Context: Recently, The President of Sri Lanka visited India on a state visit, marking his first bilateral trip to India following the recently concluded presidential and parliamentary elections in Sri Lanka.
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- Sri Lanka, as India’s closest maritime neighbor in the Indian Ocean Region, plays a central role in India’s ‘SAGAR’ vision (Security and Growth for All in the Region) and ‘Neighbourhood First’ policy.
- The visit is expected to strengthen the multi-faceted and mutually beneficial cooperation between the two countries.
Historical and Political Ties:
- Bilateral Relationship: India and Sri Lanka share a strong, over 2,500-year-old relationship with deep cultural, historical, and civilizational connections.
Trade and Commerce:
- Sri Lanka is one of India’s largest trading partners in the South Asian Association of Regional Cooperation (SAARC) countries, and India is Sri Lanka’s largest trading partner globally.
- Bilateral Trade: Trade reached USD 5.5 billion in FY 2023-24, with India exporting USD 4.1 billion and Sri Lanka exporting USD 1.4 billion.
- Investment: India is a significant contributor to FDI in Sri Lanka, with investments of approximately USD 2.2 billion, especially in energy, real estate, and telecommunications.
- Economic and Technology Cooperation Agreement (ETCA): Negotiations resumed to enhance the trade agreement.
- To enhance connectivity between the two nations India and Sri Lanka entered into an Open Sky Agreement.
Connectivity and Tourism:
- Transport Links: Air links between Chennai and Jaffna resumed in December 2022, and ferry services began between Tamil Nadu and Sri Lanka in October 2023.
- Tourism: India is the leading source of tourists, with around 3 lakh visitors in 2023.
Development Cooperation:
- Grant Assistance: India has provided USD 5 billion in loans and USD 600 million in grants for various development projects across Sri Lanka, including housing, health, and infrastructure.
- Humanitarian Support: India provided significant assistance during Sri Lanka’s 2022 economic crisis, including food, medicines, and fuel.
Defense and Security Cooperation:
- Military Cooperation: Includes training, joint exercises, and supply of military equipment. India is the largest provider of foreign training assistance to Sri Lankan armed forces.
- Maritime Cooperation: India’s Navy and Coast Guard have intervened in Sri Lankan waters during environmental crises.
- Colombo Security Conclave: A platform for regional security cooperation.
- Bilateral Exercises:
- SLINEX: Annual bilateral naval exercise between India and Sri Lanka, held alternately in both countries.
- MITRA SHAKTI: Annual bilateral army exercise, held alternately in India and Sri Lanka.
- Multilateral Exercise: Sri Lanka participates in MILAN, a multilateral naval exercise hosted by the Indian Navy.
Cultural and Academic Relations:
- Cultural Cooperation: Includes cultural centers, restoration projects, and Buddhist religious exchanges.
- Academic and Capacity Building: India offers scholarships, technical training programs, and courses to Sri Lankan students and officials.
Indian Community in Sri Lanka:
- Indian-Origin Tamils: Around 1.6 million people of Indian origin, mostly involved in agriculture (tea/rubber plantations) and business.