India-Sri Lanka Partnership: Major Boost to Ports, Logistics, Trade, and Infrastructure Cooperation

During Sri Lankan President Anura Kumara Disanayaka’s first foreign visit to India, he and Prime Minister Narendra Modi announced a series of initiatives that will boost bilateral trade, enhance physical and energy connectivity, and promote sustainable growth.

Key Infrastructure and Connectivity Highlights: Port Development: India will provide grant assistance for the rehabilitation of Kankesanthurai Port in Sri Lanka, emphasizing its strategic role in maritime trade and logistics.

Both leaders acknowledged the recent restart of the Nagapattinam-Kankesanthurai passenger ferry service and pledged to recommence the Rameshwaram-Talaimannar ferry route to further enhance sea connectivity.

Rail Infrastructure: India will support the rejuvenationof the signaling system for the Maho to Anuradhapura rail section. This investment is aimed at modernizing Sri Lanka’s rail network, boosting domestic and international trade logistics. Both the leaders reaffirmed the importance of greater connectivity, including the potential for new trade routes and energy corridors between both nations. The proposed high-capacity power grid interconnection will further integrate their energy logistics.

India and Sri Lanka underscored the immense potential for expanding bilateral trade, particularly through: Finalization of the Economic and Technological Cooperation Agreement (ETCA) to promote seamless commerce; Encouragement of INR-LKR trade settlements to ease transactions and foster smoother trade flows and through Indian investments aimed at enhancing Sri Lanka’s export potential, focusing on key sectors like agriculture, fisheries, and logistics.

Prime Minister Modi highlighted India’s $5 billion assistance to Sri Lanka, including support for ongoing development projects and debt restructuring. Both leaders emphasized transitioning from debt-driven models to investment-led partnerships, ensuring economic sustainability and mutual growth.

The India-Sri Lanka bilateral partnership on port, energy pipelines, rail modernization, and expanded shipping connectivity among others demonstrate India and Sri Lanka’s commitment to boosting regional trade, commerce, and infrastructure development.

 These initiatives are expected to transform their economic partnership, enhance import-export capabilities, and foster stronger connectivity in the Indian Ocean region. Enhanced maritime security, digital transformation, and agricultural modernization further solidify the shared vision of prosperity and development for both nations.