MoUs between India and Sri Lanka 

Why in News? 

MoUs between India and Sri Lanka: Recently, during Prime Minister Narendra Modi’s visit to Sri Lanka, seven major Memorandums of Understanding (MoUs) were signed between the two countries. These MoUs aim to strengthen cooperation in defence, energy, and digital sectors. 

MoUs between India and Sri Lanka

• Defence Cooperation Agreement: For the first time, India and Sri Lanka have established an institutional framework for military cooperation. A comprehensive MoU was signed for five years. It includes military training, joint exercises, and collaboration in defence technologies.
• Trilateral Energy Cooperation: India, Sri Lanka, and the United Arab Emirates signed a trilateral MoU to develop the Trincomalee region as a major energy hub. This includes both conventional and green energy, and it aims to strengthen regional energy security.
• HVDC Interconnection Project: India and Sri Lanka signed an MoU to set up an HVDC (High Voltage Direct Current) electricity transmission system. This will allow power exchange between the two countries, helping in managing energy crises.
• Digital Transformation Cooperation: India’s Ministry of Electronics and IT and Sri Lanka’s Ministry of Digital Economy signed an MoU for digital transformation. It will explore implementing Indian digital solutions like Aadhaar, UPI, and DigiLocker in Sri Lanka.
• Healthcare and Medical Partnership: An MoU was signed between the health ministries of both countries. It covers pandemic management, pharmaceutical research, and training of healthcare workers.
• Pharmaceutical Standards Cooperation: An MoU was signed between the Indian Pharmacopoeia Commission and Sri Lanka’s National Medicines Regulatory Authority. It aims to harmonize drug standards and ensure quality, safety, and effectiveness of medicines.
• Multisectoral Aid for Eastern Province: India promised multisectoral grant aid for Sri Lanka’s Eastern Province. It will support development in infrastructure, education, health, and livelihood, especially in Tamil-majority areas.
• Infrastructure Development: Prime Minister Modi inaugurated the upgradation of the Maho-Omanthai rail section and launched the construction of a new signalling system for the Maho-Anuradhapura railway line.
  • Foundation stones were laid for a temperature-controlled agri-storage facility in Dambulla and the Sampur solar power project.
• Religious and Cultural Cooperation: India announced grant assistance for the development of the Thirukoneswaram temple in Trincomalee, the Seeta Eliya temple, and the Sacred City project in Anuradhapura. A plan was also announced to display Lord Buddha’s relics in Sri Lanka during the 2025 International Vesak Day.
• Annual Training Programme: PM Modi announced an annual training programme in India for 700 Sri Lankan citizens. It will cover education, technology, administration, and professional skills.

India-Sri Lanka Relations – In Detail

• Historical Ties: India and Sri Lanka share thousands of years of historical ties through maritime trade, religion, and migration. Aryan settlers from North India formed the basis of Sinhalese civilization. Buddhist texts like Mahavamsa and Dipavamsa describe these relations. Emperor Ashoka’s era saw Buddhism spread from India to Sri Lanka, a religious bond that remains strong.
  • From 1987 to 1990, India deployed the Indian Peace Keeping Force (IPKF) in Sri Lanka to restore peace. Though the mission faced challenges, it reflected India’s regional responsibility and crisis management role.
• Political Relations: Both are democratic republics and members of the Commonwealth. India demonstrated its “Neighbourhood First” policy by extending $3.8 billion to help Sri Lanka during its recent economic crisis. Regular high-level meetings have enhanced cooperation in defence, energy, tourism, and education. India has also supported Sri Lanka’s debt restructuring plan.
• Cultural Links: Cultural ties are deep and vibrant. Buddhism is a major link. In 2020, India gave $15 million for the restoration of Buddhist sites, training of young monks, and heritage preservation. Tamil communities in Tamil Nadu and Northern Sri Lanka share linguistic and cultural connections that shape bilateral dialogue.
• Tourism: India became Sri Lanka’s largest source of tourists in 2022, with over 100,000 Indian visitors. This helped Sri Lanka’s economy and strengthened cultural bonds. Both countries are working on the ‘Ramayana Circuit’ project.
• Trade Relations: India is Sri Lanka’s largest trading partner. A Free Trade Agreement (FTA) signed in 2000 led to a fourfold increase in trade. India exports petroleum, medicines, vehicles, and construction materials to Sri Lanka, while Sri Lanka exports tea, garments, and rubber products to India. Trade in Indian Rupees and new energy investments are aiding Sri Lanka’s economic recovery.
  • In 2023–24, bilateral trade reached $5.54 billion. Over 60% of Sri Lanka’s exports benefit from the FTA, and India is its third-largest export destination.
• Strategic Cooperation: India and Sri Lanka signed a defence MoU to formalize cooperation in maritime and security areas. Plans for grid interconnection, a petroleum pipeline, and a possible land bridge have been jointly announced to improve stability and energy security in the Indian Ocean region.
  • Both nations are active members of BIMSTEC and SAARC, regional groups promoting cooperation in trade, development, and technology.
• Humanitarian Assistance: In 2022, when Sri Lanka was facing a severe foreign exchange crisis, India extended nearly $4 billion in aid, including fuel, food, medicines, and credit support. This helped the common people and strengthened mutual trust.
  • Since 2014, India has built over 60,000 houses in Northern and Eastern Sri Lanka, providing permanent homes to thousands of war-affected families.

Major Challenges in India-Sri Lanka Relations

• Geopolitical Balance: China’s growing economic and strategic presence in Sri Lanka has become a concern for India. In 2017, Sri Lanka gave the Hambantota Port to China on a 99-year lease. In 2022, a Chinese spy ship, Yuan Wang-5, entered Sri Lankan waters. These events have increased Sri Lanka’s dependence on China and may reduce India’s influence in the Indian Ocean region.
• Katchatheevu Dispute: Katchatheevu is an island that was once part of India but is now under Sri Lankan control. In 1974, India gave this uninhabited island to Sri Lanka through an agreement. However, fishermen from Tamil Nadu still fish in the area due to traditional rights. This causes regular tensions between the two countries.
• Tamil Minority Community: Even after the end of the civil war in Sri Lanka, the core demands of the Tamil community have not been fully addressed. India supports the 13th Amendment, which promises autonomy to Tamil areas, but there has been little real progress. This causes dissatisfaction among Sri Lankan Tamils and affects mutual trust.
• Unclear Maritime Boundaries: The maritime boundary between India and Sri Lanka, especially in the Palk Strait and Gulf of Mannar, is not clearly defined in practice. Confusion and overlapping claims have made these waters disputed, particularly for fishermen from both sides.
• Strategic Autonomy: Sri Lanka’s economy is under heavy pressure from foreign debt and investment, especially from China. Even though India provides financial help, Sri Lanka’s policies often appear unbalanced. This affects India’s “Neighbourhood First” policy.

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