India and Sri Lanka are set to sign a landmark defence cooperation agreement during Prime Minister Narendra Modi’s visit to the island nation from April 4 to 6, marking a significant step in bilateral security ties. This framework agreement, the first of its kind since the Indian Peace Keeping Force (IPKF) intervention in the late 1980s, comes amid growing security concerns in the Indian Ocean region.
Revamping Defence Ties
The groundwork for this historic agreement began soon after Sri Lankan President Anura Kumara Dissanayake’s visit to New Delhi in December 2023—his first foreign trip after assuming office in September last year. The agreement will include provisions for joint exercises, military exchanges, and maritime surveillance.
The move reflects India’s increasing focus on countering China’s growing influence in Sri Lanka, particularly at strategic locations like the Hambantota Port. The two nations have already engaged in annual defence dialogues, naval exercises, and military exchanges, but this agreement is expected to expand and formalize these efforts further.
Foreign Secretary Vikram Misri, while addressing a press briefing, confirmed that an MoU on defence cooperation will be signed, though he refrained from disclosing specific details.
Strengthening Economic Cooperation
Beyond defence, Modi’s visit will also focus on bolstering economic ties. India and Sri Lanka are expected to finalize:
- Debt restructuring and a currency swap arrangement between the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL).
- A tripartite agreement with the UAE for developing the Trincomalee oil tank farm.
- An MoU for the interconnection of power grids to enhance energy cooperation.
- A pact on digital public infrastructure, promoting collaboration in fintech and digital governance.
India has played a crucial role in Sri Lanka’s economic recovery, especially during its 2022 financial crisis, when it provided $4.5 billion in assistance. This support, along with New Delhi’s intervention in securing an IMF bailout package, has helped stabilize Sri Lanka’s economy.
Fishermen Issue on the Agenda
A long-standing issue that is expected to be discussed is the arrest of Indian fishermen by Sri Lankan authorities. PM Modi is likely to raise this matter with President Dissanayake, urging a humanitarian approach and advocating against the use of force in such incidents.
Strategic Significance
President Dissanayake’s visit to India in 2023 was seen as a diplomatic shift, considering his Janatha Vimukthi Peramuna (JVP) party’s historically anti-India stance. During that visit, he assured Modi that Sri Lanka would not allow its territory to be used against Indian interests—a significant commitment amid China’s growing presence in the region.
With this defence pact and broader economic cooperation, India is set to strengthen its position as Sri Lanka’s most reliable partner, reinforcing its “Neighbourhood First” policy while countering external influences in the Indian Ocean.
Sources By Agencies