Strengthening relations between India and Sri Lanka

Strengthening relations between India and Sri Lanka

GS-2: IR

(UPSC/State PSC)

Important for Prelims:

About Sri Lanka, Asian Development Bank (ADB), renewable energy company U-Solar.

Important for Mains:

Importance of Sri Lanka for India, Challenges for India, Way Forward, Conclusion.

05/03/2024

Why in news?

Recently, Sri Lanka awarded the construction of three solar and wind hybrid power plants to an Indian company after the tender accepted by a Chinese firm was cancelled.

  • Both China and India are competing for major infrastructure projects in Sri Lanka, which is currently emerging from its worst economic crisis since independence from Britain in 1948.

Main points:

  • U-Solar, a renewable energy company based in India's technology hub Bengaluru, has been awarded the contract for the construction of buildings for these projects.
  • Notably, the project, which was initially financed by an Asian Development Bank (ADB) loan, was temporarily halted two years ago after India raised concerns over China's involvement.
  • The project has been revived by the Sri Lankan Ministry of Energy and is now fully funded by a Government of India grant of $11 million.
  • Combined, these three projects will have a total renewable energy capacity of 2,230 kilowatts and will be located on islands near the northern city of Jaffna, which is close to India's southern coast.

Significance:

  • With this step, India may get strategic and economic benefits by reducing China's dominance in the Indian Ocean.
  • This will reduce India's long-standing concerns about growing Chinese influence in the island nation of Sri Lanka, which is located near major global shipping lanes and which India considers within its sphere of influence.

About Sri Lanka:

  • Sri Lanka is an island country located in the Indian Ocean in South Asia. Sri Jayewardenepura Kotte is its legislative capital, and Colombo is its largest city and center of commerce.
  • Sri Lanka is located on the Indian plate and is geographically separated from the Indian subcontinent by the Gulf of Mannar and the Palk Strait.
  • The Mahaweli River (Great Sandy River) is a 335 km (208 mi) long river, which is recognized as the longest river in Sri Lanka.
  • This island was under British rule since 1815. Independence was granted in 1948 but the country remained a dominion of the British Empire until 1972.
  • Sri Lanka attained the status of a republic in 1972. The current Constitution of Sri Lanka prescribes it as a republic and unitary state governed by a semi-presidential system.

Why is Sri Lanka important for India:

  • Maritime Security: Sri Lanka is geographically located near key chokepoints – the Gulf of Aden, the Strait of Hormuz and the Strait of Malacca. Sri Lanka also has a list of highly strategic ports located in the busiest sea routes of communication. Thus, a strong presence in the island has broader strategic importance in countering piracy and ensuring smooth global maritime trade.
  • Countering Chinese presence: China's strategic interests over India have led it to increase its presence in the Indian Ocean through strategies such as 'String of Pearls'. One of its major strongholds is the Hambantota port in Sri Lanka. However, a stronger relationship with Sri Lanka could help India counter such strategies.
  • Counterterrorism: In April 2019, the island nation was rocked by a series of coordinated Islamic terrorist suicide bombings. The presence of such radical elements in the country can serve as a potential launch pad for terrorists targeting India.
  • Economic: Sri Lanka is one of India's largest trading partners in SAARC. The deep water trans-shipment hubs in Sri Lanka are important for India's maritime trade. Sri Lanka also has an intrinsic role in pursuing the blue economy through sustainable management and utilization of marine resources.
  • Diaspora: Both the countries share strong ethnic and cultural ties since ancient times. This continues today in the form of tourist circuits, Buddhist pilgrimages and other cultural exchanges.

Challenges for India:

  • Chinese Investment: China has investments in many projects in Sri Lanka, including the Colombo International Financial Centre, the Colombo-Kandy Highway, oil refineries and port cities next to the Colombo Port.
  • Chinese Debt Trap: Currently, the island state owes a large debt to China. This has forced the country to make major concessions on Hambantota after it was forced to sign a 99-year lease with China for the port after it was unable to repay the loan to develop the project.
  • Pro-China government: The previous Rajapaksa governments were seen as governments sympathetic to China. While the current government has talked about an “India First” policy, it remains to be seen how it will evolve in reality.
  • SAARC vs BIMSTEC: Sri Lanka wants to see cooperation and progress in SAARC, while India believes that all efforts to strengthen regional cooperation should be directed towards BIMSTEC.
  • Issue of Tamils: India has always been sympathetic to the needs of the Sri Lankan Tamils. This stance has forced India to take action against Sri Lanka in the UNHRC in cases related to war crimes.
  • Constitutional instability: The Constitution of Sri Lanka has been changed 19 times since 1978, creating a lot of uncertainty and confusion.
  • Environmental concerns: The island nation's relative prosperity will be threatened by unsustainable fishing, rising sea levels and climate change. They need strong investment to protect the islands and it remains to be seen whether India can meet this demand.

Way forward:

  • Strengthen ties: Since the 2019 elections, India has moved quickly with development projects and other assistance to bring Sri Lanka back into the fold. Now India has to ensure timely completion of these projects and assure its position as a reliable partner.
  • Economic support: New Delhi's economic outreach, like credit lines, is important to help Sri Lanka break free from Beijing's "lever-for-leverage" model of diplomacy. Furthermore, to deepen its engagement with the Sri Lankan economy, India needs to encourage its private sector enterprises (such as telecommunications) to invest in the sector.
  • Resolve fishermen issues efficiently: India and Sri Lanka have agreed to set up a Joint Working Group (JWG) as a mechanism to help find a permanent solution to the fishermen issue. They need to be more proactive in dealing with the issue of detention of fishermen in a humane manner.
  • Security Cooperation: Both countries should strengthen cooperation in the areas of terrorism, radicalism and drug trafficking through measures such as regular intelligence sharing and frequent joint security exercises. India should also emphasize reconciliation efforts for Tamils while being sensitive to Sri Lanka's security concerns
  • Benefits of soft diplomacy: India should use its cultural aspects such as diaspora, films, music and people-to-people interactions to strengthen ties with Sri Lanka.
  • Sustainable Development: India is a global leader in efforts for sustainable development and combating climate change. India can help Sri Lanka adapt to climate change through deeper involvement in renewable energy, sustainable fishing and coastal zone management.
  • Strategic Cooperation: India has signed agreements with countries like US and France to use their naval facilities in Djibouti, Diego Garcia etc. when required. In this sequence, India should explore closer cooperation with countries like Australia and African countries to counter Chinese growth in the Indian Ocean.

Conclusion:

This “deal” represents a major victory for India over China. However, China is also Sri Lanka's largest bilateral lender, accounting for about 10 percent of the island nation's $46 billion external debt at the time of the government default at the peak of the crisis in 2022. These three projects, built with Indian assistance, underline the importance of the bilateral energy partnership.

Source: Indian Express

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Mains Question:

Despite long-standing issues, recent events provide a new opportunity for India and Sri Lanka to enhance bilateral engagement. Discuss.