Visit of Sri Lankan President to India: Issues at Stake

Abstract

The first country that the newly elected President of Sri Lanka Anura Kumara Dissanayake chose to visit was India like many of his predecessors, emphasising the special relationship the island nation has with India. However, in his case it was important because the party he hailed from had a historical ruse with India and was regarded as pro-China. However, the way the visit went signalled that the relationship between the two countries has acquired a gravitas of its own and both countries have done their bits to keep it on the right track. There are inevitable pressures on the Sri Lankan leadership to respect Indian sensitivities about the perceived or real threats it faces from China’s strategic ingress into the region. This issue brief isolates the India and China factors in Lankan politics and diplomacy and suggests ways in which the two countries can carry their engagement forward.

Sri Lankan President Anura Kumara Dissanayake (popularly known as— AKD) visited India during 15-17 2024. It was his first international trip since assuming office signalling the importance Sri Lanka and his government attaches to relationship with India. During his visit he held ‘fruitful and comprehensive discussions’ with the prime minister of India.

On 16 December 2024, a joint statement was issued, which emphasised cooperation in areas ranging from training and capacity building, debt restructuring, connectivity, energy development to digitization, education, agriculture, trade and investment, tourism, fishermen and defence. The visit was welcomed both in India and Sri Lanka. In India, there was a sense of reassurance that change of guard in Colombo would not disturb bilateral equations too much, especially because there was a lingering concern about the anti-India rhetoric spewed by the ruling Lankan coalition during the election campaigns for the presidential election. In Colombo, there was a relief too that the relations would be as normal as they should be.

In this context, it would be useful to make a comprehensive review of Indo-Lanka relations analysing the context in which the visit took place and the issues that continue to affect engagement between the two countries..

The Unsurprising Visit: The Weight of Indian Generosity

That Dissanayake chose India as his first destination as President was not surprising given the continued support India has offered to Sri Lanka, more particularly since April 2022, when the island nation declared its first-ever sovereign default, triggered by a severe foreign exchange shortage, which led to an inability to service its external debt. Just prior to that by February 2022, the situation had worsened, exacerbated by a steeply falling rupee, high inflation, shortages of essential goods like fuel, power, and medicine indicating economic mismanagement and widespread corruption and nepotism within the Rajapaksa administration. The people of Sri Lanka had poured out on the streets and started the famous ‘Aragalaya’ (means ‘The Struggle’ in Sinhala) movement in March 2022, which led to significant political changes, including the resignation of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa.

While the unprecedented financial meltdown reflected badly on the Rajapaksas and their poor monetary policy, the lame-duck Sri Lankan government led by Ranil Wickremesinghe did take remedial measures assisted by India to pull the economy up from the dumps. India was the first country to respond to the crisis positively. Its help was “timely, swift and most importantly unconditional, underlining [India’s] position as a responsible and friendly neighbour of Sri Lanka. It played a pivotal role in Official Creditor Committee (OCC) that was formed in March 2023, to help Sri Lanka tide over the crisis. India is one of the three co-chairs of the OCC (with Japan and France), with 17 countries, including members of the Paris Club such as Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, and the United States of America. Interestingly, China, Sri Lanka’s largest bilateral lender, opted to stay out of the platform, but attended the discussions as an observer.

It extended nearly $4 billion in financial aid to Sri Lanka, including credit lines and grants, which were crucial in stabilizing the economy. India's remarkable financial assistance aligns with its 'Neighbourhood First' Policy. As the first creditor nation to assist Sri Lanka with debt restructuring, India provided essential financing assurances to the IMF, facilitating progress for Sri Lanka and ensuring the continuation of the IMF programme. Furthermore, India is committed to promoting increased investments in various critical sectors of the Sri Lankan economy and stands ready “to walk the extra mile” whenever Sri Lanka requires it. As a Sri Lankan observer would put it:

“Amid this chaos, a steadfast neighbour – India – stepped forward, demonstrating that partnerships can serve as a lifeline in times of dire need. What started as a lifeline has evolved into a broader collaboration across trade, energy, and infrastructure, cementing a strong bond between the two neighbours.”

Rise of AKD and the India Factor

Taking off from the crisis that turned the Lankan perspective on India positively to a large extent, it is necessary also to track the systemic changes that came about in Sri Lanka in its wake, and the rise of AKD and his party (and coalition) in Lankan politics and the India factor in the elections.

Despite Ranil Wickremesinghe performing reasonably well in the face of the crisis, the popular mandate had started shifting towards Anura Kumar Dissanayake and pushed him to the centre stage of Lankan politics in 2022-2023, as he led a centre-left 28-party coalition— formed in 2015, called National People’s Power (NPP) or Jathika Jana Balawegya in Sinhalese— and managed to secure the presidential post for himself in the September 2024 elections. AKD tailored his agenda well and presented himself as the alternative in the face of popular disillusionment with the existing crop of mainstream politicians, who appeared selfish and corrupt and responsible for the grave financial crisis. AKD with his emphasis on rooting out corruption, bringing about reforms, social justice, sustainable development and role of youth in politics changed the electoral dynamic in his favour.

In fact, in 2019 presidential election, AKD had secured just 3 per cent of the votes as the NPP presidential candidate, and his coalition had fared very badly in the parliamentary elections in 2020 as well. However, post-Aragalaya and post-default, this coalition gained traction and not only won the presidential election, but also swept the parliamentary elections in November 2024 with 159 seats out of the total seats of 225 in the house. Out of this, AKD’s parent party, Janatha Vimukthi Peramuna (JVP), which is leading the NPP coalition, secured 141 seats alone. It is a party that has had ruse with India historically, because India had helped the then Lankan government in the 1980s to decimate the JVP, in response to its violent insurrection against the government, marked by widespread violence and disruption.

Be that as it may, AKD’s growing electoral capital post-Aragalya was too conspicuous to be missed by India. In February 2024, AKD was invited to visit India. He led a NPP team comprising Vijitha Herath, Nihal Abeysinghe, and Prof. Anil Jayantha to India on a five-day, three-city tour that included stops in New Delhi, Ahmedabad, and Thiruvananthapuram. During the visit he met with a number of influential Indian politicians and officials during the visit, including Gujarat Chief Minister Bhupendra Patel, India's National Security Advisor, and Minister of External Affairs Dr. S. Jaishankar. The talks cantered on the two countries' bilateral relations. The delegation from NPP that he led also participated in an observation tour of Ahmedabad's agro-industries and agricultural areas. 

Anti-India Sentiments

In the run up to the September presidential election, AKD’s party had tried its luck on using anti-India sentiments for electoral gains. In May 2024, ahead of the elections, there was a hullabaloo over Indians issuing Sri Lanka on-arrival visa in Bandaranaike International Airport in Colombo, causing unnecessary delays and levying extra processing fees. The press in Sri Lanka misreported that the handling of the visa services was leased out to an Indian company quoting uninformed sources from the government. The Indian High Commission denied it immediately afterwards.

The fact of the matter was that the visa services were indeed outsourced to a foreign company named VFS Global following a cabinet decision on 11 September 2023. The Lankan government did issue a clarification to this effect soon afterwards but the damage had been done thanks to the fleet-footed social media where the video posted by a traveller of an Indian-looking staffer issuing visa at the airport went viral. In reality, VFS Global is a multinational company where venture Blackstone USA) and Kuoni and Hugentobler Foundation (KHF), Switzerland have majority shares. It is operating in in 151 countries with 3,388 centres worldwide. 

This issue sparked a protest on the streets in Colombo and people chanting anti-India slogans gathered in front of the National Immigration Office. A section of the Colombo media noted that this protest kicked off an India Out campaign in Sri Lanka. The protestors reportedly took a dig at perceived ‘Indian hegemony’ and as a corollary of the ‘Akhand Bharat’ strategy adopted by India today. One protestor was even heard as saying: “We see this incident not as a standalone issue, but as an interconnected issue of the wider Indian efforts to take over strategic sectors of our economy and our state.” All this indicated a precipitate hostile mood among some sections of the populace in Sri Lanka vis-à-vis India.

Moving from here, it was natural that the politicians would try to exploit this section of the electorate as well. As the campaign for the presidential election started the Indian factor came up in the manifestoes of different parties. But coming to NPP’s manifesto there was a reference to the wind power project being undertaken by Adani Green Energy in Sri Lanka. Reports suggested that the Adani Group was to invest over US$ 440 million over 20 years to develop 484 megawatts of wind power in the northeastern regions of Mannar and Pooneryn in Sri Lanka. There was a fundamental rights litigation in the Supreme Court of Sri Lanka where the petitioners had raised environmental concerns and lack of transparency in the bidding process, to grant the project to Adani Green Energy. In the run up to the presidential election, the NPP had promised to cancel the project. However, on 7 October, AKD’s cabinet took a decision to review the reconsider the project. It did not come up for discussion during AKDs visit to New Delhi, but this is under review and final decision would be taken, the government had indicated, after the parliamentary elections. Hence, this is an issue that is still hanging fire and would be taken up for a final decision in the days to come. Fortunately, unlike in the past in the Eastern Terminal case, the involvement of Adani Ports and SEZ Ltd. (51 per cent share) in developing this deep-water Colombo West International Terminal (CWIT) at the Colombo Port, a joint venture with John Keells Holdings (USA) and the Sri Lanka Ports Authority (SLPA) has not provoked much opposition yet.

In January 2022, AKD had raised his objections to the Lankan government agreeing to jointly develop Trincomalee Oil Tank Farm with India. He had called it selling of state assets and stated that his party, JVP, and its Trade Unions would not allow it to happen and would try their best to revert the agreements, including also transfer of shares of the Kerawalapitiya LNG Plant to a US Company!

The Trincomalee Oil Tank Farm represents a crucial strategic resource situated in China Bay, Trincomalee. This facility consists of 99 storage tanks, each capable of holding 12,000 kilolitres. Constructed by the British during World War II, these tanks have remained largely inactive for many years. However, recent initiatives have been undertaken to renovate and reactivate these tanks. In January 2022, the then Gotabhaya Rajapaksa government in Sri Lanka had signed a long-pending deal with Inda to jointly develop the Trincomalee Oil Tank Farm. Under this agreement, 14 tanks were to b e leased to Lanka IOC, a subsidiary of Indian Oil Corporation, for 50 years. Additionally, 61 tanks were to be managed by a joint venture company, Trinco Petroleum Terminal Pvt. Ltd., with 51% ownership by Ceylon Petroleum Corporation and 49% by Lanka IOC. It was heartening to see that after assuming presidentship, AKD has perhaps understood the value of staying the course on the Trico project as the joint statement tamely acknowledged the ongoing cooperation in the development of Trincomalee Tank Farms, and held that “both leaders decided to support the development of Trincomalee as a regional energy and industrial hub”.

The China Factor

The other issue that has raised Indian concerns in recent decades is the growing influence of China in Sri Lanka. In 2017, the Lankan government to leased its Hambantota port and 15,000 acres of land surrounding it for 99 years to a venture led by China Merchants Port Holdings Co. in return for $1.1 billion. This move helped ease repayment of the Chinese debt raised to build the port (about US$ 360 bn).

Moreover, China is also engaged in the Colombo Port City project, a massive land reclamation project aimed at creating a new financial district. China has a significant stake in the Colombo Port City project. The funding for this project is predominantly provided by the China Communications Construction Company (CCCC), while the China Harbor Engineering Company (CHEC), a subsidiary of CCCC, is tasked with land reclamation and the development of infrastructure. The focus of the project is on creating a world-class business and financial hub and building an International ‘Service Oriented’ Special Economic Zone.

Upon the completion of the project by the year 2040, Port City Colombo is projected to encompass approximately 6.3 million square meters of built-up area, accommodating a city population of 273,000 residents. Although the project is governed by the Colombo Port City Economic Commission, established by the Sri Lankan government, China has a substantial presence on a long-term basis in the city. Out of the total 269 hectares of land reclaimed for the City, approximately 88 hectares have been leased to China on a 99-year lease. Additionally, China has been offered a freehold on 20 hectares of land. Such pervasive Chinese control over the construction work and long-term presence in the upcoming city has promoted commentators to say that it would end up becoming a Chinese enclave!

China accounts for about 20 per cent of Sri Lanka’s external debt and its infrastructure-building activities within Sri Lanka point to its lasting interest in the island nation. It built the Mattala Rajapaksa International Airport, often referred to as the "emptiest airport in the world" with loans amounting to US$ 210 mn. It invested about US$450 mn on the controversial Norochcholai Coal Power Plant, in Puttalam, which was infamous for corruption and financial mismanagement related to the construction and operation of the plant. Apart from this there were grave environmental issues associated with it [emission of pollutants such as sulfur dioxide (SO2) and nitrogen oxides (NOx)] and numerous technical issues and breakdowns, leading to power outages and disruptions in electricity supply. Despite this the government is planning to add another 300 MW unit with Chinese help.

Among other projects being executed is the Moragahakanda Multipurpose Development Project which is a significant irrigation and water management initiative in Sri Lanka. The project aims to provide water for agriculture, drinking, and industrial purposes, benefiting the North Central, Northern, and Eastern Provinces and includes building of reservoirs, irrigation canals and hydro-electric plant at an expense of $1.3 bn. It is in its final stage and considered a milestone in Sri Lanka's efforts to enhance water security and support agricultural development. China also built the Colombo-Katunayake Expressway (CKE) at the expense of US$ 292 mn, which was opened to the public on 27 October 2013 and it provides a high-speed link between Bandaranaike International Airport and Colombo, significantly reducing travel time from 1.5 hours to approximately 20 minutes. The Matara-Kataragama Railway Line is being constructed now with an expense of US$366 mn aimed at extending the coastal railway line.

Apart from this China has made attempts to expand its naval presence in and around Sri Lanka. China has made several attempts to dock its naval vessels in Sri Lankan ports. Notable instances include: docking of Yuan Wang 5 naval vessel at Hambantota Port in August 2022 and Shi Yan 6 Chinese research ship docked at Colombo Port in October 2023. The latter vessel conducted joint marine scientific research with Sri Lankan scientists.

As the foreign minister of Sri Lanka indicated in his talk at an event organised by India Foundation in New Delhi on 18 December, even if he held a relationship with India as ‘close-knit’, his government would continue to engage China at the same time. As he stated, “As a new government, we hope to have a good relationship with China also. Not only India but also China and all other countries, even US Russia Cuba and North Korea. There is no difference, as an island we have to build up a relationship with all other countries.”

Here it is important to see how does AKD’s government handle the upcoming request from China, which has now plans to resume its maritime research activities in the Indian Ocean after a temporary one-year ban imposed by Sri Lanka, which ends in January 2025. On 18 December 2024, barely a day after AKD returned from India, Vice Chairwoman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), Ms. Qin Boyong, met him and expressed hope that marine research activities, which have been halted for various reasons, would resume after January 2025.

In this context, AKD’s pronouncement that he was committed to prevent the use of Sri Lankan territory against India "in any manner" signifies a notable shift in his party’s policy. This development has led many in India to feel that India has reclaimed its status as the most trusted partner of the island nation, effectively countering China's ambitions to enhance its influence in the Indian Ocean. AKD’s pledge is particularly noteworthy given that his party, the JVP, is known for its leftist and pro-China stance. This may suggest that the new Sri Lankan administration under his leadership will likely extend the one-year moratorium on the visits of all foreign research vessels, which is set to expire next month. In the past decade, the regular presence of Chinese vessels has emerged as a significant source of tension in the diplomatic relations between India and Sri Lanka.

The Joint Statement and Issues at Stake

The joint statement issued following the meeting with Prime Minister Narendra Modi addressed issues akin to those discussed after the visit of his predecessor, Ranil Wickremesinghe, in 2023. It highlighted India's dedication to assisting Sri Lanka in sectors such as agriculture and the digital economy. Additionally, it referred to the proposed Economic and Technological Cooperation Agreement (ETCA), for which 14 rounds of negotiations have already taken place.

Regarding the fisheries dispute, both parties maintained their established positions; however, Colombo is encouraged to facilitate an early dialogue between the fishermen's associations of both nations. Soon after the visit, on 23 December, the Sri Lanka Navy and Coast Guard seized two Indian fishing boats and apprehended 17 Indian fishermen for poaching in Sri Lankan waters during a special operation in the sea north of Mannar and according to a report, it would take the seized boats and fishermen to the Talaimannar Pier and hand them over to the Mannar Fisheries Inspector for legal proceedings. Sri Lanka sources say that so far during this year the Lankan Navy detained 72 Indian fishing boats and 554 Indian fishermen. There are repeated allegations of Indian fishermen resorting to bottom trawling in Sri Lankan waters, which needs to be discussed and addressed to resolve this issue once and for all.

While the 13^th Amendment to the Sri Lankan Constitution was not explicitly mentioned, India did emphasise the importance of reconciliation and urged Sri Lanka to honour its commitments to “fully implement” its Constitution and to conduct Provincial Council elections. This is an issue that has pestered the Lankan leadership a lot in the past. There were times when the former President Mahinda Rajapaksa would agree to implement in one-on- one meetings with the Indian leadership and retract on it afterwards.

It needs mention here that the JVP had conducted a vigorous campaign opposing the Amendment, which was a result of the 1987 India-Sri Lanka Accord. However, given the impressive mandate secured by the NPP coalition under his leadership in the parliamentary elections held on 14 November (especially in Tamil majority areas in Jaffna and Batticaloa), it is a historical opportunity for him to take up this issue with all the seriousness it deserves and kill it for ever and redefine Sri Lanka’s relationship with India.

In his statement, AKD acknowledged India's significant contribution to stabilizing Sri Lanka's economy after its collapse in 2022 and reaffirmed his commitment to fostering economic cooperation that emphasizes sustainable development and recovery. As the title of the joint statement suggested (Fostering Partnership for a Shared Future), the agreements established during this visit are intended to build upon the already existing foundation by promoting investment-driven partnerships, enhancing connectivity, and boosting trade. The visit marked the conclusion of various collaborative initiatives, ranging from energy partnerships to regional security cooperation.

Looking at the maturity shown by the JVP leader not to stir the boat of diplomatic engagement with India, a Sri Lanka observer noted that the symbolism of this visit was as important as its substance and the way AKD conducted himself indicated that he and his party had put their allegations of anti-Indianism and allegations of Indian expansionism behind and it might be marked as the “beginning of [their] socialisation in the high politics of foreign policy in the international system”.

As Prime Minister Narendra Modi noted in his press statement, India has demonstrated its role as a dependable ally during Sri Lanka's economic crisis, and can be relied upon as a trustworthy partner in Sri Lanka's developmental journey. He also pointed out that “physical, digital and energy connectivity shall be the key pillars of our partnership” and made an emphatic assertion that “our security interests are interconnected”. AKD has responded well by agreeing to take the process forward.

While the visit was managed very well by the external affairs ministry, all that can be said now is that there is scope for improvement. It was not in good taste to misspell the surname of the visiting dignitary; “Dissanayake” was flashed in banners, nameplates and even MEA statements on its website as “Disanayaka”, which was a much avoidable error. Well, all is well that ends well.

Select List of Readings

1. “English Translation of Press Statement by Prime Minister at the Joint Press Conference with the President of Sri Lanka”, MEA Website, 16 December 2024.
2. “Transcript of Special Briefing by Foreign Secretary on the State visit of President of Sri Lanka to India (December 16, 2024)”, MEA Website, 17 December 2024.
3. Charuka Peiris, “From default to development: India’s crucial role in Sri Lanka’s revival”, The Morning, 22 December 2024.)
4. “NPP team led by Anura Kumara concludes official visit to India”, Sunday Times, Colombo, 10 February 2024
5. “‘Hope to have good relations with China also’: Sri Lanka Foreign Minister Vijitha Herath”, The Newsmill, 17 December 2024.
6. “India supports debt restructuring and looks for long term investments”, Sunday Times, Colombo, 20 January 2203.
7. Ranga Jayasurya, “More Symbolism Less Substance in President’s Visit to India”, Daily Mirror, 18 December 2024,
8. Notes from the Field: Sri Lanka’s Revolutionary “Aragalaya”, 20 July 2022, Asia Foundation report.
9. “Dissanayake govt reconsidering permission to Adani Group’s power project in Sri Lanka”, The Telegraph Online, India, 14 October 2024
10. “Adani project: New Govt. slides from cancellation to review?”, The Daily Mirror, Colombo, 10 October 2024.
11. Chaturanga Pradeep Samarawickrama, “Controversy over foreigners issuing on-arrival visas at BIA”, Daily Mirror, Colombo, 2 May 2024
12. “New Visa process: Govt issues clarification”, Newswire.lk, 3 May 2024
13. “India Out Campaign Kicks off in Sri Lanka?”, Sri Lanka Guardian, Colombo, 3 May 2024.
14. Anbarasan Ethirajan, “Colombo Port City: A new Dubai or a Chinese enclave?”, BBC.com, 17 January 2022.
15. “Marine research activities to resume after January 2025”, Hirunews.lk, Colombo, 19 December 2024
16. “Who holds Sri Lanka’s external debt and how China is assisting Sri Lanka”, Financial Times, Colombo, 6 August 2024
17. https://www.dailymirror.lk/breaking-news/JVP-vows-to-revert-agreements-signed-to-sell-state-assets:Anura/108-229388
18. “JVP vows to revert agreements signed to sell state assets: Anura”, Daily Mirror, Colombo, 19 January 2022.