Sri Lanka’s President Anura Dissanayake made Delhi his first port of call a month after winning the parliamentary elections on the island. The joint statement issued on Monday at the end of his talks with Prime Minister Modi, saw three key takeaways:
Dissanayake and Modi have agreed to work towards an “investment driven partnership” rather than continue with the debt-driven models that saw Sri Lanka’s economy collapse two years ago;
Broaden the 24-year-old bilateral free trade agreement with the focus on technology, payments in Indian and Sri Lankan rupees and a social security agreement;
A defence cooperation agreement that would augment the island’s capabilities with proper platforms and assets, training and capacity building for the Lankan military, joint exercises, help with maritime surveillance and a comprehensive defence dialogue.
In that context, an important statement from Sri Lanka’s Dissanayake that “Prime Minister Modi assured us full support and he also assured us that he will always protect the territorial integrity and sovereignty of Sri Lanka.”
Also his commitment that Sri Lankan soil would not be used for any anti-Indian activities, a euphemism for China. How that pans out will be closely watched from Delhi.
Modi, while confirming that a defence agreement with Colombo was in the works, underscored “We believe that the Colombo Security Conclave is an important platform for regional peace, security and development. Under this cooperation will be enhanced on maritime security, counter-terrorism, cyber-security, fight against smuggling and organised crime, humanitarian assistance and disaster relief.”
The joint statement had some other interesting nuggets of information in the context of the way forward:
The thorny issue of Indian fishermen illegally fishing in Sri Lankan waters came up with the commitment by Dissanayake and Modi to avoid “any aggressive behaviour or violence” and continue the bilateral dialogue until a resolution is found.
As part of debt-restructuring, India has provided over $20 million to cover payments by Colombo for various projects. This is separate from the $4 billion extended earlier that covered emergency financing and forex support.
India will explore the restoration of Kankesanthurai port and there are plans to resume ferry services between Rameswaram in Tamil Nadu to Talaimannar.
India will help Sri Lanka set up a digital public infrastructure including the Unique Identity Project
A high-capacity power grid linking the two countries is being studied, also a three-way (including UAE) for a multi-product pipeline that would ensure reliable energy supplies and plans for a wind farm could in the Palk Straits.
India will speed up work on phases three and four of a project involving the building of 1300 houses for plantation workers across ten districts. Most if not all of these workers are of ethnic Tamil origin.
India is committed to building 60,000 houses of which 46,000 have been built and handed over. A multi-speciality hospital is also being built in Dickoya in the central province.
