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• Sri Lankan President Ranil Wickremesinghe made an official visit to India last month. It was his first trip to India since taking over as president of the Indian Ocean Island state. Wickremesinghe came to power amid social and political upheaval as Sri Lanka went through its worst economic crisis last year.

Central idea

• The recent visit of Sri Lankan President Ranil Wickremesinghe to New Delhi has brought about a series of significant bilateral agreements that hold the potential to fortify the Sri Lankan economy against the unprecedented economic shocks experienced last year. This visit has laid the foundation for numerous projects aimed at promoting connectivity and catalyzing prosperity under the umbrella of the India-Sri Lanka Partnership Vision.

Significance of the Visit for Sri Lanka

• Economic Recovery: The bilateral agreements inked during the visit focus on reinforcing Sri Lanka’s economy after the severe economic challenges of the past year. These agreements promise sector-specific solutions in energy, fuel, and forex management, which are crucial for stabilizing and revitalizing the economy.
• Connectivity and Prosperity: The joint statement, titled ‘Promoting Connectivity, Catalyzing Prosperity,’ encapsulates the essence of the agreements. These initiatives aim to enhance connectivity through projects like the land bridge, maritime connections, and air travel. These endeavors are expected to promote regional trade and economic growth.
• Energy Security: Agreements related to petroleum infrastructure, power grids, and hydrocarbon exploration are poised to address Sri Lanka’s energy security concerns. By ensuring a stable energy supply, these initiatives can safeguard against future economic shocks stemming from energy vulnerabilities.
• Tourism and People-to-People Contacts: The commitment to bolster bilateral tourism and encourage people-to-people interactions between the two nations has the potential to foster cultural exchange, boost economic activity, and strengthen ties between citizens.
• Ethnic Reconciliation: Acknowledging the ethnic issue in Sri Lanka and the commitment to implementing the 13th Amendment and holding Provincial Council Elections reflect India’s support for Sri Lanka’s pursuit of a peaceful and inclusive resolution to its internal challenges.

Significance of the Visit for India

• For India, President Wickremesinghe’s visit holds strategic importance, aligning with its ‘Neighbourhood First’ policy and broader regional objectives:

• Economic Partnerships: The agreements signed during the visit open doors for Indian investments and economic engagement in Sri Lanka. These partnerships contribute to India’s economic growth and influence in the region.
• Enhanced Connectivity: The connectivity initiatives outlined in the joint statement align with India’s efforts to strengthen regional connectivity, expand trade networks, and promote economic integration in the Indian Ocean region.
• Energy Cooperation: Collaborative energy projects, such as petroleum pipelines and power grid interconnections, enable India to play a role in ensuring Sri Lanka’s energy security. This cooperation fosters goodwill and strengthens diplomatic ties.
• Regional Balance: The visit allows India to counterbalance other regional players and maintain its strategic influence in the Indian Ocean. Strengthening ties with Sri Lanka is crucial for regional stability and security.
• Cultural and People-to-People Exchanges: The commitment to promoting bilateral tourism and facilitating people-to-people contacts enhances India’s cultural diplomacy and strengthens the bond between the two countries.
• Geostrategic Significance: Strengthening ties with Sri Lanka serves India’s interests in maintaining a strong presence in the Indian Ocean and countering China’s growing influence in the region.

Outcomes of the visit

1. Economic Agreements and Initiatives:

• Bilateral agreements were signed to fortify Sri Lanka’s economy against economic shocks. These agreements encompass various sectors, including energy, fuel, and forex management.
• Cooperation in economic development projects in the Trincomalee District was emphasized, aiming to elevate Trincomalee as a hub for industry and economic activities.

2. Energy and Infrastructure Development:

• Feasibility studies for a petroleum pipeline from southern India to Sri Lanka were agreed upon, focusing on ensuring a reliable supply of energy resources.
• Collaboration on high-capacity power grid interconnection for bidirectional electricity trade between Sri Lanka and BBIN countries was highlighted to cut electricity costs and enhance forex earnings.
• Acceleration of the Indian public sector NTPC’s Sampur solar power project and LNG infrastructure projects were addressed to contribute to energy sufficiency.

3. Connectivity and Trade:

• Initiatives to promote maritime connectivity included the Kankesanthurai-Nagapattinam ferry service and the resumption of ferry services between Rameswaram and Talaimannar.
• Expansion of air connectivity, including resuming flights between Jaffna and Chennai and exploring connectivity to other destinations, was discussed to enhance people-to-people ties and boost trade.

4. Investment Facilitation and Currency Settlements:

• Plans to facilitate Indian investments in the divestment of state-owned enterprises and economic zones were discussed to enhance trade and economic growth.
• The designation of the Indian rupee as the currency for trade settlements between the two countries was emphasized to strengthen commercial linkage and reduce dependency on the US dollar.

5. Ethnic Reconciliation and Political Engagement:

• Discussions on the ethnic issue in Sri Lanka led to expressions of support for the implementation of the 13th Amendment and Provincial Council Elections, promoting equality and peace for the Tamil community.

6. Geostrategic Implications:

• The visit reaffirmed India’s ‘Neighbourhood First’ policy and strategic engagement with Sri Lanka, strengthening India’s influence in the region and supporting regional stability.

7. Collaboration with the Private Sector:

• President Wickremesinghe explored collaborative projects with Indian industrialist Gautam Adani, focusing on initiatives like the development of Colombo Port West Container Terminal and renewable energy projects.

Addressing Sensitive Issues

• Fishermen’s Dispute:
• The longstanding issue of fishermen from both India and Sri Lanka straying into each other’s territorial waters for fishing has led to conflicts and arrests.
• This issue has historical and economic dimensions, as the livelihoods of many fishermen are at stake.
• Resolving this dispute requires delicate negotiations and mutual understanding.
• Ethnic Issue:
• This refers to the complex and often sensitive matter of the relationship between the majority Sinhalese community and the minority Tamil community in Sri Lanka.
• The decades-long ethnic conflict in Sri Lanka, particularly the civil war involving the Liberation Tigers of Tamil Eelam (LTTE), has left deep scars.
• The 13th Amendment to the Sri Lankan Constitution, facilitated by India, aimed to provide devolution of power to provincial councils, particularly in Tamil-majority areas, as a means to address some of the ethnic tensions.
• However, the complete resolution of the ethnic issue requires careful consideration of political, cultural, and historical factors.

Way forward

• Enhanced Connectivity and Trade:
  • Prioritize and implement connectivity projects, such as the land bridge and maritime connectivity, to boost trade, tourism, and people-to-people interactions.
  • Strengthen air connectivity to facilitate easier travel and economic exchange.
• Energy Security and Sustainability:
  • Expedite feasibility studies for the petroleum pipeline and power grid interconnection to ensure energy security and stability.
  • Collaborate on renewable energy projects to promote sustainability and reduce dependency on traditional energy sources.
• Economic Cooperation and Investments:
  • Facilitate Indian investments in Sri Lanka’s divestment of state-owned enterprises and economic zones to drive economic growth and job creation.
  • Expand bilateral trade and encourage the use of designated currencies for trade settlements.
• Cultural Exchanges and Youth Engagement:
  • Promote cultural exchanges and youth programs to deepen cultural understanding and foster lasting connections.
  • Create academic and research collaborations to share knowledge and expertise.
• Sensitive Issue Resolution and Diplomatic Dialogue:
  • Continue diplomatic efforts to resolve sensitive issues, such as the fishermen’s dispute and the ethnic question.
  • Engage in inclusive dialogues and implement existing agreements for lasting solutions.

Conclusion

• The New Delhi visit of Sri Lankan President Ranil Wickremesinghe marks a significant step toward bolstering bilateral relations between India and Sri Lanka. The multifaceted agreements encompass connectivity, energy security, trade, and cultural exchange. As both countries work towards realizing their shared goals, these initiatives promise to strengthen regional prosperity and cooperation.

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