committed to:

1. Rehabilitating Sri Lanka’s railway signaling infrastructure.
2. Offering scholarships to Sri Lankan university students.
3. Training 1,500 Sri Lankan civil servants over the next five years.

6. Educational and Technological Collaboration: The two leaders committed to enhancing cooperation in research and development in areas like agriculture, aquaculture, the digital economy, and health.

1. Both countries will promote collaboration between India’s Start-up India initiative and Sri Lanka’s Information Communication Technology Agency (ICTA) to mentor Sri Lankan start-ups.

7. Connectivity and Tourism: Launch of a ferry service connecting Rameshwaram (India) and Talaimannar (Sri Lanka).

1. Promotion of Ramayana and Buddhist circuits to boost tourism between the two nations.

Significance of Sri Lanka for India

1. Strategic Location: Positioned in the Indian Ocean, Sri Lanka lies along the East-West maritime route that facilitates 2/3^rd of global oil trade and half of container shipments.
2. Economic and Trade Ties: Sri Lanka is among India’s largest trading partners in South Asia, while India is its largest global trade partner.

1. The total trade between India and Sri Lanka reached approximately USD 5.5 billion in FY 2023-24, with India exporting around USD 4.1 billion
2. A Free Trade Agreement (FTA) exists between the two nations, and negotiations are underway for an Economic and Technology Cooperation Agreement (ETCA).
3. Indian infrastructure firms, such as those involved in the Colombo Port West Terminal project, benefit from investment openings in Sri Lanka.
4. India played a pivotal role in securing Sri Lanka’s debt relief under the IMF.

3. Maritime Security: Ports like Hambantota have the potential to become major maritime hubs.

1. Ensuring security of key Sea Lanes of Communication (SLOC) in the Indian Ocean is crucial for India.
2. Collaborative development of ports and logistics hubs at Colombo, Trincomalee, and Kankesanthurai to strengthen regional shipping.
3. Improved transshipment links via Colombo and Hambantota, handling significant cargo for India.

4. Geographical Proximity: Sri Lanka's closeness to India and India's investments in its post-civil war and economic crisis recovery make it a strategic priority.

1. Sri Lanka is also important for India in its ambitions to become a net security provider in the Indian ocean.

5. Peace and Stability: China's growing presence in the Indian Ocean region heightens the need for stability, peace, and security in Sri Lanka.
6. Regional Cooperation: Shared membership in South Asian Association for Regional Cooperation (SAARC), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), and Indian Ocean Rim Association (IORA) underscores Sri Lanka’s importance in India’s "Neighborhood First" policy.

1. Establishment of the Maritime Rescue Coordination Centre (MRCC) with installations across Sri Lanka’s coastline to bolster safety and security.

7. Energy Cooperation: Plans for a high-capacity power grid interconnection to enable electricity trade in the region.

1. A $1.2 billion undersea transmission line project linking India’s power grid to Sri Lanka.

8. Digital Connectivity and Tourism: Implementation of UPI-based digital payments to enhance trade and ease transactions. Sharing India’s Digital Public Infrastructure to suit Sri Lanka’s needs.

1. Promoting religious tourism (e.g., Buddhist circuits) and medical tourism (frequent visits by Sri Lankan patients to Chennai).

Addressing Fisheries Disputes Fishing Rights Conflict: The long-standing dispute over fishing rights around Kachchatheevu Island in the Palk Bay has caused significant tension between India and Sri Lanka. Humanitarian Approach: Both nations have agreed to resolve this issue through a livelihood-focused and humanitarian approach. India’s Developmental Initiatives: India has supported the development of fisheries infrastructure in Sri Lanka, including: Construction of the Point Pedro Fishing Harbour. Rehabilitation of the Karainagar Boatyard. Collaboration in aquaculture projects with Indian assistance.

 

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