India-Sri Lanka Relations

SYLLABUS

GS-2: International Relations: India and its Neighbourhood

REFERENCE NEWS

The announcement by Sri Lanka’s President Ranil Wickremesinghe, recently, about a proposal to establish land connectivity with India has come none too soon.

WHY SRI LANKA IS IMPORTANT TO INDIA?

Maritime security:

• Sri Lanka is geographically positioned near the major chokepoints like the Strait of Malacca. It also has a list of highly strategic ports located among the busiest sea lanes of communication, like the Port of Colombo.
• Thus, a strong presence in the island nation has broad strategic significance for countering piracy and ensuring smooth global maritime trade.

Countering Chinese presence:

• China’s strategic interests through strategies such as the ‘String of Pearl’ is a concern for India. One of its key strongholds is the Hambantota port in Sri Lanka. Here, a strong relationship with Sri Lanka can help India counter such strategies.

Counter terrorism:

• In April 2019, the island nation was rocked by a series of coordinated terrorist suicide bombings. The presence of such radical elements in the country could serve as a potential launch pad for terrorists targeting India.

Economic:

• India has traditionally been among Sri Lanka’s largest trade partners and Sri Lanka remains among the largest trade partners of India in the SAARC.
• The deep-water trans-shipment hubs in Sri lanka are vital for India’s sea trade. Sri Lanka also has an intrinsic role in advancing blue economy through sustainable management and utilization of marine resources.

Cooperate in international forum:

• Since Sri Lanka is an important member of SAARC and BIMSTEC, it is important for India to have Sri Lanka on board to maintain its leadership in the region.
• Sri Lanka’s favourable stand in developments relating to Jammu and Kashmir and abolition of Article 370 are advantageous for India.

Diaspora:

• Both regions share a strong ethnic and cultural relation since the ancient times. This continues today, in the form of tourism circuits, Buddhist pilgrimage and other cultural exchanges
• There are two groups of Tamils in Sri Lanka. The first are the Sri Lankan Tamils, who descended from the Tamils of the old Jaffna kingdom. The second are the Indian Tamils, who are descendants of bonded labourers sent from Tamil Nadu to Sri Lanka in the 19th century to work in tea plantations.

COOPERATION:

Historic relations:

• The relationship between India and Sri Lanka is more than 2,500 years old. Both countries have a legacy of intellectual, cultural, religious and linguistic interaction.

Economic relations:

• Bilateral trade:
• Investment:
• India-Sri Lanka Free Trade Agreement in 2000.
• India is Sri Lanka’s third largest export destination, after the US and UK. 
• Several leading companies from India have invested and established their presence in Sri Lanka. Ex: Tata Group
• Similarly, investments by Sri Lankan companies in India are also surging. Ex: Apparel manufacturer Brandix to set up a garment city in Visakhapatnam.
• Tourism:
  • Apart from the growth in trade and investment, India has been the largest source market of tourists visiting Sri Lanka, prior to the pandemic.
  • The total number of tourist arrivals from India to Sri Lanka during January-December 2019 was 355,002 i.e. approximately 18.2% of the total tourist arrivals into Sri Lanka.
  • Similarly, Sri Lanka is among the top ten sources of tourists visiting India.
• Cooperation in civil aviation:
  • To enhance connectivity between the two nations India and Sri Lanka entered into an Open Sky Agreement enabling Sri Lankan Airlines to operate unlimited number of flights to six Indian airports.
  • Sri Lankan airlines is also the largest foreign carrier in India and was operating over 100 flights per week.
• Currency swap agreement:
  • RBI has agreed to a $400 million currency swap facility for Sri Lanka till November 2022, under the SAARC Currency Swap Framework 2019-22.

Political relations:

• Diplomatic engagements between India and Sri Lanka have evolved over decades – going from interventionism between 1983-1989 to distancing with displeasure between 1990-2014 to cordial post 2015.
• India’s ‘Neighbourhood First’ policy towards Sri Lanka had resonated with Sri Lanka’s ‘India First’ foreign and security policy in 2020.

Civil Nuclear Cooperation:

• In 2015, a bilateral agreement on Civil Nuclear Cooperation was signed between two countries.

Defence and Security Cooperation:

• Over the years, the two sides have steadily increased their military cooperation. They conduct Joint Military ('Mitra Shakti') and Naval exercise (SLINEX).

Development assistance:

• Sri Lanka is a major recipient of development assistance from India. India’s overall commitment stands close to US$ 3 billion, out of which around US$ 560 million are purely in grants. Ex: Indian Housing Project’ and ‘Emergency Ambulance Service’ 

Cultural relations:

• The Indian Cultural Centre in Colombo actively promotes awareness of Indian culture by offering classes in Indian music, dance, Hindi and Yoga.
• In 2020, India announced USD 15 million grant for promotion of Buddhist ties with Sri Lanka.

ISSUES IN RELATION:

• Disagreement over the 13th Amendment of the Constitution:
  • 13th amendment sought to grant regional autonomy as a political solution to the Sinhalese-Tamil conflict. 
  • The 13th amendment emerged from the July 1987 Indo-Lanka Accord to disarm the LTTE. Successive Colombo governments have been hostile to any power-sharing with the Tamil minorities and have not fully implemented this amendment.
• Tamil issue:
  • The UN estimates that about 40,000 Tamil civilians were massacred by the military in the final months of Colombo’s war against the LTTE that ended in May 2009.
• India did not support Sri Lanka in UHRC:
  • India in March 2021 abstained from a crucial vote on Sri Lanka’s rights record at the United Nations Human Rights Council.
• China factor
  • China’s deep pockets are evident in the Colombo International Financial Center, Colombo-Kandy highway, oil refineries, and Colombo Port City (It is an important component in Beijing’s Belt and Road Initiative).
• Chinese debt trap: As of June 2019, China’s loans to the Sri Lankan public sector amounted to 15% of the central government’s external debt, making China the largest bilateral creditor to the country.
• Pro-china governments: Former President Mahinda Rajapakse’s close relations with Beijing provided his government with financial assistance and military hardware from China
• Downturn in economic co-operations:
  • Sri Lanka scrapped a 2019 agreement with India and Japan for operating the East Coast Terminal (ECT):
    • The ECT project was crucial for India because more than two-thirds of trans-shipment at this port is tied to India, making it an important trade and connectivity link. 
    • India unilaterally terminated the India-Sri Lanka Bilateral Investment Treaty (BIT) in 2017.
• Fisherman issue:
  • Notwithstanding the 1974 Indo-Lanka Maritime Boundary Agreement, Indian fishermen tend to cross the maritime border into Sri Lanka to Katchatheevu islands, which in turn leads to assaults by the Sri Lankan Navy.

WAY FORWARD:

• Economic support: In the long run, India should finalize negotiations on Comprehensive Economic Partnership Agreement (CEPA) and Economic and Technology Co-operation Agreement (ETCA).
• Leverage regional platforms to foster cooperation: Regional platforms like the BIMSTEC and the Indian Ocean Rim Association could be leveraged to support Sri Lanka’s recovery.
• Resolve fishermen issues efficiently: India and Sri Lanka have agreed to set up a Joint Working Group (JWG) as the mechanism to help find a permanent solution to the fishermen issue. 
• Security cooperation: Both countries should strengthen cooperation in areas of counter-terrorism, counter-radicalisation and drug trafficking, through measures like regular intelligence sharing and frequent joint security exercises. India must also push for reconciliation efforts for the Tamils while remaining sensitive to Lanka’s security concerns
• Leveraging India’s soft power: India must employ its cultural aspects like diaspora, films, music, and people-to-people interaction to strengthen relations with Sri Lanka. Ex: Expanding the Indian Premiere League (IPL) to Sri Lanka in partnership with Lanka Premier League (LPL) will encourage people-to-people contact and boost tourism.

Strengthening Indo-Sri Lankan relations is vital for regional stability and mutual prosperity, necessitating a balanced approach that respects both nations' strategic interests and cultural ties.

PRACTICE QUESTION

Q: Elaborate on the key challenges that have affected India-Sri Lanka bilateral relations. Also highlight the potential opportunities for cooperation and collaboration between the two countries, to foster a stronger and more mutually beneficial relationship.(15marks, 250words)