Context:
Recently, the prime minister of India travelled to Sri Lanka for a two-day visit after completing a visit to Thailand for the 6th BIMSTEC Summit.
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Prime Minister Narendra Modi’s “visit underscores the enduring relationship encapsulated by the theme ‘Friendship of centuries, commitment to a prosperous future’, further solidifying the bonds between India and Sri Lanka” as per the official statement of Sri Lanka’s President office.
The Prime Minister of India was awarded with the ‘Sri Lanka Mitra Vibhushana’ the country’s highest honour given to foreign leaders. This is the first time an Indian leader has been given this award.
Both the leader virtually participated in the groundbreaking ceremony of the 120 MW Sampur Solar Power Plant and witnessed the signing of multiple cooperation agreements.
They also virtually inaugurated 5000 rooftop units installed at religious places across Sri Lanka and a temperature-controlled warehousing facility at Dambulla.
Prime Minister Modi also visited the Jaya Sri Maha Bodhi temple in the historic city of Anuradhapura and paid respects at the revered Buddhist shrine.
- The sacred Bodhi tree at the temple is believed to have grown from a Bo sapling brought to Sri Lanka by Sangamitta Maha Theri, daughter of Emperor Ashoka, from India in the 3rd Century BCE.
Key outcomes of the visit:
7 MoU signed between the two nations:
- For the Implementation of High Voltage Direct Current (HVDC) Interconnection for Import/Export of Power.
- On Cooperation in the Field of Sharing Successful Digital Solutions Implemented at Population Scale for Digital Transformation.
- MoU signed between India, Sri Lanka, and the United Arab Emirates for Cooperation in the Development of Trincomalee as an Energy Hub.
- On Defence Cooperation.
- On Multi-sectoral Grant Assistance for Eastern Province
- On Cooperation in the Field of Health & Medicine.
- On Pharmacopoeial Cooperation.
India-Sri Lanka relations
- Sri Lanka has a central place in India’s ‘Neighbourhood First’ policy and MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) vision.
- The merchandise trade between India and Sri Lanka was USD 5.54 billion in FY 2023-24, with India’s exports at USD 4.11 billion and Sri Lanka’s exports at USD 1.42 billion.
- As per the Central Bank of Sri Lanka, India is also one of the largest contributors to Foreign Direct Investment (FDI) in Sri Lanka, with a cumulative investment of USD 2.25 billion till 2023, with USD 198.1 million in 2023 alone.
- The India-Sri Lanka Free Trade Agreement (ISFTA) was signed in 1998 and came into force in March 2000.
- India has provided multi-faceted assistance to Sri Lanka, close to USD 4 billion, during the economic crisis in 2022.
- India and Sri Lanka military exercises: Mitra Shakti (a joint military exercise), SLINEX (a naval exercise) and MILAN the multilateral naval exercise by the Indian Navy.
- Both countries share multiple groupings like BIMSTEC, SAARC and Colombo Security Conclave.