By P.K.Balachandran/Daily Mirror Supplement

Colombo, April 4 – When Sri Lankan President Anura Kumara Dissanayake visited New Delhi in December 2024, it was his first foreign trip after taking office. And when Indian Prime Minister Narendra Modi visits Sri Lanka from April 4 to 6, it will be his fourth since assuming office in 2014.

Modi’s last trip to Sri Lanka in 2019 had a great humanitarian significance. It was a gesture of solidarity after the Easter Sunday terrorist attacks in Colombo and other towns that claimed over 200 lives.

It is clear that the ties between the two countries are deep. The bond is rooted in shared civilizational values and contemporary imperatives. In fact, the two countries are described as “civilizational twins.”

On April 5, Modi and Dissanayake will review progress on initiatives outlined in the “Joint Vision for Fostering Partnerships for a Shared Future,” adopted during Dissanayake’s December 2024 visit. Several Memoranda of Understanding (MoUs) will be exchanged, spanning energy connectivity, digitization, defence cooperation, health, and multi-sectoral aid.

Energy Cooperation

The leaders will virtually launch a solar energy project in Sampur, in Trincomalee district in Eastern Sri Lanka, signalling India’s role in supporting Sri Lanka’s recovery from its 2022-23 economic crisis and its pursuit of sustainable growth.

In fact, energy cooperation is poised to be a cornerstone of this partnership. India already bolsters Sri Lanka’s energy security through the Lanka Indian Oil Corporation (LIOC), and discussions on additional energy projects are underway.

Visit to Anuradhapura

In recognition of the fact that Buddhism has been the bedrock of the relationship between India and Sri Lanka, Prime Minister Modi would be travelling to Anuradhapura on April 6 along with President Dissanayake to worship at the Bodi tree gifted to Sri Lanka by Indian Emperor Ashoka way back in 236 BC.

The secular aspect of the visit to Anuradhapura will be the inauguration of several India-funded projects in Northern Sri Lanka blending spiritual ties with practical collaboration.

Neighbourhood First Policy

Sri Lanka is a linchpin of India’s “Neighbourhood First” policy, built on mutual trust and goodwill. Indian Foreign Secretary Vikram Misri emphasized this commitment on March 28, noting India’s US$ 4.5 billion aid package during Sri Lanka’s 2022 economic crisis.

“India stepped up its role as a dependable neighbour and first responder,” Misri said, highlighting its role in Sri Lanka’s financial stabilization.

“India was glad to be able to play a key role in the economic stabilization and recovery of Sri Lanka, thereby demonstrating its commitment as a dependable neighbour, indeed as the First Responder in any crisis in the region,” he added.

Nagging Fishermen’s Issue

The Indian Foreign Secretary touched upon the nagging fishermen’s issue and said: “India’s central message has always been that these are issues that should be seen from the humanitarian and the livelihood concerns angle. There are agreements that have been arrived at from time to time between Indian and Sri Lankan authorities on how to handle this issue. There is also a formal mechanism as well of a joint working group on fisheries between the two sides. I think the most recent meeting was held in October last year. There is also a mechanism for fishermen’s associations from the two sides to work together.”

Looking at the future, Misri said: “Our effort is to continue to search a mutual agreement on these issues. We have always focused on the need to avoid the use of force under all circumstances.”

Strong Economic Foundation

Economic relations have given India-Sri Lanka ties a strong foundation. India is among Sri Lanka’s top trade partners, with bilateral trade reaching US$ 5.54 billion in 2023-24. India’s exports amount to US$ 4.11 billion and Sri Lanka’s US$ 1.42 billion. Between April and November 2024, trade totalled US$ 3.67 billion.

Negotiations for the Economic and Technology Cooperation Agreement (ETCA), resumed in October 2023 after a five-year hiatus. The 14 th, round of talks on ETCA was last held in July 2024.

India’s Foreign Direct Investment (FDI) in Sri Lanka stood at US$ 2.25 billion through 2023, with U$ 198.1 million in 2023 alone and US$ 80.55 million from January to September 2024. Key sectors covered by Indian FDI include energy, hospitality, real estate, manufacturing, telecom, and finance.

Energy, Road and Sea Connectivity 

Several connectivity projects are on the anvil. Under discussion are an Economic Land Corridor linking Trincomalee and Colombo, a multi-product pipeline with UAE participation, and a power grid interconnection.

India has also committed U$ 61.5 million to develop Kankesanthurai port in Jaffna, alongside plans for ferry services between Rameswaram and Talaimannar. Money will be spent also on upgrading facilities in Rameswaram and Talaimannar.

Adani Wind Power Project

Uncertainty clouds the U$ 1 billion 484 MW Adani wind power project in Mannar, in northern Sri Lanka. The tariff approved under the previous government was US$ 0.826 per kilowatt-hour, but this  faced legal challenges from local groups seeking reductions.

The Dissanayake administration has pushed for a lower rate, but Adani insists that the already agreed tariff is based on its huge investment of US$ 1 billion.

If the project is stalled, Sri Lanka risks losing significant FDI and jeopardizing its goal of 70% renewable energy by 2030 and net zero by 2050. Whether the Adani plant will feature in Modi’s talks remains unclear.

New Defence Agreement  

In his March 28 press conference in New Delhi, Foreign Secretary Misri announced that a new defence cooperation agreement will be  signed during Modi’s visit.

To quote from the Indian External Affairs Ministry website, the Foreign Secretary said: “If I am not mistaken, we are working on a new agreement on defence cooperation with Sri Lanka and we very much hope that that can be concluded during this particular visit.”

Drafted after President Dissanayake’s December trip to India, and recently refined, the agreement aims to deepen defence ties amid India’s concerns over China’s growing presence in the Indian Ocean, sources said.

Building on annual defence dialogues, naval exchanges, and joint exercises, the agreement is expected to provide Sri Lanka with defence assets and enhance collaboration in maritime surveillance and counter-terrorism.

New Delhi’s troubled intervention in Sri Lanka’s civil war, in the form of the Indian Peace Keeping Force that was deployed in the island nation between July 1987 and March 1990, had a negative impact on bilateral defence cooperation in subsequent years.

However, bilateral security ties gained impetus more recently, leading to the proposed agreement.

A joint statement issued during Dissanayake’s visit last December had said the Indian side would provide defence platforms and assets to augment Sri Lanka’s military capabilities, that the two countries will intensify collaboration through joint exercises and maritime surveillance.

The two sides currently have an annual defence dialogue between Defence Secretaries, and naval interactions and ship visits from India to Sri Lanka. There are annual bilateral exercises between the navies and armies. The new agreement will expand the scope of exchanges and exercises, it is said.

Sri Lanka is India’s closest maritime neighbour, therefore, President Dissanayake reiterated in 2024, that Sri Lanka would not permit its territory to be used in any manner inimical to the security of India and regional stability.

END