India and Sri Lanka Sign 7 MoUs, Including First Defence Deal

1. During Prime Minister Narendra Modi's visit to Sri Lanka, India and Sri Lanka signed seven Memorandums of Understanding (MoUs), marking significant milestones in bilateral relations.
2. Notably, the visit also witnessed the signing of the first-ever defence cooperation deal between the two nations.
3. Additionally, Prime Minister Modi was honoured with the Sri Lanka Mitra Vibhushana, the highest civilian award of Sri Lanka for foreign leaders.

Key Outcomes of the Visit

1. Defence Cooperation:
   1. A significant umbrella agreement was signed to structure ongoing defence sector cooperation in a more comprehensive and organized manner.
   2. The agreement also saw the Sri Lankan President reaffirming Sri Lanka’s commitment not to allow its territory to be used against India, addressing growing concerns over China’s regional influence.
2. Energy Cooperation: An agreement was reached for a grid connection between India and Sri Lanka for power trade. Additionally, discussions were held to develop the Trincomalee energy hub in collaboration with the UAE.
3. Cooperation in Other Sectors:
   1. India pledged support to Sri Lanka in several key areas, including digitization, health, and the development of the Eastern Province.
   2. India also agreed to lower interest rates on loans to Sri Lanka, enhancing economic cooperation.

Importance of Sri Lanka for India

Sri Lanka holds significant strategic, economic, and cultural importance for India:

1. Strategic and Geopolitical Significance:
   1. Sri Lanka plays a crucial role in India’s MAHASAGAR Vision. This initiative seeks to strengthen India’s ties with smaller nations in the Indian Ocean region, promoting mutual security and growth.
   2. MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) focuses on enhancing maritime domain awareness and curbing illegal activities in the region, ensuring the stability of critical shipping lanes.
2. Economic Significance:
   1. The India-Sri Lanka Free Trade Agreement (FTA), signed in 1998, has helped boost bilateral trade to USD 5.5 billion in the fiscal year 2023-24.
   2. India’s exports to Sri Lanka amounted to USD 4.1 billion in the same period, underscoring the strong economic ties between the two countries.
3. Cultural Ties: India and Sri Lanka share deep-rooted cultural ties, dating back to the time of Emperor Ashoka. One of the most symbolic examples is the sacred Bodhi tree at the Jaya Sri Maha Bodhi temple, which is believed to have grown from a sapling brought by Sangamitta Maha Theri, Ashoka’s daughter, from India in the 3rd Century BCE.

Challenges in India-Sri Lanka Relations

While the relationship between India and Sri Lanka has flourished in many areas, several challenges continue to impact bilateral ties:

1. Chinese Influence:
   1. China's Belt and Road Initiative (BRI) has raised concerns in India, as Sri Lanka has become a key partner in China’s regional strategy.
   2. A significant example of this is the 99-year lease of the Hambantota Port to China, which has strategic and security implications for India.
2. Tamil Ethnic Issue: The Tamil-Sinhala conflict in Sri Lanka continues to pose challenges in India-Sri Lanka relations.

• Despite progress in reconciliation efforts, there has been a delay in the implementation of the 13th Amendment to Sri Lanka's Constitution, which was meant to grant greater autonomy to the Tamil-majority regions.
• This issue has ramifications for India’s domestic politics, especially in Tamil Nadu.

3. International Maritime Boundary: Several maritime disputes remain unresolved between India and Sri Lanka, including issues related to the firing on Indian fishermen, bottom trawling, and the dispute over the Katchatheevu Island.

 

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