Opinion Temples, trade, defence: With PM Modi’s Sri Lanka visit, a renewed commitment to bilateral ties

During Sri Lanka’s economic crisis, India had provided a $4 billion financial assistance package, which included credit lines for essential imports, such as fuel, medicine, and food. Further, India was instrumental in facilitating Sri Lanka’s discussions with the International Monetary Fund (IMF), securing financial aid for the island country. In acknowledgement of PM Modi’s outstanding contributions to enhancing bilateral relations and fostering the shared cultural and spiritual heritage, Sri Lanka awarded him the esteemed Mitra Vibhushana.

In the realm of defence and security, India has consistently provided robust support to Sri Lanka. Given Sri Lanka’s strategic position and the rising influence of China in the Indo-Pacific, it plays a crucial role in regional maritime security, and India considers the island nation a vital ally in protecting its interests in the Indian Ocean Region. The two countries have enhanced their collaboration in maritime surveillance, counter-piracy initiatives, and disaster relief operations. India has also offered to help Sri Lanka strengthen its naval capabilities.

India has also been providing support to Sri Lanka in bolstering its counter-terrorism apparatus, particularly after the 2019 Easter attacks. The recent MoU on Defence Cooperation will strengthen this partnership further. President Dissanayake assured PM Modi that Sri Lanka would not allow its territory to be used in a manner inimical to India’s security interests.

Apart from defence cooperation, PM Modi and President Dissanayake presided over the signing of several other MoUs aimed at bolstering multi-faceted collaboration. They include: The implementation of HVDC (high-voltage direct current) interconnection for the import and export of power, cooperation in digital transformation and health and medicine, and also in the development of Trincomalee as an energy hub. India’s grant assistance will benefit the development of the Thirukoneswaram temple in Trincomalee, the Sita Eliya temple in Nuwara Eliya, the Sacred City Complex project in Anuradhapura and the upgradation of the Maho–Omanthai Railway Line project. PM Modi also announced a comprehensive capacity-building programme in India covering 700 Sri Lankans annually.

A cornerstone of the visit was the inauguration of a 120-megawatt solar power plant in Trincomalee, which exemplifies Sri Lanka’s commitment to sustainable development and a strategic shift towards renewable energy sources. Furthermore, the two nations discussed plans to improve power grid connectivity and investigate new ferry routes between Rameshwaram and Talaimannar to strengthen regional connectivity and promote economic integration.

India continues to be Sri Lanka’s leading trading partner. In 2024, the bilateral trade between the two countries exceeded $5.5 billion. Both nations are actively engaged in efforts to lower trade barriers and enhance the exchange of goods. Additionally, India stands as Sri Lanka’s primary source of imports, playing a crucial role in the island’s economic recovery.

New Delhi has invested in various infrastructure projects as well, such as housing for displaced Tamils and efforts to rehabilitate areas impacted by conflict. Recently, India unveiled a support package worth approximately 2.4 billion Sri Lankan rupees to promote social and economic growth in Sri Lanka’s eastern provinces.

India’s approach to its relationship with Sri Lanka offers important insights for Bangladesh and Nepal as they navigate their intricate geopolitical environments. They recognise the risks associated with China’s debt traps and are closely monitoring the outcomes of Sri Lanka’s economic recovery, particularly in light of India’s investments.

The writer is associate professor, Centre for South Asian Studies, School of International Studies, Jawaharlal Nehru University