India - Sri Lanka Relations | Current Affairs | Vision IAS
MENU
Home

Periodically curated articles and updates on national and international developments relevant for UPSC Civil Services Examination.

Quick Links

High-quality MCQs and Mains Answer Writing to sharpen skills and reinforce learning every day.

Watch explainer and thematic concept-building videos under initiatives like Deep Dive, Master Classes, etc., on important UPSC topics.

ESC

India - Sri Lanka Relations

17 May 2025
5 min

Why in the News? 

Prime Minister of India was honoured with Sri Lanka's highest civilian award, Mithra Vibhushana during his two-day state visit to Sri Lanka. 

Key Outcomes of the Visit

  • Defence cooperation: India and Sri Lanka signed a comprehensive MoU on defense cooperation, consolidating existing understandings into a structured framework.   
    • Also, Sri Lankan President reaffirmed no use of its territory against India, addressing concerns over China's regional influence.
  • Energy Collaboration: India, Sri Lanka, and the UAE agreed to jointly develop an energy hub in Trincomalee.
  • Digital Transformation: Both countries signed MoU on Cooperation in the Field of Sharing Successful Digital Solutions Implemented at Population Scale for Digital Transformation.
    • India announced support for Sri Lanka's Unique Digital Identity project.
  • Grant Assistance: India announced grant assistance for the development of Thirukoneswaram temple in Trincomalee, Sita Eliya temple in Nuwara Eliya, and Sacred City Complex project in Anuradhapura.
  • Others: 
    • India agreed on the conversion of 100 million US dollars in loans to grants.
    • India announced a 2.4 billion Lankan rupees package for the Eastern Province.
    • India also announced comprehensive capacity-building programme in India covering 700 Sri Lankans annually.

Significance of India- Sri Lanka Relations 

For Both Nations

  • Cooperation at International forums: India supports Sri Lanka's application to become a member of BRICS. 
    • Sri Lanka has extended its support to India's candidature for a non-permanent seat on the UN Security Council for 2028-29.
  • Shared maritime security interests in Indian Ocean Region (IOR): Both are committed to countering traditional and non-traditional threats and to ensure a free, open, safe and secure IOR.
  • Energy cooperation: Several projects are at different stages of discussions, for instance, plans for inter-grid connectivity, a multi-product petroleum pipeline between the two countries, supply of LNG, and the under-preparation Sampur Power Project. 
  • Regional and multilateral cooperation: Both are part of, commonwealth Group, Indian Ocean Rim Association (IORA), and BIMSTEC.
  • Military collaboration: Joint exercises like SLINEX (Naval) and MITRA SHAKTI (Army) are held annually. 
    • Sri Lanka also participates in MILAN, the multilateral naval exercise hosted by the Indian Navy.

For Sri –Lanka 

For India

  • Financial Aid: Nearly USD 4 billion was provided by India in various kinds of aid in 2022 and 2023 to help the country navigate its economic crisis.
    • Indian provided assistance for renovating the Kankesanthurai Port in Jaffna.
  • IMF Bailout: India was among the first countries to provide financing assurances to IMF, a prerequisite for the IMF's $2.9 billion bailout package approved in 2023.
  • Economic Importance: India has been Sri Lanka's largest trade partner, top FDI contributor, & largest source of tourists.
  • Humanitarian Assistance: India acts as a 'first responder' for Sri Lanka in the field of Humanitarian Assistance and Disaster Relief. E.g., During COVID-19 pandemic, India sent 500,000 vaccines to Sri Lanka.
  • Security of Indian Ocean: Sri Lanka is India's closest maritime neighbour and plays crucial role in preventing territorial actions inimical to India's security/ stability.
  • Alignment with India's policy: Sri Lanka has a central place in India's 'Neighbourhood First' policy and MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision.
  • Indian Origin Tamils (IOTs):  Around 1.6 million IOTs, primarily employed in tea and rubber plantations, with a significant presence in Colombo's business sector.

Irritants in India-Sri Lanka Relations

  • Chinese Influence: China's growing influence through financial aid and projects like Hambantota Port increases its leverage over Sri Lanka, impacting India's interests.
    • Chinese vessels (Shi Yan-6, Yuan Wang-5) conduct data collection activities may potentially aid future military operations against India.
  • Fishermen Disputes: Sri Lanka opposes use of bottom trawlers by Indian fishermen and frequent entry into Sri Lankan waters citing concerns regarding environmental damage and overfishing.
    • Also, territorial dispute over this Kachchatheevu Island, ceded to Sri Lanka in 1974, remains a contentious issue, with Indian fishermen claiming traditional fishing rights.
  • Tamil Ethnic Issue: Slow reconciliation efforts, e.g., delay in implementation of 13th Amendment (in Sri Lanka's Constitution) post Tamil-Sinhala conflict impact India's domestic politics.
    • The amendment was a result of Indo-Lanka Accord (1987). Sinhala nationalists oppose it as an imposition while Tamil groups seek broader powers.

Way Forward

  • India's Five "S" Approach: Samman (Respect), Samvad (Dialogue), Sahyog (Cooperation), and Shanti (Peace); to create conditions for universal Samriddhi (Prosperity).
  • Constructive engagement: Establish a permanent bilateral institutional mechanism to address fishermen disputes, moral persuasion and developmental support to push for effective implementation of the 13th Amendment, etc.
  • Soft power and cultural diplomacy: Joint promotion of religious tourism under Buddhist circuit and Ramayana Trail with infrastructure support, digital platforms, and diaspora engagement.
  • Multilateral cooperation: Effective utilization of institutions like BIMSTEC and Indian Ocean Rim Association (IORA) to create common positions on regional maritime security, climate change, and economic integration.

Explore Related Content

Discover more articles, videos, and terms related to this topic

RELATED VIDEOS

3
News Today (May 23, 2024)

News Today (May 23, 2024)

YouTube HD
News Today (Jul 13, 2024)

News Today (Jul 13, 2024)

YouTube HD
News Today (Apr 05, 2025)

News Today (Apr 05, 2025)

YouTube HD
Title is required. Maximum 500 characters.

Search Notes

Filter Notes

Loading your notes...
Searching your notes...
Loading more notes...
You've reached the end of your notes

No notes yet

Create your first note to get started.

No notes found

Try adjusting your search criteria or clear the search.

Saving...
Saved

Please select a subject.

Referenced Articles

linked

No references added yet

Subscribe for Premium Features