India-Sri Lanka Relations: Opportunities and Challenges

India – Srilanka Relationship evaluation:

India Srilanka Bilateral Engagement:

1. Trade Ties: Bilateral trade reached USD 5.5 billion in FY 2023-24, with India’s exports at USD 4.1 billion. India has USD 2.2 billion in FDI, mainly in energy and infrastructure. Negotiations for the ETCA are ongoing to boost trade and services.
2. Defence & Security: India and Sri Lanka conduct annual SLINEX (naval) and MITRA SHAKTI (army) exercises, with India supporting Sri Lanka’s maritime surveillance through MRCC installation. The Colombo Security Conclave strengthens regional security, focusing on counter-terrorism.
3. Cultural Ties: India supports Sri Lanka’s Buddhist heritage, including the Kapilavastu relics and Indian Gallery in Kandy, while promoting cultural exchange through the Indian Cultural Centre and Bharat-Kosh at the Colombo Library.
4. Health Cooperation: India provided 500,000 COVISHIELD vaccines and 100,000 RAT kits during COVID-19 and supports healthcare development, including a multi-specialty hospital in Dickoya.
5. Education & Capacity Building: India offers 710 scholarships annually to Sri Lankan students and 402 ITEC training slots alongside various professional development programs.
6. People-to-People Ties: India’s 1.6 million IOTs in Sri Lanka contribute to business and agriculture with ongoing cultural and educational exchanges, including STEM training for plantation school teachers.
7. Regional Relations & LTTE: India plays a key role in SAARC for regional trade and security, supporting Sri Lanka’s sovereignty and reconciliation efforts while addressing Tamil issues diplomatically.

Significance of  Srilanka for India:

1. Strategic Location: Sri Lanka’s proximity to India enhances regional security, maritime trade routes, and naval cooperation in the Indian Ocean.
2. Cultural & Historical Ties: Shared civilizational links, including Buddhism and long-standing cultural exchanges, deepen bilateral relations.
3. Economic Partnership: Sri Lanka is a major trade partner, with India being the largest investor, focusing on energy, infrastructure, and development projects.
4. Regional Security Cooperation: India and Sri Lanka collaborate on defence, including joint exercises (SLINEX, MITRA SHAKTI) and regional security frameworks like the Colombo Security Conclave.
5. People-to-People Relations: A large Indian-origin Tamil community in Sri Lanka fosters deep social and economic connections, bolstered by educational and cultural exchanges.
6. Support during Crises: India provided significant humanitarian aid and financial support during Sri Lanka’s economic crisis, including food, fuel, and medical assistance.
7. Counter-Terrorism & LTTE Issues: India supports Sri Lanka’s sovereignty and peace-building efforts while addressing Tamil issues through diplomatic channels, ensuring regional stability.

Areas of Concern:

1. Ethnic Tensions: The ongoing Tamil ethnic issues and reconciliation efforts remain a sensitive topic, with Sri Lanka’s treatment of Tamil minorities causing occasional strains.
2. China’s Influence: Sri Lanka’s increasing engagement with China, particularly in infrastructure projects like the Hambantota Port, is a concern for India’s strategic interests in the region.
3. Fishing Disputes: Frequent conflicts between Indian and Sri Lankan fishermen over maritime boundaries, particularly in the Palk Straits, create tensions.
4. Debt Crisis: Sri Lanka’s economic instability, exacerbated by high debt levels, places pressure on India’s support, particularly in financial aid and trade.
5. Security Challenges: The presence of radical elements and concerns over Sri Lanka’s security policies, particularly post-Easter Sunday attacks, pose risks to regional stability.
6. Regional Influence: India’s competition with China for influence in Sri Lanka can impact bilateral ties and regional cooperation, requiring careful diplomatic balancing.
7. Environmental Concerns: Environmental issues such as the oil spill from the MT New Diamond and the impact of industrial activities pose challenges to both nations’ maritime cooperation and environmental policies.
8. Border Issues: Disputes over maritime boundaries, particularly in the Gulf of Mannar and Palk Bay, involve disagreements on fishing rights and the delimitation of Exclusive Economic Zones (EEZ).

Way forward:

Conclusion

India and Sri Lanka share a deep, multifaceted relationship that spans political, economic, cultural, and security domains. While both nations enjoy strong ties, they also face challenges such as ethnic tensions, external influence from China, and environmental concerns. Moving forward, both countries must continue to address these challenges through enhanced cooperation, mutual respect, and shared strategic interests to strengthen their partnership for regional peace, prosperity, and stability.
 

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