India–Sri Lanka relations span over 2,500 years, anchored in shared civilisational, cultural and religious ties. Formal diplomatic relations were established in 1948, and since then, the relationship has oscillated between cooperation and strain, shaped by ethnic issues, security concerns, and regional geopolitics.
Evolution of India–Sri Lanka Relations:
Ancient to Early Post-Independence Period:
- Cultural links date back to the 3rd century BCE, when Buddhism was introduced to Sri Lanka by Mahinda, son of Ashoka.
- Post-independence ties were cordial but strained by the Tamil minority issue and citizenship questions of Indian-origin Tamils.
Conflict Phase (1980s–1990s):
- India intervened during the Sri Lankan civil war through the Indian Peace Keeping Force (IPKF) under the Indo–Sri Lanka Accord (1987).
- Relations deteriorated after the assassination of Liberation Tigers of Tamil Eelam leader-linked events, including the killing of Rajiv Gandhi (1991), after which India banned the LTTE.
Economic and Strategic Re-engagement (2000s onwards):
- The India–Sri Lanka Free Trade Agreement (ISFTA, 2000) boosted trade to USD 5.54 billion in FY 2023–24.
- Under India’s Neighbourhood First policy, ties deepened further, especially during Sri Lanka’s 2022–23 economic crisis, when India acted as the first responder.
Recurring Challenges in India–Sri Lanka Relations:
1. Political Challenges:
- Tamil Ethnic Issue & 13th Amendment: Sri Lanka’s slow and partial implementation of the 13th Amendment on devolution remains a major irritant.
- Trust Deficit from Past Intervention: India’s involvement especially the IPKF intervention (1987–90) and subsequent events including the assassination of Rajiv Gandhi by the Liberation Tigers of Tamil Eelam in 1991, left a legacy of suspicion.
2. Security Challenges:
- Chinese Strategic Presence: China’s control of Hambantota Port under a 99-year lease (2017) and frequent visits of Chinese research and naval vessels raise concerns over maritime surveillance close to India’s coastline.
- Maritime Security & Smuggling: The porous maritime boundary facilitates narcotics trafficking, illegal migration and arms smuggling.
3. Economic Challenges:
- Trade Imbalance & ETCA Deadlock: India enjoys a persistent trade surplus of USD 2.7 billion in FY 2023–24, leading to Sri Lankan fears of market domination. This has stalled progress on the Economic and Technology Cooperation Agreement (ETCA).
- Debt Dependence: Sri Lanka’s heavy reliance on external borrowing, especially from China has constrained its economic autonomy.
Way Forward: Recalibrating the Partnership
- Facilitate Political Reconciliation with Sensitivity: India should continue advocating devolution and minority rights through quiet diplomacy, avoiding public pressure.
- Deepen Maritime Security Cooperation: Expand joint naval exercises, intelligence-sharing and mechanisms like the Colombo Security Conclave to ensure regional security.
- Rebalance Economic Engagement: Fast-track ETCA with safeguards for Sri Lankan domestic sectors, while encouraging Indian investments that generate local employment.
- Resolve the Fisheries Issue Humanely: Institutionalise cooperation through the Joint Working Group on Fisheries, promote sustainable fishing practices, and move towards licensed or regulated access mechanisms.
- Cultural Diplomacy: Leverage Buddhist and Ramayana circuits, education exchanges, tourism and digital connectivity to build trust beyond governments.
Conclusion:
India–Sri Lanka relations are moving from crisis-driven engagement to structured strategic partnership. Balancing security interests, economic integration, and mutual sensitivity is essential to ensure that the relationship remains a pillar of stability in the Indian Ocean Region.
‘+1’ Value Addition:
- During Sri Lanka’s sovereign default, India was the first responder, providing nearly USD 4 billion in credit.
- India’s cumulative FDI in Sri Lanka is over USD 2.25 billion making India one of Sri Lanka’s top investors.
- In 2024, Sri Lanka adopted UPI QR payments, facilitating practical people-to-people integration.
- The Jaffna Cultural Centre (2023), built with Indian grant funds (USD 11 million) strengthens cultural ties.
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