India Sri Lanka relations

Syllabus: General Studies Paper 2

Context:

Context: As Sri Lanka battles to revive its Covid-battered economy, New Delhi and Colombo have agreed on a four-pronged cooperation package comprising urgent food and health security, energy security, currency swap and Indian investments.

More in the news

• The short- to medium-term plan was decided during the Sri Lanka Finance Minister visit to India recently.
• Sri Lankan met his Indian counterpart Nirmala Sitharaman and External Affairs Minister S Jaishankar, among others.
• The brother of Sri Lanka’s Prime Minister and President, the Finance Minister is considered a political strategist.
• Both sides expressed satisfaction over the evolving trajectory of the bilateral relationship. During the discussions, they identified ways and means through which the existing bilateral economic relationship between the two countries could be further broadened and deepened.
• The Indian ministers expressed solidarity and reiterated that the country has always stood by Sri Lanka.
• According to the statement it was agreed that modalities to implement these objectives would be finalised within a mutually agreed timeline.
• The ministers also agreed to open direct lines of communication to coordinate the initiatives.
• According to a statement issued by the Sri Lanka High Commission in New Delhi, the two sides discussed “four pillars” for short- and medium-term cooperation.

Indo-Sri Lanka Relations:

• The relationship between India and Sri Lanka is more than 2,500 years old. 
• Both countries have a legacy of intellectual, cultural, religious and linguistic interaction.
• In recent years, significant progress in the implementation of developmental assistance projects for Internally Displaced Persons (IDPs) and disadvantaged sections of the population in Sri Lanka has helped further cement the bonds of friendship between the two countries.

Significance of Srilanka for India:

• Economic – India has enjoyed the status of being Sri Lanka’s main economic partner for most of its independent history.
• Geo-strategic importance – Srilanka is placed at a crucial juncture of important shipping lanes. India can leverage its geostrategic significance for enhanced transhipment facilities and regional security.

• Regional Significance – Being a member of SAARC, BIMSTEC, and IORA both Sri Lanka and India can complement each other by finding greater convergence and syncing their respective foreign policies including SAGAR doctrine.

Political Relations:

• Political relations between the two countries have been marked by high-level exchanges of visits at regular intervals.

Commercial Relations:

• Sri Lanka is one of India’s largest trading partners in SAARC. India in turn is Sri Lanka’s largest trade partner globally.
• Trade between the two countries grew particularly rapidly after the entry into force of the India-Sri Lanka Free Trade Agreement in 2000.
• Exports from India to Sri Lanka in 2016 were US$ 3.83 billion, while exports from Sri Lanka to India were US$ 551 million.

Cultural Relations:

• The Cultural Cooperation Agreement, 1977 forms the basis for periodic Cultural Exchange Programmes between the two countries.
• The Indian Cultural Centre in Colombo actively promotes awareness of Indian culture by offering classes in Indian music, dance, Hindi and Yoga.
• India and Sri Lanka commemorated the 2600th year of the attainment of enlightenment by Lord Buddha (Sambuddhatva Jayanthi) through joint activities.
• The two Governments jointly celebrated the 150th Anniversary of Anagarika Dharmapala in 2014.
• The India-Sri Lanka Foundation, set up in 1998 as an intergovernmental initiative, also aims towards the enhancement of scientific, technical, educational and cultural cooperation.
• Under the Indian Technical and Economic Cooperation Scheme and the Colombo Plan, India offers 370 slots annually to Sri Lankan nationals.
• Tourism also forms an important link between India and Sri Lanka.
  • The government of India formally launched the e-Tourist Visa (eTV) scheme for Sri Lankan tourists in 2015.
  • In 2016, 14% of the total number of tourists arriving in Sri Lanka were Indians.
  • Sri Lankan tourists too are among the top ten sources for the Indian tourism market.

About the “four pillars” for short- and medium-term cooperation.

• Urgent food and health security package that would envisage an extension of a line of credit to cover the import of food, medicines and other essential items from India to Sri Lanka;
• Energy security package that would include a line of credit to cover the import of fuel from India, and early modernisation of the Trincomalee Tank Farm;
• Offer of a currency swap to help Sri Lanka address its balance of payment issues;
• Facilitation of Indian investments in different sectors that would contribute to growth and expand employment

The Indian Express link-

https://indianexpress.com/article/india/india-cooperation-plan-revive-covid-hit-sri-lanka-7654990/

Question- Economic recovery from pandemic can give India chance to help Sri Lanka and regain lost ground to China in the island nation. Comment .