FINANCIAL CHRONICLE – The bilateral relationship between India and Sri Lanka is described as an “unbreakable bond,” deeply rooted in civilizational ties and geographical proximity. This connection is considered a “global model for cooperative partnership between neighbours,” according to Indian High Commissioner Santosh Jha.
During a reception marking the 77th Republic Day of India on Monday, Jha highlighted recent high-level engagements, including Indian Prime Minister Narendra Modi’s visit to Sri Lanka in April 2025 and Sri Lankan President Anura Kumara Dissanayake’s trip to India in December 2024. These visits outlined a roadmap emphasizing physical, digital, and energy connectivity between the two nations.
“Shared aspirations for development and shared commitment to security have emerged as key goals,” Jha stated. He also discussed progress on initiatives such as the Sampur solar power project, grid interconnections, and the development of Trincomalee in Eastern Sri Lanka as an energy hub, with involvement from the UAE.
Infrastructure improvements were noted, including the rebuilding of 500 km of railway lines and 400 km of signaling systems over the past decade. The resumption of ferry services between the two countries further illustrates enhanced connectivity. Additionally, aviation connectivity has flourished, with 180 weekly flights between India and Sri Lanka.
On the digital front, efforts include the Sri Lanka Unique Digital Identity (SLUDI) project and the implementation of UPI payments to promote a cashless economy. India has also extended its support to Sri Lanka through development aid and post-Cyclone Ditwah assistance.
India has offered career development training for hundreds of Sri Lankan civil servants, judges, journalists, and political leaders, aiming to foster goodwill among Sri Lankans. However, some Sri Lankans remain skeptical about India’s intentions, recalling Delhi’s past involvement in arming Tamil militants and intervening in domestic politics, which critics argue sowed division rather than unity in the island nation.
The High Commissioner also emphasized emerging collaborations in artificial intelligence, startups, and venture capital to build a “modern innovation ecosystem.” Economically, India remains Sri Lanka’s top tourist source, second-largest export destination, and largest trading partner, with Indian firms contributing 50 percent of 2025 investments.
Development assistance from India exceeds US$7.5 billion, including US$850 million in grants, covering all 25 districts of Sri Lanka. “India is Sri Lanka’s most reliable and dependable partner,” Jha affirmed, highlighting the swift response to Cyclone Ditwah under Operation Sagar Bandhu, which provided 1,100 tons of relief, medicines, equipment, and Bailey bridges.
During External Affairs Minister S. Jaishankar’s visit, a US$450 million package was announced, including a US$100 million grant for connectivity, housing, health, education, agriculture, and disaster preparedness, with implementation already underway.
Despite the narrative of goodwill, historical grievances have complicated trust-building efforts. During the 1980s, India trained and armed Tamil youth groups, including the Liberation Tigers of Tamil Eelam (LTTE), to pressure Colombo over ethnic Tamil rights, which fueled a brutal civil war claiming over 100,000 lives.
The 1987 Indo-Sri Lanka Accord led to the deployment of the Indian Peace Keeping Force (IPKF), which became embroiled in conflict with the LTTE and faced accusations of atrocities, culminating in their 1990 withdrawal amid local resentment. India’s interventions extended to influencing policies, from the 1974 Katchatheevu islet handover to perceived meddling in elections and economic agreements. The 1991 assassination of Indian Prime Minister Rajiv Gandhi by the LTTE further strained relations, although India’s strategic interests in the Indian Ocean, particularly in countering China, often take precedence over past apologies.
(Colombo/January 27/2026)
