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The Prime Minister of India and the President of Sri Lanka met in New Delhi, indicating a significant step towards strengthening relations between the two neighbouring countries.
The leaders highlighted the importance of bilateral trade, investment, and collaboration in sectors such as agriculture, dairy, and textiles.
Both leaders agreed to explore new economic cooperation opportunities, such as expanding the India-Sri Lanka Free Trade Agreement (ISFTA). They stressed investment-driven growth and improving connectivity between the two countries, especially in digital, energy, and physical infrastructure.
Both leaders discussed the rising security challenges in the Indian Ocean, especially China's growing presence. Sri Lanka's President assured India that its territory would not be used to compromise India's security.
They agreed to increase defence cooperation through joint exercises, intelligence sharing, and maritime security initiatives.
To strengthen Sri Lanka's maritime surveillance capabilities, India agreed to supply offshore patrol vessels and assist in the establishment of a Maritime Rescue and Coordination Centre in Sri Lanka.
The leaders expressed their commitment to finding a long-term solution that protects the livelihoods of affected communities. The Sri Lankan President emphasised that addressing this issue requires a collaborative approach that benefits both countries.
The Sri Lankan president expressed interest in promoting Sri Lanka's cultural heritage in India. The Indian Prime Minister highlighted the potential of the Ramayana and Buddhist Circuits to promote cultural exchange and tourism.
Both leaders agreed to explore educational cooperation, especially in research and technology, and to expand student exchange programs to strengthen ties between the younger generations of both countries.
India and Sri Lanka have a strong historical and civilisational bond that dates back over 2,500 years. Their relationship is based on mutual respect, cultural ties, and extensive interpersonal interactions.
Both countries have a long-standing partnership based on India's 'Neighbourhood First' policy and the Security and Growth for All in the Region (SAGAR) vision. Their bilateral relations have multiple dimensions and include political, economic, cultural, and security cooperation.
The value of merchandise trade between the two countries in 2023-24 was $5.5 billion, with India exporting $4.1 billion and Sri Lanka exporting $1.4 billion. India imports printed books, newspapers, pictures, vehicles, salt, sulfur, earth, stone, plaster, lime, cement, wood, and wood charcoal from Sri Lanka.
The India-Sri Lanka Free Trade Agreement (ISFTA) went into effect in 2000, significantly increasing bilateral trade.
India is one of Sri Lanka's largest foreign direct investment (FDI) contributors, with a total of about $2.2 billion by 2023.
Both countries are negotiating an Economic and Technology Cooperation Agreement (ETCA) to further strengthen bilateral trade and services.
India and Sri Lanka are improving connectivity through several types of initiatives. These include the resumption of air links between Chennai and Jaffna as of December 2022, as well as ferry services between Nagapattinam (India) and Kankesanthurai (Sri Lanka) beginning in October 2023.
India has extended a USD 61.5 million grant for the development of Sri Lanka's KKS port, and it is interested in more connectivity projects such as a proposed multi-product pipeline and power grid interconnection.
India has committed over USD 5 billion in development assistance to Sri Lanka, including concessional loans, grants, and swap agreements. Some notable projects include the construction of 60,000 houses through the Indian Housing Project, the restoration of the Thiruketheeswaram Temple, and the establishment of a Cultural Centre in Jaffna.
India has also helped Sri Lanka during its economic crisis by extending credit and humanitarian aid. During the crisis, India provided nearly $4 billion in assistance to Sri Lanka to help it manage its finances and meet international obligations. The situation made Sri Lanka dependent on India's oil supply, and trade relations improved during this time.
India and Sri Lanka have strong defence cooperation based on mutual security interests. This collaboration includes joint military exercises such as SLINEX (Naval Exercise) and MITRA SHAKTI (Army Exercise). India is the largest source of foreign training assistance for Sri Lanka's armed forces. Both countries also collaborate on counterterrorism and security issues through platforms such as the Colombo Security Conclave.
The growing relationship between Sri Lanka and China, including port developments such as Hambantota, raises concerns about India's strategic interests.
Indian fishermen frequently cross into Sri Lankan waters, causing arrests and tensions.
Though India recognises Sri Lanka's sovereignty over Katchatheevu Island, Tamil Nadu claims it as part of India.
India has urged Sri Lanka to address the Tamil community's concerns, particularly the full implementation of the 13th Amendment, but Sri Lanka has demonstrated little commitment.
Sri Lanka's frequent political changes have an impact on the stability of bilateral relations and the implementation of cooperative projects.
Bilateral talks should be used to negotiate a permanent solution to the fishing dispute.
Signing the Comprehensive Economic Partnership could strengthen trade and economic ties.
Increasing cultural exchanges could promote goodwill among the people of both countries.
Establishing ferry services between India and Sri Lanka would encourage more people-to-people interactions.
Recognising and respecting each other's concerns, especially on the Tamil issue, can lead to a more collaborative and stable relationship.
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