INDO-SRI LANKA - RELATIONSHIP WITH AREA OF CONFLICTS

INTRODUCTION

India-Sri Lanka relations are shaped by geographical proximity, shared cultural heritage, and mutual strategic interests. Located in the Indian Ocean, Sri Lanka is India’s immediate maritime neighbor. Over the years, the bilateral relationship has evolved through political, economic, and strategic dimensions. Today, the India-Sri Lanka relationship is strong and poised for a quantum jump by building on the rich legacy of historical linkages and strong economic and development partnerships that have been forged.                       

BACKGROUND

The two nations’ relationship dates back more than 2,500 years, and both sides have built on a tradition of intellectual, cultural, religious, and linguistic exchange. Both nations were under British colonial rule. Many Indian Tamils migrated to Sri Lanka during this period to work on tea plantations. Shared experiences of colonialism laid the foundation for cooperation in the post-independence era. Buddhism was introduced to Sri Lanka by Emperor Ashoka’s son Mahinda in the 3rd century BCE. This led to the establishment of a strong cultural and religious connection between the two countries. This cultural bridge continues to strengthen ties. Tamil influence in Sri Lanka, particularly in the north and east, has historical roots dating back to the Chola dynasty.

BILATERAL RELATIONS

Bilateral relations between Sri Lanka and India have frequently fluctuated in response to domestic dynamics and foreign/external considerations, including global trends, political leadership, and ideological values. The foreign policy orientation under the Anura Kumara Dissanayake-led National People’s Power (NPP) has been marked by unexpected developments. While there were speculations that the NPP government would forge closer ties with China due to the Janatha Vimukthi Peramuna (JVP)’s historical ideological leanings with Beijing, it has undertaken concerted efforts to cultivate a mature and constructive relationship with India. This reorientation indicates how the party has relinquished its previous normative stance on India and adopted a more strategic and pragmatic foreign policy posturing.

The NPP was cognisant of India’s goodwill during the 2022 crisis by providing currency swaps, essential goods, grand assistance, deferred payments or lines of credit, and a prospective economic investment source and support. The crisis offered India a strategic opportunity to revive its historical influence and push back against the Chinese heft.

In 2022, Sri Lanka granted provisional approval to Adani Green Energy for the development of two wind projects in Northwest Mannar and Pooneryn. In October 2023, Sri Lanka’s state-run dairy companies, managed by the National Livestock Development Board, formed a joint venture with India’s Amul Dairy. Moreover, discussions have been underway about involving India’s Adani Group in the management of Sri Lanka’s key international airports. In February 2024, Sri Lanka’s President Ranil Wickremesinghe virtually launched Phase-IV of the Indian Housing Project, ‘Bharat-Lanka’, aimed at building 10,000 homes for plantation sector workers in Sri Lanka with Indian grant assistance. The same month, India introduced its Unified Payment Interface in Sri Lanka, further enhancing financial connectivity between the two nations, alongside the approval of the Indian Rupee as a designated currency in 2023.

During a recent visit to New Delhi in 2024, Sri Lankan Foreign Minister Tharaka Balasuriya emphasized the deep civilizational and historical ties between India and Sri Lanka, while acknowledging China as a significant trading partner, like many of Sri Lanka’s other key trade relationships. In the same year, President Dissanayake’s visits to India highlighted the JVP’s new pragmatic stance, emphasizing trade, infrastructure development, and maritime security as areas of collaboration. Sri Lanka’s economic crisis further propelled this shift, as India extended significant financial support to stabilize the island nation.

ECONOMIC  RELATIONS

Sri Lanka’s economic crisis, which began in 2019, marked one of the most challenging periods in the island nation’s history. As it struggled with a combination of economic mismanagement, external shocks, and fiscal shortfalls, Sri Lanka faced an unprecedented economic meltdown. In the middle of the crisis, the controversy began when Sri Lanka procured pesticides from China in a bid to support its farming sector. However, these pesticides carried an unintended consequence, a pest that proved incompatible with Sri Lankan soil. Rather than enhancing crop yields, the pesticides contributed to soil degradation and crop failure, leaving farmers grappling with reduced productivity and increased costs. 

Despite being aware of the detrimental effects of the product, the Chinese supplier refused to accept returns or provide compensation. Instead, China insisted on full payment for the faulty pesticides, placing Sri Lanka in a difficult position. For a country already navigating an economic crisis, this demand added to its fiscal burdens, further straining its limited resources. During this tumultuous time, India emerged as a steadfast partner, extending critical support to its neighbour, and helping it navigate the worst of its financial woes. One of the most significant ways India supported Sri Lanka was through a $4 billion line of credit extended in 2022. This credit facility enabled Sri Lanka to import essential goods, including food, medicines, and fuel, at a time when its foreign exchange reserves were nearly depleted. This timely intervention not only alleviated immediate shortages but also helped stabilise public sentiment during widespread protests and social unrest.

EDUCATIONAL TIES

Educational relations between India and Sri Lanka are robust and encompass various forms of cooperation, including scholarships, training programs, and academic exchanges. India offers numerous scholarships to Sri Lankan students for undergraduate, postgraduate, and research studies, as well as non-formal courses like music and dance. Both nations also collaborate on initiatives like the "Study in India" program and training for teachers in STEM subjects.

The Government of India offers a number of scholarships every year to Sri Lankan students who wish to pursue their studies in India. Offer of scholarships are sent to the Ministry of Higher Education through High Commission of India (HCI), Colombo. Nominations are received from the Ministry in the HCI. The information on such scholarships and schemes is widely publicized as and when they are available.

Scholarship and fellowship are offered to Sri Lankan students to pursue under-graduate and post-graduate courses in various disciplines in Indian institutions. Scholarships are also available for research work and non-formal courses (e.g. training courses in classical music and dance).

Some of the Scholarships are:

• ·       Scholarships under the Cultural Exchange Programme: Sri Lankan students are also offered some scholarship under the India Sri Lanka cultural Exchange Programme.
• ·       Scheme of Scholarships for Sri Lankan Nationals: Nearly 60 scholarships awarded annually under this scheme cover courses leading to under-graduate and post-graduate degrees in all subjects, excluding Medicine. The scholarships also cover research work.
•  ·       SAARC Scholarship Scheme of the ICCR: Under the ICCR's SAARC scholarship scheme, one fellowship two scholarships are offered at the post-graduate level each year to Sri Lankan nationals. Areas in which these fellowships and scholarships are tenable include economics, education, environment, agriculture, mass communication, language, literature, sociology, transport engineering, applied economics, business administration, bio-chemistry, social work, food technology and home science. No scholarships are offered under this scheme for medicine.
• ·       ICCR Commonwealth Scholarship/Fellowship Plan: A limited number of awards are made each year. The study or research areas eligible are as for the ICCR's SAARC Scholarship Scheme.

 

·       Technical Cooperation Scheme (TCS) of the Colombo Plan: Upto 50 training opportunities are available from the Government of India's Colombo Plan Technical cooperation Scheme for Sri Lankan nationals in diverse fields. This programme is administered by the High Commission through the Department of External Resources, Ministry of Finance, Government of Sri Lanka. According to the scheme, scholarships are offered for under-graduate, post-graduate and research towards a Ph.D. degree. At the under-graduate level a few scholarships are also available for engineering degrees or diploma courses.

PEOPLE-TO-PEOPLE TIES

The People of Indian Origin (PIOs) comprise Sindhis, Gujaratis, Memons, Parsis, Malayalis and Telugu-speaking persons who have settled down in Sri Lanka and are engaged in various business ventures. Though their numbers (10,000 approx.) are much lesser as compared to Indian Origin Tamils (IOTs), they are economically prosperous and are well settled. Each of these communities has its groups that organize festivals and cultural events. The Cultural Cooperation Agreement has been signed between both countries. The Indian Cultural Centre in Colombo actively promotes awareness of Indian culture by offering classes in Indian music, dance, Hindi, and Yoga. Every year, cultural troops from both countries exchange visits. Buddhism is a connecting link between India and Sri Lanka on religious lines.

India also offers training opportunities under the Indian Technical and Economic Cooperation (ITEC) scheme to government officials and executives working in the private sector. Over 100 training slots are reserved per year for Sri Lanka. To highlight and promote the education opportunities available in India, Education Fair are planned to be held annually in Sri Lanka. The fair would provide the Sri Lankan students the scope of opportunities available in India while also getting a chance to interact with the representatives of Universities and colleges from India. 

AREA OF CONFLICTS

1. Katchatheevu Island Issue

Katchatheevu is a small, uninhabited island in the Palk Strait that separates India from Sri Lanka. This small, politically very strategic island has been a bone of contention between the two nations since almost the middle of the 20th century. The island possesses a richly historical and cultural bearing, being a prime factor in the geostrategic and diplomatic negotiations over maritime demarcation and rights of fishing. For its governance and the impact on local fishing communities, the island has made rounds in discourses on Indo-Sri Lankan relations.

 

India ceded the island to Sri Lanka under the Indo-Sri Lankan Agreements, in 1974 and 1976. These agreements clearly provided for the transfer of the sovereignty of this island to Sri Lanka but permitted visits by Indian fishermen there for drying their nets and for pilgrimage purposes without a visa. Over the years, however, there have been many cases of arrests and confrontations, with Indian fishermen allegedly making a hue and cry that strict vigilance by the Sri Lankan Navy leads to the violation of their traditional fishing rights. The issue has, therefore, taken a humanitarian angle, affecting the livelihoods of the fishermen in Tamil Nadu.

2. Maritime Disputes

The maritime boundary between India and Sri Lanka, particularly in the Palk Strait, has been a long-standing contentious issue. Allegations of illegal fishing, destructive fishing practices, and frequent arrests of Indian fishermen by the Sri Lankan Navy have fueled diplomatic tensions between the two nations. Indian fishermen with their trawlers often in search of fishes stray into Sri Lankan waters due to engine failures or sudden weather changes.

 

The destruction of fishing vessels, continued boat confiscation after fishermen's release, and heavy fines by Sri Lankan authorities remain recurring issues between both nations.  The Palk bay is equally divided between India and Sri Lanka by the IMBL (the International Maritime Boundary Line (IMBL), but fishing rights remain contested.  Overfishing on the Indian side of the IMBL forces Indian fishermen into Sri Lankan waters, which Sri Lanka views as “poaching,” posing security risks and threatening local livelihoods.  Sri Lanka alleges that Indian trawlers intrude regularly in a coordinated manner and fears Tamil militant groups may re-emerge using fishing vessels.

 

Another maritime issue exists in the form of Sethusamudram Shipping Canal Project undertaken by India to link Palk Bay with the Gulf of Mannar through a shipping canal. Apart from cutting short distances for Indian ships navigating between eastern and western coasts of India, the Canal is expected to further the underdeveloped coastal regions of Tamil Nadu. Environmentalists, however, feel all these come with a huge cost to the rich marine resources in the area. Sri Lanka has reservations on this venture as well, but chose to remain silent fearing strains in bilateral relations. Aside from environmental and livelihood concerns of its fishermen, Sri Lanka is more concerned about the loss of container traffic at its Colombo and Galle ports. Interestingly, the LTTE is also opposed to the project. Its naval activities might be hindered as and when the Canal becomes operational. It is also for this reason (vis-à-vis to counter the LTTE) that the government of Sri Lanka did not vehemently oppose the Canal project.

 3. Tamil Ethnic Issues

The native people of Sri Lanka (then Ceylon) were colonially under the British. In 1815, the population composition of Sri Lanka was 3 million Sinhalese Buddhists and 300,000 Tamil Hindus. From the 1830s onwards, the British started transporting indentured labour from India, especially from Tamil Nadu, to Ceylon to work on tea plantations. The Tamils who the British transported settled in the northern part of Ceylon. 

 

Sinhalese is the predominant community. They consist of 3/4th of the Sri Lankan population. They speak Sinhalese and follow Buddhism. Tamils in Sri Lanka are predominantly Hindus. The Muslims, mainly of Tamil origin, speak both Tamil and Sinhala. Tamils were in the minority, but Britishers favoured Tamils over Sinhalese in all opportunities. Tamils were preferentially appointed to bureaucratic positions, which angered the Sinhalese majority.

 

When Britishers went back Sinhalese majority started to capture all property and posts from Tamils. The Tamil language lost the status of official language under the provisions of the Sinhalese Only Act. Ceylon Citizenship Act was passed, making it virtually impossible for Indian Tamils to obtain citizenship. Over 700,000 Tamils (consisting of up to 11% of the country’s total population) were made stateless overnight. After that, the state back pogrom of Tamils started in which Tamils were massacred & their property was looted. In retaliation, Tamils started a civil war under the leadership of LTTE headed by Prabhakaran.

 

The majority population, Sinhalese, supresses the ethnic Tamils after the defeat of the LTTE in 2009. Riots against minority Muslim groups rose due to increasing Islamophobia in Sri-Lankan society. Such riots are led by Sinhala majoritarian groups such as the Bodu Bala Sena. To deal with the situation, various agreements were signed like Nehru – Kotelawala Agreement, 1953, Shastri – Sirimavo Agreement, 1964 and Rajiv – Jayewardene Agreement (Indo-Sri Lanka Accord), 1987 But the agreement was vehemently opposed by both Tamil & Sinhalese extremists.

 

Hundreds of troops were killed in clashes with Tamils. Operations of Indian Peace Keeping Forces changed ethnic violence into civil war, which Sri Lanka was forced to continue even when Indian forces left in 1990. It led to many political killings of both Indian and Sri Lankan leaders like Rajiv Gandhi (in 1991) and Premadasa (in 1993). The year 2009 was important for Sri Lanka. The thirty-year[1]old ethnic armed conflict between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam (LTTE) came to an end.

 

While the conflict is over, many Tamils remain displaced, and issues surrounding their rehabilitation and reintegration continue to be addressed. India continues to play a role in the region, offering humanitarian assistance and supporting negotiations between the Sri Lankan government and the Tamil National Alliance.

5. Chinese Influence

The activities of the Chinese in the neighbouring country are a concern to national security and called for intensified vigil along the coastline. The movement of PLA (People's Liberation Army) cadres and deployment of hi-tech gadgets such as satellites, drones, and other communication equipment in northern Sri Lanka required constant surveillance in coastal districts, the advisory sent to all cities/districts in the State said. Citing sources, the alert claimed that the PLA deployed sophisticated gadgets in the garb of launching sea cucumber farming. The free movement of Chinese nationals in many parts of northern Sri Lanka, including Mullaitheevu, Paruthitheevu, Analaitheevu, Meesalai and Chavakkacheri, had triggered discontentment among Tamil fishermen.

 

The Yuan Wang 5 of China is designed to track satellites, rocket launches, and other space activities. It also has the ability to gather data on intercontinental missiles. The ship's visits to Hambantota Port in Sri Lanka have raised concerns from India and the United States, who have suggested it might be used to gather intelligence on Indian military assets. Sri Lanka has stated that the ship's visit is for replenishment purposes. The Yuan Wang 5 has docked at Hambantota Port in Sri Lanka, sparking diplomatic concerns from India and the US. This port was given to China by Sri Lanka on a 99-year lease after Sri Lanka failed to repay Chinese loans. It is seen as a case of Chinese "debt trap" Diplomacy.

 

Recently, China's presence in Sri Lanka has increased on a large scale. Sri Lanka has decided to establish a Special Economic Zone around the Colombo port city and a new economic commission, to be funded by China. The Colombo port handles 60% of India’s trans-shipment cargo. Leasing of Hambantota and the Colombo Port City project makes it almost certain for the Chinese navy to have a permanent presence in the Indian Ocean which will be worrisome for India’s national security. This Chinese strategy to encircle India is referred to as the Strings of Pearls Strategy.

6. Cross Border Smuggling Concerns

The Indian Coast Guard and Sri Lanka Navy struggle to differentiate between genuine fishers and smugglers making IMBL vulnerable to smuggling.  In 2016-17, the DRI Directorate of Revenue Intelligence (DRI) India had effected seizures of gold in seven cases, weighing a total of 54 kilograms and valued at about Rs 16 crore, smuggled from Sri Lanka into India through the sea route using country boats and cleared after landing on the coastal areas of Tamil Nadu. In 2017-18, 80 kilograms of gold smuggled in a similar manner and valued at about Rs 24 crore, have been seized by the DRI in eight cases. The coastal route is also used by drug traffickers. In January 2017, after extensive surveillance, Indian Customs officers seized six kilograms of heroin from a boat near Tuticorin. Apart from gold and narcotics, wildlife such as exotic turtles of central and north-east Indian origin and various marine species, are also being smuggled between the two countries by sea.

 

In 2025, India and Sri Lanka have decided to regularly exchange information to check smuggling between the two countries. They have resolved to strengthen cooperation in preventing the smuggling of gold, drugs, fake Indian currency notes (FICN), wildlife, and other contraband across the India-Sri Lanka route, and to address trade-related issues such as country of origin frauds that impact the revenue of both the countries.

CONCLUSION

The evolving relationship between India and Sri Lanka under President Anura Kumara Dissanayake’s leadership marks a significant shift in South Asian diplomacy. The JVP’s newfound engagement with India, moving away from its historical opposition, highlights the potential for pragmatic diplomacy to overcome long-standing political differences. Despite challenges such as the end of the Chinese research vessel moratorium, fishing disputes, and scrutiny over Indian investments, the India-Sri Lanka partnership remains more resilient than India’s relationships with many of its other South Asian neighbours. This shift reinforces the importance of cooperation and mutual understanding in navigating regional dynamics, offering hope for a more stable and constructive future for both nations in an increasingly complex geopolitical landscape.

 

References

• ·       Neighbourhood First: Redefining India-Sri Lanka Relations by Dikumoni Hazarika Rohil Oberoi - 15 January, 2025
• ·       India-Sri Lanka Educational Relations, Consulate General of India, Hambantota, Sri Lanka
• ·       Problem of Fishermen in India-Sri Lanka Relations | Institute for Defence Studies and Analyses
• ·       India to support Sri Lanka in UN – The Economic Times
• ·       Indian Intervention in the Sri Lankan Civil War – Wikipedia
• ·       Indo-Sri Lanka Bilateral Ties under the NPP: Pragmatism over Ideology / Author : Roshni Kapur, Jun 16, 2025
• ·       India-Sri Lanka Bilateral Relations, Consulate General of India, Jaffna, Sri Lanka
• ·       India-Sri Lanka Relations / Amoghavarsha IAS Academy