India must offer tangible economic support—particularly through enhanced market access. A potential game-changer would be a time-bound, zero-tariff policy for Sri Lankan exports to India. By granting Sri Lankan businesses unrestricted access to the Indian market for five to 10 years, India could provide much-needed economic relief and encourage long-term trade partnerships.
This move would not only help Sri Lankan industries stabilise but also enable Indian businesses to benefit from Sri Lanka’s skilled workforce and strategic location. Greater trade integration could lead to joint ventures, supply chain efficiencies, and sectoral growth in areas such as manufacturing, IT services, and agriculture.
Despite its economic struggles, Sri Lanka retains significant advantages for investors. Its infrastructure is well-developed, with high-quality roads, ports, and connectivity that make it an attractive base for regional business expansion. Additionally, the island’s tourism sector—which is already heavily dependent on Indian visitors—offers untapped opportunities in hospitality, retail, and travel-related services.
However, perceptions about Sri Lanka’s economic stability remain a challenge. Indian media coverage of the 2022 crisis, particularly images of protests and political unrest, shaped a narrative of uncertainty. While those who visit Sri Lanka often express surprise at its orderliness, safety, and economic potential, the lingering perception of instability has deterred some investors. Changing this narrative will be crucial in attracting business interest and fostering greater commercial engagement.
For Sri Lanka, the priority is shifting from short-term financial aid to sustainable economic partnerships. Rather than relying solely on credit lines or emergency assistance, business leaders hope to see India’s support translate into long-term trade and investment opportunities. This includes Indian businesses exploring joint ventures, infrastructure projects, and industrial collaborations that can generate employment and drive economic recovery.
As India’s economic footprint in Sri Lanka grows, both countries stand to benefit. A stronger Sri Lankan economy would provide a more stable and prosperous trading partner for India, reducing dependency on aid while fostering self-sufficiency.
Gopal Bagley, India’s former High Commissioner to Sri Lanka, once described the two nations as “civilisational twins,” emphasising their deep-rooted historical and cultural ties. However, as Sri Lanka rebuilds its economy, the relationship must evolve into a modern economic partnership. Instead of the traditional “big brother-little brother” dynamic, the focus should be on mutual growth and regional economic integration.
Cricket, a shared passion between the two nations, offers an apt analogy—India and Sri Lanka thrive not as competitors but as partners in a larger ecosystem. Just as Sri Lankan cricketers find admiration and support in India, Sri Lankan businesses must now find space and opportunity in Indian markets.
As Modi arrives in Sri Lanka, all eyes will be on how India positions itself—not just as a regional leader but as a committed economic partner. A trade-first approach, rather than a purely diplomatic one, could set the stage for a more prosperous and interconnected future for both nations.
