While India signals readiness to deepen economic engagement with Sri Lanka, domestic indecision and political caution continue to slow Colombo’s response, raising concerns that the country may once again miss a strategic opportunity. Opposition MP Dr. Harsha de Silva has called for a more candid national conversation on economic integration with India, warning that prolonged hesitation carries tangible costs.
Reacting to recent political engagements in New Delhi, Dr. de Silva questioned the lack of progress on expanding the bilateral trade framework. “Nothing happened for the last 1.5 years. In fact, ‘ECTA’ does not even appear in any of the official statements during the visits of the President or Prime Minister,” he wrote on social media.
India, now the world’s fastest-growing major economy, already plays an outsized role in Sri Lanka’s investment landscape. According to High Commissioner Santosh Jha, approximately 25% of Sri Lanka’s foreign direct investment in 2025 originated directly from India. When investments routed through global subsidiaries are included, the figure rises to “approximately 40–50% of FDI inflows.”
Projects such as the West Container Terminal at the Port of Colombo, CEAT’s $171 million manufacturing investment, and the revival of Colombo Dockyard with support from Mazagon Dock Shipbuilders demonstrate long-term commercial commitment. Yet critics argue that Sri Lanka has failed to build a coherent policy framework to maximise these linkages.
Dr. de Silva frames the issue not as ideological alignment but economic pragmatism. He warned that delays in trade liberalisation and technology cooperation have translated into lost employment opportunities and slower growth. “This has been a colossal waste of so many thousand young lives and decades of lost time,” he said.
At the same time, he acknowledged the political risks involved. “I am aware that opportunistic nationalists will attack me saying this line of thinking will cost the opposition the next election,” he noted, recalling similar resistance during earlier reforms such as the establishment of the Suwa Seriya ambulance service.
However, Indian officials maintain that engagement remains demand-driven. On proposals ranging from land connectivity to trade upgrades, Jha clarified that progress depends on Sri Lanka’s readiness. “Our proposal to the Government of Sri Lanka still is there to conduct a detailed project report process,” he said.
Constructive critics argue that Sri Lanka must now move beyond fear-driven policy paralysis. With India advancing rapidly on digital public infrastructure, artificial intelligence collaboration, renewable energy, and regional logistics, the window for alignment is narrowing. Strategic engagement, they contend, requires not blind acceptance but timely decisions, institutional preparedness, and transparent public debate before opportunity costs deepen further.
