SL President’s Visit to India

SL PRESIDENT’S VISIT TO INDIA

• Date: 16 December 2024
• Location: New Delhi, India
• Leaders Involved:
  • Prime Minister of India: Narendra Modi
  • President of Sri Lanka: Anura Kumara Dissanayake
• Anura Kumara Dissanayake’s visit to India, his first overseas trip as Sri Lanka’s president, has come at a pivotal moment for the relationship between the two countries.
• The visit could be a turning point in strengthening economic and strategic ties between India and Sri Lanka, given Dissanayake’s strong political mandate.

DISSANAYAKE’S POLITICAL MANDATE

• Dissanayake, from the National People’s Power (NPP) party, won a decisive victory in the 2024 presidential and 2024 parliamentary elections, giving him a broad mandate to strengthen foreign relations, particularly with India.
• The previous fragmented governments in Sri Lanka made it difficult for Sri Lanka to follow through on commitments, but with Dissanayake’s stable leadership, the potential for deeper cooperation is now greater.

KEY OUTCOMES

Bilateral Partnership and Mutual Commitment

• Cultural and Civilizational Ties:
  • The leaders reaffirmed the historical and enduring cultural, civilizational, and geographical ties between the two nations.
  • They highlighted the importance of people-to-people connectivity at the core of the relationship.
• Sri Lanka’s Economic Crisis Support:
  • President Disanayaka expressed deep gratitude for India’s unwavering support during Sri Lanka’s 2022 economic crisis, noting India’s critical role in stabilizing Sri Lanka’s economy.
• Prime Minister Modi’s Assurance:
  • Modi reiterated India’s commitment to supporting Sri Lanka’s economic recovery, highlighting Sri Lanka’s importance in India’s Neighbourhood First Policy and the SAGAR (Security and Growth for All in the Region)

Political and Diplomatic Engagement

• Strengthening Political Ties:
  • The leaders acknowledged the increased political exchanges over the past decade and agreed to intensify political engagement at the highest levels, including leadership and ministerial exchanges.
• Parliamentary Exchanges:
  • Both leaders emphasized the importance of regular parliamentary exchanges, encouraging shared expertise in governance and strengthening democratic practices.

Development Cooperation

• India’s Assistance to Sri Lanka’s Socioeconomic Growth:
  • Both leaders recognized the significant role India played in supporting Sri Lanka’s socioeconomic development, particularly during the 2022 economic crisis.

• Support During Debt Restructuring:
  • President Disanayaka thanked India for its decision to provide grant assistance for projects originally financed through Lines of Credit (LoC), significantly reducing Sri Lanka’s debt burden.
• Shift from Debt-Driven Models:
  • Agreement was reached on transitioning from debt-driven financial models to sustainable investment-led partnerships for economic recovery, particularly in renewable energy, infrastructure, and social welfare.

Specific Development Projects and Cooperation

• Ongoing Critical Projects:
  • Indian Housing Project (Phases III & IV)
  • Three Islands Hybrid Renewable Energy Project
  • High Impact Community Development Projects across Sri Lanka
  • Solar Electrification of Religious Places in Sri Lanka
  • Projects aimed at the Indian Origin Tamil Community in Sri Lanka’s Eastern Province
• Both sides agreed to fast-track the completion of these projects and explore new areas of cooperation based on Sri Lanka’s needs.

Training and Capacity Building

• Training for Civil Servants:
  • India and Sri Lanka agreed to train 1,500 Sri Lankan civil servants across multiple ministries over the next five years, utilizing India’s National Centre for Good Governance.
• Expanded Training Programs:
  • Discussions included expanding training efforts in civil administration, defense, and legal sectors to enhance Sri Lanka’s institutional capacity.

Debt Restructuring and Economic Support

• Financial Assistance During Crisis:
  • President Disanayaka expressed gratitude for India’s USD 4 billion support, which included emergency financing and foreign exchange assistance to stabilize Sri Lanka’s economy.
• India’s Role in Debt Restructuring:
  • India’s leadership role as a co-chair in the Official Creditors’ Committee (OCC) played a key role in resolving debt restructuring discussions swiftly.
• Grant Assistance:
  • India extended USD 20.66 million to help Sri Lanka settle payments for completed projects under Lines of Credit (LoC), reducing the overall debt burden.
• Investment-led Recovery:
  • Both sides agreed on moving towards investment-driven recovery, particularly in sectors like renewable energy, infrastructure, and sustainable social welfare.

Building Connectivity

• Importance of Connectivity:
  • Enhanced connectivity was identified as key to boosting economic growth, with a focus on the complementarities between India and Sri Lanka’s economies.
• Passenger Ferry Services:
  • The leaders expressed satisfaction at the resumption of ferry services between Nagapattinam (India) and Kankesanthurai (Sri Lanka).
  • They agreed to work towards restarting ferry services between Rameswaram (India) and Talaimannar (Sri Lanka) to enhance people-to-people connectivity and tourism.
• Port Rehabilitation Project:
  • Discussions were held on the rehabilitation of Kankesanthurai Port with Indian assistance to enhance maritime trade and connectivity.

Energy Development

• Energy Security Cooperation:
  • The leaders acknowledged the importance of reliable energy access for economic growth and agreed to strengthen cooperation in the energy sector, especially renewable energy.
• Solar Power Project in Sampur:
  • Agreement was reached to expedite the implementation of the solar power project in Sampur, expanding its capacity based on Sri Lanka’s energy requirements.
• LNG and Power Grid Interconnection:
  • Both countries agreed to explore the supply of Liquefied Natural Gas (LNG) from India to Sri Lanka and develop a high-capacity power grid interconnection.
• Trincomalee Tank Farms Development:
  • Both leaders reaffirmed their support for the ongoing development of Trincomalee Tank Farms, which aims to transform it into a regional energy and industrial hub, utilizing its strategic location.

People-Centric Digitization

• India’s Digital Governance Experience:
  • President Disanayaka expressed interest in replicating India’s successful people-centric digital governance initiatives, such as Aadhaar, GeM portal, and Unified Payments Interface (UPI) in Sri Lanka.
• Sri Lanka Unique Digital Identity (SLUDI):
  • Both sides agreed to expedite the SLUDI project to improve government service delivery and digital inclusion in Sri Lanka.
• Digital Public Infrastructure (DPI):
  • Discussions included collaboration on Digital Public Infrastructure (DPI), leveraging India’s established systems like DigiLocker, and facilitating cross-border payments using UPI.

Education and Technology Cooperation

• Human-Resource Development:
  • Both leaders agreed to enhance cooperation in research and development (R&D), technology, and educational collaboration to support Sri Lanka’s growth.
• Joint R&D Initiatives:
  • Key areas for joint research include agriculture, aquaculture, healthcare, and the digital economy.
• Educational Cooperation:
  • Promotion of collaboration between educational institutions in India and Sri Lanka, focusing on knowledge exchange, joint research, and capacity-building.

Trade and Investment Cooperation

• India-Sri Lanka Free Trade Agreement (ISFTA):
  • The leaders emphasized the progress under the ISFTA and committed to further enhancing trade relations, particularly focusing on increasing trade volume and leveraging India’s growing economy.
• INR-LKR Trade Settlements:
• Discussions included expanding trade in Indian Rupees (INR) and Sri Lankan Rupees (LKR) to facilitate smoother transactions.
• Social Security Agreement:
• Both sides agreed to continue discussions on finalizing a Bilateral Social Security Agreement to protect the rights of workers and enhance social welfare coordination.

Agriculture and Animal Husbandry

• Dairy Sector Cooperation:
  • The ongoing cooperation aimed at developing Sri Lanka’s dairy sector was highlighted, with the goal of achieving self-sufficiency and improving nutritional security.
    • Agricultural Modernization:
      • Both leaders agreed to form a Joint Working Group to explore strategies for modernizing Sri Lanka’s agriculture, focusing on sustainable farming and agro-tech solutions.

Strategic and Defence Cooperation

• Shared Security Interests:
  • Both leaders reaffirmed the importance of mutual trust and transparency in addressing common security challenges in the Indian Ocean Region (IOR).
• Maritime Security Cooperation:
  • India provided vital support to Sri Lanka, including Dornier Aircraft for maritime surveillance and Maritime Rescue and Coordination Centre
• Defense Cooperation:
  • Ongoing cooperation was strengthened through defense training programs, joint naval exercises, and defense assistance to enhance Sri Lanka’s maritime capabilities.
• Joint Exercises and Maritime Surveillance:
  • Both sides agreed to continue joint maritime operations, with a focus on narcotics trafficking and other security concerns. Cultural and Tourism Development
• Strengthening Cultural Ties:
  • The leaders stressed the importance of their shared cultural and geographical ties, agreeing to enhance cultural exchanges, especially between religious institutions.

• Tourism Development:
  • Both nations agreed to work on joint initiatives to boost tourism infrastructure, with India offering investment in Sri Lanka’s tourism
• New Air Routes:
  • Discussions were held on increasing air connectivity between Chennai and Jaffna, as well as other tourist destinations.

Fisheries Issues

• Addressing Fisheries Disputes:
  • The leaders acknowledged the ongoing fisheries disputes between Indian and Sri Lankan fishermen.
  • They committed to finding humanitarian solutions through dialogue and cooperation under the 6th Joint Working Group on Fisheries.

Regional and Multilateral Cooperation

• Shared Maritime Security Interests:
  • Both sides reaffirmed their commitment to a free, open, and secure Indian Ocean and agreed to work closely within regional frameworks like the Indian Ocean Rim Association (IORA) and the Colombo Security Conclave.

• Support for BRICS Membership:
  • Sri Lanka formally requested India’s support in its bid for membership in the BRICS bloc.
• UNSC Candidature:
  • Sri Lanka assured India of its full support for India’s 2028-29 non-permanent seat bid on the United Nations Security Council (UNSC).

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