By: Staff Writer
April 06, Colombo (LNW): Indian Prime Minister Narendra Modi’s recent visit to Colombo marked a significant step in strengthening India–Sri Lanka relations through energy cooperation, economic support, and regional security collaboration.
During his bilateral meeting with Sri Lankan President Anura Kumara Dissanayake, PM Modi announced key developments aimed at benefiting the Sri Lankan people and deepening bilateral ties under India’s ‘Neighbourhood First’ and SAGAR (Security and Growth for All in the Region) initiatives.
Modi emphasized the importance of three major energy initiatives—the Sampur Solar Power Plant, a Multi-product Pipeline, and the development of the Trincomalee Energy Hub—which are expected to enhance energy access and economic opportunities for all Sri Lankans. Additionally, he highlighted a significant interconnectivity agreement that would enable Sri Lanka to export surplus electricity, potentially transforming the country’s energy landscape.
A major announcement during the visit was India’s decision to convert over USD 100 million of Sri Lanka’s debt into grants, effectively writing off the loans. “In just the last six months, we have converted more than USD 100 million worth of loans into grants,” Modi stated at a press briefing held at the Presidential Secretariat.
This gesture comes in the wake of Sri Lanka’s economic crisis and foreign debt default in 2022, which was triggered by years of poor fiscal management and macroeconomic instability. Of the approximately USD 1.366 billion of Indian loans eligible for restructuring, this conversion underscores India’s goodwill and support.
India and Sri Lanka also finalized a debt restructuring deal through bilateral amendatory agreements, easing Sri Lanka’s financial burdens. Typically, debt restructuring for middle-income nations involves extending repayment periods and lowering interest rates. However, India’s move to write off a portion entirely is an exceptional gesture of support.
The two countries signed seven Memorandums of Understanding (MoUs) following the high-level talks. Among these were agreements on defence cooperation, the development of Trincomalee as a strategic energy hub, and multi-sectoral grant assistance for Sri Lanka’s eastern provinces.
Prime Minister Modi used the occasion to reiterate India’s hope that Sri Lanka would address long-standing issues concerning the Tamil community. He urged the government to fully implement its constitution, particularly the provisions on provincial council elections. “We hope the aspirations of the Tamil people will be fulfilled,” he said, emphasizing the importance of inclusive governance.
President Dissanayake expressed appreciation for India’s support and reaffirmed Sri Lanka’s commitment to ensuring its territory is not used in any way that would threaten India’s security or the region’s stability. The two leaders also addressed the contentious issue of fishermen, agreeing to adopt a more humanitarian approach.
Modi advocated for the swift release of detained fishermen and their boats, while Dissanayake requested India’s assistance in tackling illegal, unreported, and unregulated (IUU) fishing practices.
Modi’s remarks were peppered with symbolism and references to cultural bonds. Quoting Tamil saint Thiruvalluvar, he underscored the strength of true friendship, highlighting that both leaders had chosen to visit each other’s countries as their first foreign visits since assuming office.
This mutual choice reflects the depth and special nature of the relationship between the two South Asian neighbours.
In conclusion, Modi’s visit not only reinforced India’s strategic commitment to Sri Lanka but also set a positive tone for future cooperation. The agreements and initiatives announced during the visit mark a new chapter in bilateral relations, focusing on mutual development, regional security, and cultural affinity.
