(General Studies II – International Relations Section – India and its Neighbourhood- Relations.)
- India and Sri Lanka share a relationship spanning over 2,500 years, built on intellectual, cultural, and religious connections, with Buddhism forming a strong foundation.
- Exchanges of cultural delegations and the celebration of shared heritage, such as the opening of the Kushinagar airport for Sri Lankan pilgrims, underscore this legacy.
| “It is natural for India to stand by Sri Lanka during its difficult time as ‘blood is thicker than water.’” – S Jaishankar |
| Political Relations |
- The two nations have maintained consistent high-level political engagements, with recent bilateral summits and exchanges highlighting cooperation on various fronts.
- India’s support during Sri Lanka’s civil war emphasized its stance on sovereignty and human rights, advocating for reconciliation within a united framework.
- Recent visits from both sides emphasize the commitment to a cooperative approach across development and security.
| Economic Partnership |
- India is one of Sri Lanka’s largest trade partners, with a robust trade relationship since the implementation of the India-Sri Lanka Free Trade Agreement (ISFTA) in 2000.
- Bilateral trade reached approximately $5.45 billion in 2021, and Indian investments, especially in energy, tourism, and manufacturing, have exceeded $2.2 billion.
- Development projects funded by India include significant infrastructure and livelihood projects.
| Development Cooperation |
- India has pledged over $3.5 billion in grants and lines of credit for projects in housing, health, education, and transportation.
- Flagship projects, such as the 1990 Emergency Ambulance Service and the construction of 62,500 houses, reflect India’s focus on humanitarian aid.
- Lines of credit have been used to upgrade Sri Lankan railways and develop solar power infrastructure.
| Fishermen’s Issue Reasons for Conflict Traditional Fishing Grounds: Indian fishermen, historically fishing in the Palk Bay area, are now restricted due to the 1974 and 1976 maritime agreements. These treaties set boundaries that many fishermen, reliant on these waters, continue to cross.Dependence on Trawling: Many Indian fishermen use trawling—a method banned in Sri Lanka due to ecological damage. Trawlers entering Sri Lankan waters often lead to confrontations and arrests by Sri Lankan authorities.Economic Need: With limited fish stocks on the Indian side, crossing into Sri Lankan waters is economically necessary for some fishermen, leading to repeated incursions and escalating tensions.Katchatheevu Island: This islet, ceded to Sri Lanka, was a traditional resting point for Indian fishermen. Its transfer restricts access, leading to heightened risks and increased incidents of crossing the boundary. Suggested Solutions Promote Deep-Sea Fishing: India’s Deep Sea Fishing Scheme encourages Tamil Nadu fishermen to transition to deeper waters, reducing boundary crossings and potential conflicts.Ban Harmful Fishing Practices: Aligning Indian fishing regulations with Sri Lankan standards, particularly banning trawling, could ease tensions and foster cooperation.Establish Palk Bay Authority (PBA): A proposed PBA with experts from both countries could set sustainable fishing practices and mediate issues, benefiting both sides ecologically and economically.Enhance Marine Resources: Joint efforts to boost fish stocks in the Palk Bay would minimize competition and ensure sustainable fishing for both nations’ communities.Strengthen Joint Working Groups (JWGs): Improving the India-Sri Lanka Joint Working Group on Fisheries can foster regular dialogue, helping prevent conflicts and create sustainable fishing guidelines. |
| Cultural and People to People Ties |
- The shared Buddhist heritage drives cultural diplomacy, with mutual programs and scholarships promoting educational exchanges.
- The Swami Vivekananda Cultural Centre in Colombo fosters cultural awareness, offering training in classical arts and yoga.
| Tourism & Connectivity |
- India is the largest source of tourists to Sri Lanka, facilitated by the e-Tourist Visa scheme and the Open Sky Agreement, allowing direct flights between major cities.
- Tourism recovery post-COVID has been strong, with tourism contributing significantly to both economies.
| A Note on the Sri Lankan Economic Crisis Crisis Background: Sri Lanka’s economic downturn, beginning in 2019, was driven by tax cuts, excessive money printing, a sudden fertilizer ban, and the COVID-19 impact on tourism, leading to severe fiscal and foreign exchange deficits. Forex and Debt Defaults: Facing dwindling foreign reserves and inflation, Sri Lanka defaulted on its international debt in April 2022, marking its first-ever sovereign default. India’s Lifeline: India provided essential support with a $4 billion line of credit, which enabled Sri Lanka to import critical goods like food and fuel, helping stabilize its foreign reserves. Outcome of Assistance: Thanks to India’s intervention, Sri Lanka’s foreign reserves rose to $4.4 billion by December 2023, marking a significant step toward stabilization amid ongoing challenges. Path Forward: With India’s backing, Sri Lanka has managed to secure some economic stability and looks forward to a slow but steady recovery. |
| Strengthening India-Sri Lanka relations hinges on mutual respect for sovereignty, continued economic and developmental collaboration, and fostering people-to-people ties. With coordinated actions on shared issues such as fishermen disputes and trade, the nations can reinforce their partnership in South Asia. |
