Consensus and Challenges: Revisiting India-Sri Lanka Ties

This event is part of the series “The Neighbourhood Scope,” a monthly feature of the Strategic Studies Programme that intends to rekindle key conversations, questions, and debates concerning India’s neighbourhood.

India and Sri Lanka are arguably at their best phase of bilateral relations. Sri Lanka's descent into a multi-faceted crisis in late 2021 has ironically injected much-needed pragmatism and optimism into this relationship. Over the last 4 years, India has offered 4.5 billion USD in assistance and nurtured non-partisan relations with all major parties. It is also contributing to Sri Lanka's recovery through grants and investments, and by also inviting extra-regional powers, like the USA, Russia, and the UAE, to invest in the country. On the other hand, Sri Lanka seems to have a better understanding of India's red lines, security concerns, and sensitivities. Both countries are thus keen on strengthening this partnership. They have finalized an Economic Partnership Vision document to promote connectivity in maritime, energy, economic, and people-to-people sectors. They even signed their first MoU on defense cooperation during Prime Minister Narendra Modi's recent visit to Sri Lanka. There seems to be a broader consensus on the direction of bilateral ties and expectations. However, as the Indian Ocean Region grows important, several challenges lay ahead and major irritants remain unresolved.

What are the key consensus and challenges that India and Sri Lanka face? Despite much progress in ties, why are major irritants still unresolved? How will Sri Lanka's economic recovery impact its geo-economics and bilateral relations? Who are Sri Lanka's major partners and players, and will they have the appetite to stay invested in the country as we witness significant realignments in the world order?