India Sri Lanka Relations

India is Sri Lanka’s closest neighbour that has ethnic links to its most significant minority. India has a huge influence in the island nation’s political, economic, social and cultural consciousness, and its world view.

Major Irritants

Fishermen Issue – Both countries are separated by the International Maritime Boundary Line. Often, fishermen from both sides cross over to other side for fishing expeditions – results in arrests & sometimes, shootings.
Sri Lanka accuses Indian fishermen of straying into its territorial waters, while the latter maintain they are only fishing in their traditional areas, especially around Katchatheevu, an islet ceded to Colombo in 1974.

Katchatheevu Island – One of the major reasons complicating the issue is of Katchatheevu Island which India ceded to Sri Lanka in 1974 under a conditional accord. In 2009, the Sri Lankan government declared Katchatheevu Island as sacred land owing to a Catholic shrine’s presence on the piece of land.
India stands for a “united Sri Lanka”, but wants an “early and full implementation of the 13th Amendment” that provides for devolution in the Tamil majority Northern and Eastern provinces.
Sri Lanka is part of China’s Maritime Silk Road. China is also modernizing Hambantota port in Sri Lanka
Sri Lanka has decided to clear the stalled $1.4 billion Colombo Port City, which had China as a partner

For Fisherman issue Indian Navy or Coast Guard should join the Sri Lankan Navy in jointly patrolling the international boundary to prevent trespassing.

Cooperation Fields

India is Sri Lanka’s largest trading partner globally
India-Sri Lanka Free Trade Agreement of 1998 was followed by efforts towards a Comprehensive Economic Partnership Agreement (CEPA) to liberalise trade in services and investment starting in the mid-2000s
India to assist Sri Lanka in the enhanced usage of Natural Gas
joint investments in the development of Port, Petroleum Refinery and other industries in Trincomalee.
India and Sri Lanka signed a civil nuclear cooperation agreement, the first such deal signed by Sri Lanka with any foreign country, reflecting the new Lankan government’s pro-India approach.
To encourage Indian companies to invest in a Container Terminal in Colombo Port, considering that majority of transhipment in Colombo Port is related to India
Sampoor project: 500-MW Sampoor thermal power project, a joint venture involving Sri Lanka and India, was granted environmental clearance.

While New Delhi’s anxiety over Chinese presence might be justified, it should avoid using China lens to view Sri Lanka, respecting the country’s autonomy to engage with any willing partner. The more India treats Sri Lanka as an equal partner, the stronger the relationship is likely to grow.

Also read: India Russia Relations

✅ India Sri Lanka Relations: 10 Key Points

Civilizational and Cultural Bonds: India and Sri Lanka share ancient Buddhist and cultural ties, with strong influence from Indian traditions, language, and religion.
Strategic Location: Sri Lanka’s location in the Indian Ocean gives it immense strategic importance for India’s maritime security and regional influence.
Economic Ties: India is among Sri Lanka’s top trading partners, with bilateral trade exceeding $5 billion, driven by the Indo-Sri Lanka Free Trade Agreement (ISFTA).
Development Assistance: India has invested over $3.5 billion in development projects in Sri Lanka, including housing, health care, education, and transport infrastructure, especially in the Northern and Eastern provinces.
Fishermen Dispute: Ongoing tensions exist due to Indian fishermen entering Sri Lankan waters, often resulting in arrests or confrontations, prompting diplomatic negotiations.
Defense and Security Cooperation: India and Sri Lanka conduct joint military exercises like Mitra Shakti and cooperate on anti-terrorism, naval security, and coastal surveillance.
Ethnic Tamil Issue: India has consistently advocated for the rights of Sri Lankan Tamils, urging political devolution and full implementation of the 13th Amendment to promote reconciliation.
China Factor: India is cautious of China’s growing presence in Sri Lanka, especially Chinese investments in strategic assets like the Hambantota Port under long-term lease.
Post-War Engagement: After Sri Lanka’s civil war ended in 2009, India provided humanitarian aid, supported rehabilitation, and encouraged inclusive governance.
People-to-People Links: Cultural exchange, religious tourism (especially Buddhist pilgrimage), and strong diaspora links continue to strengthen bilateral understanding.

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