External Affairs Minister S Jaishankar recently officially visited Sri Lanka. It is the first bilateral visit undertaken by EAM after his re-appointment.
External Affairs Minister Visit to Sri-Lanka
- A few days back, President Ranil Wickremesinghe attended the new government’s swearing-in ceremony following the General Elections in India.
- First bilateral visit to Sri Lanka: It underscores the central place Sri Lanka occupies in India’s ‘Neighbourhood First’ Policy and SAGAR Vision.
- During this visit the discussions were commenced on the way forward for the bilateral cooperation, especially in power, energy, connectivity, port infrastructure, aviation, digital, health, food security, education and tourism sectors.
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IMF Extended Fund Facility
Sri Lanka qualified for an IMF Extended Fund Facility of $ 2.9 billion to tide over its economic crisis, but as a precondition, Colombo’s bilateral creditors must provide financing assurances on debt sustainability.
- China, Japan, and India are Sri Lanka’s main bilateral creditors.
- Creditors’ main concern is that the restructuring plan must treat all creditors equally.
- Of the total bilateral debt, China’s share is 52 per cent, Japan’s 19.5 per cent, and India’s 12 per cent.
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Key Takeaways from the External Affairs Minister Visit to Sri-Lanka
- Sri Lanka’s Debt Restructuring Plan: Jaishankar’s visit came a day after India had conveyed to the International Monetary Fund (IMF) that India strongly supports Sri Lanka’s debt restructuring plan.
- New Delhi is the first bilateral creditor to do so.
- Sri Lanka has sought similar reassurances from China and other creditors as well.
- Agreed Renewable Energy Framework: Sri Lanka’s renewable energy potential is said to be much greater than its current consumption.
- Selling the surplus to India by connecting to an Indian grid through undersea cables is projected as a sustainable source of revenue.
- Energy Security: Oil storage capacity in Trincomalee could be utilised to provide energy security both to Sri Lanka and the region
- India has managed to push both long-pending projects, such as the Trinco oil tank farm, and new ones, such as the Adani investment in wind farms in northwestern Sri Lanka.
- LNG supply: Significant attention was given to plans for an LNG supply, a proposed petroleum pipeline linking the two countries, and advancing oil and gas exploration projects.
- Additionally, it was announced that construction of the Sampur Solar Power Plant is set to commence this year.
- Asking the Sri Lankan government to implement the 13th amendment in its constitution:
About 13th Amendment
Sri Lankan President Ranil Wickremesinghe backed the India-mooted 13th Amendment as a solution to address the minority Tamil community’s long-pending demand for political autonomy.
- India has been pressing Sri Lanka to implement the 13th Amendment which was brought in after the Indo-Sri Lankan agreement of 1987.
- The 13A provides for the devolution of power to the Tamil community.
- The 13A became a part of Sri Lanka’s constitution in 1987 through the direct intervention of the then-Indian government led by prime minister Rajiv Gandhi.
- It created nine provincial councils for nine provinces with a temporary merger of the North and East which the Tamil minority claims is their traditional homeland.
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- Provides for elected provincial councils was introduced in 1987.
- It is the only concession in the constitution on the Tamil demand for devolution.
- The amendment — opposed tooth and nail by Sinhala-Buddhist nationalists both then and now — was intended to create a provincial council in Sri Lanka’s Tamil northeast.
- Indian Housing Project in Sri Lanka: Jaishankar also joined President Wickremesinghe in virtually handing over 48 houses in Colombo and Trincomalee, built under the Model Village Housing Project and 106 houses in three up-country estates, built under Phase III of the Indian Housing Project, with funding from India.
- Maritime Rescue Coordination Centre (MRCC): Unveiled the virtual plaque to mark the formal commissioning of the Maritime Rescue Coordination Centre (MRCC) in Sri Lanka under a USD 6 million grant from India.
- MRCC includes seven unmanned installations at strategic locations across Sri Lanka’s coastline – Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro and Mollikulam.
- It is established by state-run Bharat Electronics Limited (BEL), will serve as the nerve centre for search and rescue operations at the sea.
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Major Pillars of India-Sri Lanka Relations
- Historical Relations: India and Sri Lanka have a long history of cultural, religious, and trade ties dating back to ancient times.
- The two countries have strong cultural ties, with many Sri Lankans tracing their heritage to India.
About Neighbourhood First Policy
- It was conceived in 2008, with the principles of engagement under NFP being 5S (Respect, Dialogue, Peace, Prosperity and Culture)
- It aims to foster stronger ties, enhance regional cooperation and address mutual concerns with the closest neighbouring nations.
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- Buddhism originated in India and is also an important religion in Sri Lanka.Economic Cooperation:
- India was Sri Lanka’s largest trading partner in 2022, accounting for 16 percent of its total trade with the world.
- India extended multi-pronged assistance of about USD 4 billion to it, through multiple credit lines and currency support, in line with India’s ‘Neighbourhood First’ policy.
Vision ‘SAGAR’
- Launched in 2015, Security and Growth for All in the Region (SAGAR) is India’s strategic vision for the Indian Ocean Region (IOR).
- Through SAGAR, India aims to deepen economic and security cooperation with maritime neighbours, assist in building maritime security capabilities, and ensure the region becomes inclusive, collaborative, and adheres to international law.
- SAGAR is integral to India’s broader maritime policies, including the Act East Policy, Project Sagarmala, Project Mausam, India as a ‘net security provider,’ and the focus on the Blue Economy.
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- Defence Cooperation: India and Sri Lanka conduct joint Military (Mitra Shakti) and naval exercises (SLINEX).‘Dosti is a trilateral exercise that aims to enhance cooperation, strengthen friendship, improve mutual operational capability, and develop interoperability among the Coast Guard personnel of India, the Maldives, and Sri Lanka.
- Diplomatic Relations: Sri Lanka is central to India’s “Neighborhood First” and SAGAR (Security and Growth for All in the Region) policies.
- Development Cooperation: The Indian Housing Project, with an initial commitment to build 50,000 houses in war-affected areas and estate workers in the plantation areas, is the Government of India (GoI)’s flagship grant project in Sri Lanka.
- In 2022, India signed an agreement to set up hybrid power projects on northern Sri Lankan islands.
- MOUs signed on Network to Network Agreement between NPCI International Payments Limited (NPIL) and Lanka Pay for Unified Payments Interface (UPI) application acceptance in Sri Lanka & Joint Declaration of Intent (JDI) in the field of Animal Husbandry and Dairying.
- Regional Cooperation: India and Sri Lanka are members of organisations such as SAARC, BIMSTEC, and the Indian Ocean Rim Association (IORA).
- Both are part of international organisations such as the United Nations, World Trade Organization, World Health Organization, International Monetary Fund, World Bank, etc.
- Tourism: In 2015, the Government of India formally launched the e-Tourist Visa (eTV) scheme for Sri Lankan tourists.
- To enhance connectivity between the two nations, India and Sri Lanka entered into an Open Sky Agreement in 2016, enabling Sri Lankan Airlines to operate unlimited flights to India.
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Areas of Conflict Between India-Sri Lanka
- The Ethnic Conflict
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- The Sri Lankan Civil War, which lasted till 2009, significantly impacted India-Sri Lanka relations.
- Sri Lanka’s Tamil ethnic minority, which shares cultural and linguistic ties with Tamil Nadu, has been a concern for India.
- The treatment of the Tamil population during the conflict and the aftermath have at times strained relations between the two countries.
Liberation Tigers of Tamil Eelam (LTTE)
- It was a militant organization that emerged in the northern region of Sri Lanka which sought to establish an independent state called Tamil Eelam for the ethnic Tamil minority in the northern and eastern parts of Sri Lanka.
- It assassinated former Indian Prime Minister Rajiv Gandhi which led to a significant deterioration in India-Sri Lanka relations.
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- Katchatheevu Island Controversy:
- In 1921, both India and Sri Lanka, then British colonies, claimed Katchatheevu to determine fishing boundaries.
- A survey was placed, but a British delegation from India challenged this, citing ownership of the island by the Ramnad kingdom.
Indo-Sri Lankan Maritime Agreement, 1974
- In 1974, then Indian Prime Minister Indira Gandhi made attempts to settle the maritime border between India and Sri Lanka.
- Under the agreement, India ‘ceded’ Katchatheevu to Sri Lanka.
- However, the agreement did not specify the fishing rights of Indian fishermen.
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- The kingdom of Ramanad Raja controlled the island, a zamindari from 1795 to 1803 in Ramanathapuram in the Madras Presidency.
- China’s Growing Influence: China’s increasing influence in Sri Lanka, through investment and infrastructure projects, has been a source of concern for India and has put pressure on the relationship.
- For Example: Cumulative Chinese investments account for 18 per cent of Sri Lanka’s 2021 GDP and 10.8 percent of the country’s foreign debt.
- This allows China special access to Sri Lanka — and its waters.
- India is also concerned about China’s increasing presence in Sri Lanka through investments in ports, which could potentially be used for military purposes.
- Recently, the Chinese ship, Yuang Wang 5 & Shi Yan-6 was docked at Hambantota port which possessed sensors that could track India’s ballistic missiles if they are tested.
- Fisheries Dispute: Problem emerged after a maritime agreement was signed by India and Sri Lanka in 1974Sri Lanka has long expressed concerns about illegal fishing by Indian fishermen within its territorial waters across the Palk Strait.
- There have been regular arrests of Indian fishermen for crossing the International Maritime Boundary Line (IMBL).
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Maritime Agreement 1976
- In 1976, through an exchange of letters, both India and Sri Lanka agreed to stop fishing in each other’s waters.
- In 1974 and 1976 treaties were signed between the two countries to demarcate the International Maritime Boundary Line (IMBL).
- The treaties also ended up making the Palk Strait connecting India and Sri Lanka a ‘two-nation pond’, under the relevant United Nations Convention on the Law of the Sea (UNCLOS) rules to the exclusion of all third nations.
- Bilateral arrangement bans international fishing and shipping.
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Way Forward
- Sustained Engagement and Collaboration: The way forward in India-Sri Lanka relations involves sustained engagement and collaboration, based on mutual respect and understanding, to enhance their people’s well-being and the region’s stability.
- Fisherman Issue: Through bilateral engagements, both countries should try to work out a permanent solution to the issue of fishermen.
- Collaboration: We need to focus on mutually beneficial economic and technological collaboration.
- Need to enhance economic and strategic ties.
- Managing China’s Influence: Engaging in constructive dialogue with Sri Lanka about its relations with other countries, including China, to avoid misunderstandings and suspicions.
- Offering competitive alternatives to Sri Lanka regarding infrastructure development and investments to mitigate over-reliance on a single partner.
- Decoupling from Tamil Nadu Politics: Tamil Nadu should not guide India’s Sri Lanka policy. This must be avoided if India is to make an effective course correction in Sri Lanka. India’s playing into its domestic coalition politics calculation has meant that it has lost the strategic field to China to a great extent.
June 22, 2024