In the contemporary context, the bilateral ties between India and Sri Lanka were initially anticipated to worsen after the electoral successes of Lt. Colonel Gotabaya Rajapaksa in the 2019 Presidential elections and his brother Mahinda Rajapaksa becoming Prime Minister in the subsequent general elections. However, the relationship between these two nations has, instead, evolved and grown. They have acknowledged each other’s apprehensions and demonstrated their readiness to tackle them.
India took the initiative to build relations with the newly elected President from the Sri Lankan Podujana Perumana (SLPP) party, sending its External Affairs Minister to establish a connection with the new Government. In return, President Gotabaya Rajapaksa visited India, marking his first international visit after taking office in November 2019.
Prime Minister Mahinda Rajapaksa reciprocated by visiting India in February 2020.
Although specific issues persist in the relationship, both countries have recognized that these should not overshadow the overall bilateral ties.
In this section, we will delve into the relationship between India and Sri Lanka, two significant maritime neighbours.
A noteworthy and recent stride in the India-Sri Lanka relationship is the expanding economic collaboration between the two nations. India has emerged as Sri Lanka’s leading trading partner and investor. In the year 2022, India injected a substantial investment of over US$2 billion into Sri Lanka, solidifying its position as the country’s largest foreign investor.
Moreover, India is extending substantial financial aid to Sri Lanka, especially as the nation grapples with an economic crisis. In 2022, India provided Sri Lanka with a credit line amounting to US$4 billion, aimed at assisting the country in fulfilling its import requirements and sustaining vital services.
Shared History and Ethnic Issues in the Relationship
The India-Sri Lanka relationship carries a rich historical backdrop with solid ties. Buddhism, for instance, was propagated in Sri Lanka through Indian emissaries dispatched by Emperor Ashoka. Theravada Buddhism held a significant sway on the island nation.
However, historical complexities abound, including invasions by various Indian kingdoms like the Chola and Pallava dynasties. Sri Lanka gained independence from British rule in 1948, ushering in a period marked by ethnic tensions.
The main ethnic groups in Sri Lanka are the Sinhalas and Tamils, with Tamils primarily residing in the Central, North, and Eastern provinces. A significant source of strife emerged early on, with Sinhalas seeking to curtail Tamil influence in various sectors such as civil services, business, and judiciary.
The ‘Sinhala Only Act’ enacted in 1956 declared Sinhalese as the sole national language, marginalizing the Tamil population and denying them equal opportunities. This resulted in organized violence and the killing of Tamils during the 1970s and 1980s.
Amid these tensions, several militant organizations, like the Liberation Tigers of Tamil Eelam (LTTE), emerged, leading to a civil war in the 1980s. India intervened with the Indian Peace Keeping Force (IPKF) to assist Sri Lankan armed forces, but the Relationship between the two countries became strained. Sri Lanka perceived India’s involvement as meddling in its internal affairs.
The Indo-Sri Lankan Accord of 1987, also known as the Rajiv Gandhi-Jayewardene Accord, aimed to grant autonomy to the Northern and Eastern provinces with a Tamil majority. This accord, however, could have been implemented differently than planned.
Nevertheless, it did lead to the 13th Amendment to the Sri Lankan constitution, introducing federalism and Provincial Councils while recognizing Tamil and Sinhalese as national languages with English as the link language.
Terrorism continued to pose a challenge, but it was under Prime Minister Mahinda Rajapaksa’s leadership that the LTTE was eventually defeated in 2009. This organization had been responsible for grave incidents in both India and Sri Lanka, including the assassination of former Indian Prime Minister Rajiv Gandhi in 1991 and former Sri Lankan President Ranasinghe Premadasa.
The 13th Amendment remained a point of contention. India consistently advocated for its implementation, but news reports have indicated potential dilution since the 2019 presidential victory.
This issue has been a significant influence on India’s Relationship with Sri Lanka and is an example of domestic politics impacting foreign policy. The State of Tamil Nadu, in India, actively shapes national politics, and the treatment of the Tamil population in Sri Lanka significantly influences it. India’s government even voted against Sri Lanka at the United Nations Human Rights Council under pressure from coalition partners.
Amid this backdrop, India must consider its long-term interests concerning Sri Lanka and prioritize foreign policy over domestic political factors. It’s worth noting that the 19th Amendment, which reduces the executive powers of the Sri Lankan President, has also been in the spotlight. Presently, both the President and Prime Minister have pledged to restore the President’s executive powers.
These historical and contemporary elements continue to shape the complex Relationship between India and Sri Lanka.
Pillars of Cooperation
This section delves into three pivotal facets of collaboration between India and Sri Lanka.
1. Economic Cooperation and Development Assistance:
The India-Sri Lanka Free Trade Agreement (FTA) has been a driving force for increasing bilateral trade. In 2018, the trade between the two nations amounted to USD 4.93 billion. India exported goods and services valued at USD 4.16 billion, while it imported goods and services worth USD 767 million.
India’s exports to Sri Lanka encompass IT, pharmaceutical products, automobile products, and more. The FTA has also boosted the Sri Lankan textile sector’s exports to India.
India stands among the top five foreign investors in Sri Lanka, with investments exceeding USD 1.23 billion in sectors like telecommunications, tourism, IT, retail, and real estate.
Recent discussions have identified IT, education, and healthcare as areas ripe for further cooperation.
Sri Lankan companies have invested in India, with a significant presence in Vizag, Andhra Pradesh. However, there has been some discord concerning a joint Indo-Japanese investment project.
The construction of the East Container Terminal in Colombo faced delays due to Sri Lankan clearances, straining the investment relationship.
India has been a major source of financial assistance for development and infrastructure projects in Sri Lanka, contributing over USD 1.2 billion. During a recent presidential visit to India, an additional USD 450 million was pledged.
Notable projects backed by a Line of Credit include the construction of over 50,000 houses in the Northern and Eastern provinces, railway line refurbishments, development of ports and oil tank farms, upgrades to airports, and more.
India and Sri Lanka are also part of the Asian Tea Alliance, which includes China, Japan, and Indonesia, key tea producers in Asia.
2. India-Sri Lanka Free Trade Agreement (ISFTA)
The India-Sri Lanka Free Trade Agreement (ISFTA), signed in 1998 and operational since March 2000, forms the core framework for bilateral trade.
The agreement aims to address economic disparities, socio-economic sensitivities, safeguard measures, and revenue implications, ensuring that high-revenue tariff lines are not immediately impacted.
Sri Lanka’s Debt Challenges
Sri Lanka is grappling with a significant external debt burden, estimated at approximately USD 60 billion. In the fiscal year 2020-2021, Sri Lanka’s debt obligations amounted to USD 4.5 billion.
In response to this financial strain, Sri Lanka has initiated discussions for deferred payments, explicitly concerning a debt of USD 960 million owed to India. Furthermore, negotiations are underway for two currency swap agreements with the Reserve Bank of India (RBI). The RBI has already approved one currency swap agreement valued at USD 400 million.
Notably, China, known for its debt trap diplomacy, has taken control of the Hambantota Port in Sri Lanka on a 99-year lease due to non-repayment of loans. China is now contemplating an additional concessional loan of USD 500 million, supplementing the earlier granted USD 90 million.
For countries like Sri Lanka, grappling with loan defaults and ceding physical assets to China raises concerns, as it may pose security implications for India. It underscores the importance of addressing Sri Lanka’s debt challenges to safeguard regional stability.
Defence and Strategic Relations
India and Sri Lanka maintain robust defence and strategic relations marked by several key initiatives:
Bilateral Naval and Army Exercises: The two nations regularly engage in bilateral naval exercises through SLINEX. Likewise, the armies participate in Mitra Shakti bilateral exercises, promoting military cooperation and interoperability.
Trilateral Dialogues: A constructive dialogue mechanism exists between the National Security Advisors of India, Sri Lanka, and Maldives. This dialogue has led to trilateral naval exercises, emphasizing regional security.
Strategic relations encompass two overarching categories:
1. Ensuring Indian Ocean Region (IOR) Safety:
The IOR is vital for energy security and maritime commerce. Safeguarding this region from piracy and external influences is paramount.
India has expressed a willingness to collaborate with like-minded nations, including the US and Japan, to promote peace and development in the IOR and Indo-Pacific region.
Curtailing China’s influence, notably through debt trap diplomacy, is crucial to preserving regional stability and deterring efforts like the encirclement through Hambantota, part of China’s “String of Pearls” strategy.
2. Countering Terrorism:
The 2019 Easter attacks underscored the importance of cooperation between India and Sri Lanka in countering Terrorism.
A terror group called ‘Tawaheed Jamaat,’ based in India’s Tamil Nadu state, orchestrated these attacks. India shared intelligence with Sri Lanka, although it was initially disregarded.
Following the new President’s victory, both countries reaffirmed their commitment to combat terrorism jointly. India extended over USD 400 million, including funds to enhance Sri Lanka’s counter-terrorism capabilities.
Additionally, the two nations cooperate within various multilateral forums such as SAARC and BIMSTEC. As India assumes the non-permanent membership of the UNSC, the country needs to play a proactive role and address past shortcomings in forums like the UNHRC.
This multifaceted collaboration is integral to maintaining regional security, peace, and stability in the Indian Ocean Region.
Cultural Relations
The deep cultural ties between India and Sri Lanka, rooted in Buddhism and Hinduism, have fostered a strong bond between the two nations. Some significant aspects of these cultural relations are:
Promoting Buddhism: Both countries share a profound connection to Buddhism. In a recent virtual conference between the Prime Ministers of India and Sri Lanka, India pledged USD 15 million to strengthen the ties between Buddhist institutions in both nations. This commitment aims to enrich the cultural and spiritual connections that have existed for centuries.
Tourism: India consistently contributes one of the highest numbers of tourists to Sri Lanka each year. This flow of tourists reflects the enduring cultural and historical allure between the two nations.
Scholarships: The Indian Council for Cultural Relations plays a pivotal role by providing scholarships to Sri Lankan students who wish to pursue their studies in India. These scholarships support educational and cultural exchanges, fostering a deeper understanding between the two nations.
Tamil Language Preservation: The governments of India and Sri Lanka collaborate on preserving the Tamil language, emphasizing the importance of linguistic and cultural heritage.
These cultural relations showcase the shared heritage, values, and traditions that bind India and Sri Lanka, creating a bridge that transcends borders and strengthens the profound cultural connection between the two nations.
Other Issues and Challenges in INDIA-SRI LANKA RELATIONS
In addition to the aspects mentioned earlier, there are critical issues that could strain the relationship between India and Sri Lanka. One such concern is the safety of fishermen, which has long been a contentious matter:
Maritime Boundary Crossings: Fishermen from the Indian state of Tamil Nadu often cross the maritime boundary into Sri Lankan waters to seek more abundant catches. The rich fishing grounds in Sri Lankan waters are alluring to these Indian fishermen.
Violent Reactions: Sri Lankan authorities have sometimes responded forcefully to these incursions, with their navy resorting to firing on Indian fishermen, resulting in casualties.
Imprisonment and Property Loss: In numerous instances, Indian fishermen have been arrested and confined in Sri Lankan prisons. Their fishing boats and equipment have also been seized or destroyed.
Environmental Consequences: Deep-sea trawling conducted by Indian fishermen has had detrimental effects on the seabed, affecting both Indian and Sri Lankan waters.
Joint Committee for Resolution: A Joint Committee established by both countries has been tasked with addressing this issue. However, a lasting solution still needs to be discovered.
During a recent visit by the Sri Lankan President to India, a significant goodwill gesture was made when Sri Lanka released all Indian fishermen detained in its prisons. These actions underscore the persistent efforts to resolve this challenging issue and strengthen the cooperative spirit between the two nations.
The Palk Bay plays a pivotal role in fostering the historical ties and connections between India and Sri Lanka:
It’s a relatively shallow stretch of water, forming a natural bridge that enables the flow of ideas, goods, and people between India and Sri Lanka.
The Palk Bay is positioned as a narrow expanse, running alongside the state of Tamil Nadu in India and the Northern Province of Sri Lanka.
Its dimensions measure approximately 137 kilometres in length, with varying widths from 64 to 137 kilometres, and it is demarcated by the International Maritime Boundary Line (IMBL).
The Palk Bay borders five Indian districts and three Sri Lankan districts, further enhancing its significance as a cultural and economic corridor between the two nations.
Katchatheevu Island:
Katchatheevu Island is an intriguing feature within the Palk Strait, marked by historical and territorial intricacies:
It is an uninhabited island located in the Palk Strait and was originally under the ownership of a king of Ramnad, which is present-day Ramanathapuram in Tamil Nadu, India.
Fishermen frequently use the island for drying their nets, and this has remained a point of contention.
During the British colonial era, it was jointly administered by both India and Sri Lanka.
However, in 1974, India ceded its territorial claim to the island to Sri Lanka, formalizing the transfer through a bilateral agreement.
In 1976, an exchange of letters between both nations marked the agreement to cease fishing in each other’s waters.
The situation surrounding Katchatheevu Island remains a matter of dispute, as Tamil fishermen assert traditional rights to the territory, believing they have a historical claim to its waters. In contrast, Sri Lankan authorities express concerns that this poses a threat to the livelihood of local Sri Lankan fishermen. The island’s status is symbolic of the intricate and multifaceted relations between India and Sri Lanka.
Charting a Path Forward
Navigating the future of India-Sri Lanka relations involves recognizing opportunities and addressing persistent issues:
Given the shared democratic foundations of both nations, there is substantial potential to expand and strengthen their ties. Building upon cultural and historical connections can bolster bilateral relations.
Initiating ferry services between India and Sri Lanka has the potential to enhance people-to-people connections, fostering greater mutual understanding.
A lasting solution to the longstanding issue of fishermen crossing maritime boundaries should be sought through sustained bilateral dialogues, considering the welfare and rights of all involved.
Signing a Comprehensive Economic Partnership Agreement (CEPA) is vital to elevate economic cooperation and open new avenues of trade and investment between the two nations.
In Closing:
In summary, the relationship between India and Sri Lanka must be continuously nurtured, leaving no room for complacency. The partnership holds immense growth potential if both sides work collaboratively to diplomatically and peacefully address any outstanding concerns.
UPSC Mains PYQ
Q. ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’. In the light of this statement, discuss its impact on India as her neighbour. (10 marks) (150 words) (2017)
Q. In respect of India-Sri Lanka relations, discuss how domestic factors influence foreign policy. (10 marks) (150 words) (2013).
F.A.Q.
Q. Was Sri Lanka part of India ?
Answer:- Sri Lanka has never been a part of India; it is an independent island nation situated in the Indian Ocean, off the southeastern coast of India. The Palk Strait and the Gulf of Mannar create a natural boundary, separating Sri Lanka from the Indian mainland.
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