Building Bridges with Sri Lanka

Prime Minister Modi’s landmark visit to Sri Lanka signals new era in bilateral ties. India and Sri Lanka share a common history and geography. The two nations are intertwined through their cultures and economies. After a brief period of lull, they are once again enjoying good relations. This was evident during Prime Minister Modi’s recent visit to the island nation. Prime Minister Narendra Modi’s three — day visit to Sri Lanka from April 4 to 6 has marked a significant milestone in Indo-Lankan relations, as both nations inked key agreements across defence, energy, and economic sectors, laying a robust foundation for deeper regional cooperation and mutual growth.

Modi’s visit comes at a crucial time for Sri Lanka, which is still grappling with the aftershocks of its 2022 economic crisis. In a strong message of regional solidarity, India announced fresh grant assistance worth LKR 2.4 billion for developmental projects in Sri Lanka’s eastern provinces. The Prime Minister also reaffirmed India’s steadfast commitment to supporting Colombo’s economic recovery. Prime Minister Modi, in a joint statement with Sri Lankan President Anura Kumara Dissanayake, said that India has converted loans worth $100 million into grants, and that the India–Sri Lanka bilateral debt-restructuring agreement will give relief and immediate help to the people of Sri Lanka.

One of the most notable outcomes of the visit is the first-ever comprehensive defence cooperation agreement between the two countries. The landmark deal will see enhanced military collaboration, including structured knowledge exchange programmes, tri-services training, high-level dialogues, and joint research in defence technology. India already provides specialised training to around 750 Sri Lankan military personnel annually, and both nations frequently engage in joint exercises. The new agreement formalises this longstanding cooperation, signalling a strategic realignment in the Indian Ocean Region. Given the historical backdrop of the Indian Peace Keeping Force (IPKF) operations in Sri Lanka during the late 1980s, the agreement reflects a mutual willingness to move forward and foster trust through collaboration.

A second major highlight of the visit was the signing of an agreement to connect the electricity grids of India and Sri Lanka, enabling energy trade between the two countries. This is set to be a game changer for energy security and integration in the region. Further strengthening trilateral cooperation, a strategic agreement between India, Sri Lanka, and the United Arab Emirates was signed to develop Trincomalee as a regional energy hub. This initiative aligns with India’s broader “MAHASAGAR” vision, which seeks to ensure peace, prosperity, and partnership across the Indian Ocean Region. India’s role in co-chairing the Official Creditors Committee for Sri Lanka, coupled with its $4 billion lifeline during the height of the island’s crisis, has been instrumental in paving the way for IMF support. Modi’s announcement of reduced interest rates on Sri Lankan debt and the conversion of previous loans into grants highlights a commitment not just to recovery, but to long-term economic stability.

Strategic concerns also featured in the discussions between the two leaders. Modi expressed gratitude to President Dissanayake for respecting India’s security interests — especially in light of previous tensions over the docking of Chinese research vessels at Sri Lankan ports. The moratorium imposed in December 2023 on such visits has contributed to easing bilateral strains. PM Modi was conferred the ‘Sri Lanka Mitra Vibushana,’ one of Sri Lanka’s highest civilian honours for foreign dignitaries. He becomes only the fourth international leader and the first in over a decade — to receive the award.

With strategic partnerships deepening and mutual trust building, Indo–Sri Lankan relations are poised for a transformative phase.