India-Sri Lanka Relations

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India-Sri Lanka Relations

Context:

Sri Lankan President Anura Kumara Dissanayake will visit India from December 15 to 17, 2024, marking his first state visit abroad since assuming office in September. 

More on News

  • The President Dissanayake is set to meet Indian President Droupadi Murmu and hold bilateral discussions with Prime Minister Narendra Modi and other senior officials on various issues of mutual interest. 
  • Additionally, he will attend a business event aimed at enhancing investment and commercial ties between the two nations and visit Bodh Gaya as part of his itinerary.

India-Sri Lanka Relations

  • Historical Ties: Deep connections in culture, religion, and trade.
    • Buddhism and Indian ancestry have significant cultural influences.
  • Economic Cooperation: 
    • Financial Assistance: India provided USD 4 billion in aid during Sri Lanka’s 2022 financial crisis and supported debt restructuring with the IMF.
    • UPI Integration: Sri Lanka adopted India’s UPI service, enhancing fintech connectivity.
    • Currency Trade Settlement: Use of the Indian rupee for trade has supported Sri Lanka’s economy.
    • Trade Relations: India is a key export destination, benefiting from the India-Sri Lanka Free Trade Agreement.
  • Tourism: India was the largest source of tourists to Sri Lanka in 2022, contributing over 100,000 visitors.
  • Regional and Multilateral Participation: Collaboration through BIMSTEC and SAARC, where India plays a leading role.

LTTE and India

The LTTE, founded in 1976 by Velupillai Prabhakaran, sought an independent Tamil state (“Tamil Eelam”) in Sri Lanka in response to systemic discrimination against Tamils. Initially supported by India in the 1980s through arms, training, and financial aid via RAW, the relationship shifted with India’s military intervention in 1987 under the Indo-Sri Lanka Accord, deploying the IPKF to stabilise the region and disarm militants—a move that faced strong LTTE resistance. Relations deteriorated after the LTTE assassinated former Indian Prime Minister Rajiv Gandhi in 1991, leading India to designate the LTTE as a terrorist organisation in 1992. Following the LTTE’s defeat in 2009, India has focused on aiding Sri Lanka’s post-war reconstruction and reconciliation efforts, while avoiding direct involvement in its internal conflicts.

Challenges in Bilateral Relations

  • Tamil Ethnic Issue: Concerns over the welfare of Tamils in Sri Lanka and implementation of the 13th Amendment, which ensures provincial self-governance.
  • China’s Influence: Strategic concerns about Chinese investments, such as the Hambantota Port, given its proximity to India.
  • Fisheries Dispute: Frequent arrests of fishermen for illegal fishing in maritime boundaries cause tensions.
  • Katchatheevu Island Dispute: Ownership and usage rights of this island in the Palk Strait affect fishing activities.
  • Border Security Issues: Smuggling of goods, narcotics, and illegal immigrants across the maritime boundary.

Recent Developments

  • Maritime Rescue Coordination Centre (MRCC): Jointly commissioned with Indian assistance through a USD 6 million grant.
    • Includes a centre in Colombo, a sub-centre in Hambantota, and unmanned installations in Galle.
    • Part of the Colombo Security Conclave, which includes India, Sri Lanka, Maldives, and Mauritius, with Bangladesh and Seychelles as observers.
  • Model Village Housing Project: Leaders inaugurated houses constructed under the Model Village Housing Project and Indian Housing Project funded by India.
  • Energy Sector Initiatives: Discussions on LNG supply, a proposed petroleum pipeline, and advancing oil and gas exploration projects.
    • Announcement of the construction of the Sampur Solar Power Plant.
  • Other Infrastructure Developments: Focus on projects in Trincomalee, expansion of the Kankesanthurai port, and bolstering liquid milk and fertilizer production in Sri Lanka.

Way Forward

  • Truth and Reconciliation Commission: Support Sri Lanka in addressing civil war legacies to promote healing for Tamil communities.
  • Enhanced Maritime Cooperation: Conduct joint patrols and provide training for Sri Lankan Coast Guard personnel.
  • People-to-People Engagement: Increase cultural exchanges and tourism to strengthen ties.
  • Joint Infrastructure Development: Collaborate on infrastructure projects, ensuring smooth execution from planning to completion.
  • Economic Integration: Swift implementation of the Economic and Technology Cooperation Agreement (ETCA) to reduce trade barriers.
  • Educational and Skill Development: Establish scholarships for Sri Lankan students and create joint skill development initiatives.
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