India’s ties with Sri Lanka have taken a new turn as the nations strengthen their relations with several key projects. Recently, India’s External Affairs Minister traveled to Sri Lanka to finalize an MoU that allows India to set up hybrid power projects on three islands off Jaffna – Nainativu , Delft or Neduntheevu , and Analaitivu. Effectively replacing a Chinese venture, this marks India’s third energy project in Sri Lanka’s northern and eastern regions. This move, along with a USD1-billion short-term concessional loan to help Sri Lanka amid a severe economic crisis, highlights India’s increasing push towards active diplomacy.
Fending Off Chinese Threat
In January 2021, Sri Lanka initially awarded renewable energy projects in the aforementioned islands to Chinese company Sinosoar-Etechwin, backed by the Asia Development Bank. However, India quickly registered its concerns over the project, located merely 50 km from Tamil Nadu in the Palk Bay. Consequently, India proposed to undertake the same project through a grant rather than a loan, effectively fending off the perceived Chinese threat.
Maritime Safety and Cooperation
Agreeing to establish a Maritime Rescue Coordination Center (MRCC), both countries have signaled a stronger defence collaboration. MRCCs monitor sea lanes for emergencies, rescue operations, and environmental disasters prevention under the UN’s International Maritime Organisation. This arrangement aligns with India’s SAGAR (Security and Growth for all in the Region) initiative in the Indian Ocean, which also involves the Maldives and Mauritius in their refresh of the 2011 Colombo Security Conclave.
Capacity Building and Development Projects
India has pledged to help develop fisheries harbours in Point Pedro, Pesalai, Gurunagar (Northern Province), and Balapitiya (south of Colombo). Additionally, India has promised support for Sri Lanka’s Unique Digital Identity project and diplomatic training, furthering its commitment to capacity building.
Resolution of Tamil Question
India welcomes the recent dialogues between President Gotabaya Rajapaksa and the Tamil National Alliance, representing the Tamils affected by the war in the north and east. This dialogue aims to address Sri Lanka’s long-pending Tamil question.
Recent Issues in Indo-Lankan Relations
Continuing issues such as the killing of Indian fishermen and the increasing Chinese influence challenge India-Sri Lanka relations. The arrest of 284 Indian fishermen and confiscation of 53 boats by Sri Lankan authorities in 2019 and 2020 reiterate the sensitivity of this issue. Furthermore, China’s growing economic footprint and political clout (accounting for over 23% of Sri Lanka’s FDI in 2010-2019) puts additional strain on the relations.
The 13th Amendment of the Sri Lankan Constitution
The 13th Amendment proposes devolving powers to provincial councils to address the just demands of Tamils for equality, justice, peace, and respect within a united Sri Lanka. India supports this implementation as a measure to improve bilateral ties.
Way Forward
Nurturing the ‘Neighbourhood First’ policy with Sri Lanka is crucial for India to safeguard its strategic interests in the Indian Ocean region. There is a need to increase people-centric developmental activities while avoiding interference in Colombo’s domestic affairs. Given its larger size, India should exercise patience and actively engage Sri Lanka at different levels to build trust and ensure smooth relations.