The Hindu: Published on 6th April 2025:
Why in News?
During Prime Minister Narendra Modi’s visit to Sri Lanka, seven major Memoranda of Understanding (MoUs) were signed on January 2025, covering defence, energy, health, digitisation, and cultural ties.
India converted $100 million of loans into grants and reduced interest rates on other loans to support Sri Lanka’s economic recovery.
This visit reflects India’s continuing commitment to neighbourhood-first policy and deeper regional cooperation.
Key Agreements Signed (MoUs)-
Defence Cooperation MoU (Umbrella agreement for structured defence partnership).
Energy Sector Cooperation:
- Cross-border energy grid connectivity.
- Joint development of Trincomalee as an energy hub (with UAE).
- Digitisation Projects.
- Health Sector Collaboration.
- Cold Storage Facility in Dambulla (Inaugurated virtually).
- Solar Power Plant in Trincomalee (Inaugurated virtually).
- Assistance to Sri Lanka’s Eastern Province.
Significance of the Visit-
- Symbol of Strategic Partnership:
- Strengthens shared security in the Indian Ocean region.
- Reinforces economic, energy, and cultural linkages.
- Humanitarian & Financial Support:
- Interest rate reductions on Indian loans.
- Conversion of $100 million loan into non-repayable grants.
Cultural Diplomacy:
India to send Buddha relics to Sri Lanka for Vesak festival.
Renovation support for prominent temples like Thirukoneswaram, Anuradhapura, and Sita Eliya.
Defence & Security Dimension-
- The Defence MoU will enhance:
- Joint military exercises.
- Maritime security coordination.
- Counter-terrorism collaboration.
Sri Lankan President reaffirmed commitment not to allow any activity on Sri Lankan soil against Indian interests — crucial amid China’s growing presence in the region.
Energy & Infrastructure Development-
India-UAE-Sri Lanka trilateral energy partnership at Trincomalee shows India’s intent to build regional energy resilience.
Renewable projects like solar plants and cold storage enhance sustainable development and food security.
Economic Impact-
- Interest rate concessions and grants will ease Sri Lanka’s external debt burden.
- Boosts economic recovery after Sri Lanka’s financial crisis of 2022–23.
- Facilitates long-term regional economic integration with India at the centre.
Cultural & Religious Ties-
- Exposition of Buddha relics boosts religious diplomacy.
- Restoration of temples enhances Buddhist and Hindu heritage ties.
- Strengthens people-to-people contact and cultural affinity.
Geopolitical Implications-
- Counters China’s influence in the Indian Ocean region through development-centric diplomacy.
- Positions India as a reliable regional partner and security guarantor in South Asia.
- Aligns with India's Act East and Neighbourhood First policies.
Conclusion-
India’s multidimensional engagement with Sri Lanka — from defence to culture — not only helps in stabilising Sri Lanka’s economy but also strengthens India’s position as a regional leader. These MoUs mark a strategic shift towards deeper cooperation, rooted in mutual respect, shared history, and common regional interests.
