India and Sri Lanka to Engage In Bilateral Talks Over Key Defence Deal During PM Modi’s Visit

India and Sri Lanka are set to usher in a new phase of diplomatic and strategic partnership as Prime Minister Narendra Modi prepares for his visit to the island nation from April 4 to 6. A key highlight of this visit will be the signing of a framework agreement on defence cooperation—the first major step in this sector since India’s intervention during Sri Lanka’s civil war in the 1980s through the Indian Peace Keeping Force (IPKF). Alongside this, significant economic agreements aimed at supporting Sri Lanka’s economic recovery are also on the agenda.

This visit follows Sri Lankan President Anura Kumara Dissanayake’s trip to New Delhi in December last year and presents an opportunity to strengthen cooperation in areas such as security, energy, and infrastructure.

A Landmark Defence Cooperation Agreement

This new defence agreement is expected to deepen security collaboration between the two nations. Discussions around the framework began soon after President Dissanayake’s visit to India, and in recent days, Sri Lanka has proposed some technical amendments to the draft. The agreement is now set to be finalized during PM Modi’s visit.

India’s previous involvement in Sri Lanka’s civil war, particularly through the IPKF deployment from 1987 to 1990, had led to strained defence relations. However, in recent years, there has been a significant shift, with increasing cooperation in military exercises, maritime security, and intelligence sharing.

Foreign Secretary Vikram Misri confirmed that a Memorandum of Understanding (MoU) on defence cooperation will be signed during the visit. “It is being signed for the first time,” he stated, without revealing further details.

A joint statement issued during Dissanayake’s visit earlier highlighted India’s commitment to providing defence equipment and platforms to strengthen Sri Lanka’s military capabilities. This growing partnership comes amid India’s concerns about China’s increasing military influence in the Indian Ocean, particularly at Sri Lanka’s Hambantota Port, which is under Chinese control.

Currently, India and Sri Lanka hold annual defence dialogues between their defence secretaries, conduct naval interactions, and organize joint military exercises. The new agreement will further expand these collaborations.

Key Economic Agreements for Sri Lanka’s Recovery

In addition to defence, PM Modi’s visit will also focus on supporting Sri Lanka’s economic revival. Several important agreements are expected to be finalized, including:

• A pact between the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) for debt restructuring and extending a currency swap arrangement.
• A tripartite agreement between India, Sri Lanka, and the United Arab Emirates (UAE) for the development of the Trincomalee oil tank farm, which will boost Sri Lanka’s energy security.
• An MoU for linking the power grids of India and Sri Lanka, allowing energy trade between the two countries.
• An agreement for cooperation in digital public infrastructure, further strengthening technological ties.

Misri emphasized India’s unwavering support for Sri Lanka during its economic crisis in 2022, stating, “India was the first responder by extending $4.5 billion in assistance and played a crucial role in securing financial assurances that enabled the International Monetary Fund (IMF) to provide financial support to Sri Lanka.”

With Sri Lanka’s economy showing signs of recovery, both countries are looking to explore new avenues of economic cooperation. PM Modi’s visit is expected to promote investments and enhance connectivity in physical infrastructure, energy, and digital sectors.

Addressing the Fishermen Issue

Another pressing matter expected to be discussed during Modi’s visit is the ongoing issue of Indian fishermen being detained by Sri Lankan authorities for allegedly crossing the maritime boundary.

Foreign Secretary Misri assured that PM Modi will bring up the welfare of Indian fishermen during discussions with President Dissanayake. He stressed that India advocates for handling such issues with a humanitarian approach and avoiding the use of force against fishermen.

Strengthening Political and Strategic Relations

President Dissanayake’s decision to make India his first foreign visit after taking office was seen as a significant move, especially considering that his party, the Janatha Vimukthi Peramuna (JVP), has historically been known for its anti-India stance. However, during his visit, he assured PM Modi that Sri Lanka would not allow its territory to be used against India’s strategic interests.

As Modi becomes the first foreign leader to visit Sri Lanka under Dissanayake’s leadership, this trip will be crucial in reinforcing India’s ‘Neighbourhood First’ policy and ensuring a stable, mutually beneficial partnership between the two nations.