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President Anura Kumara Dissanayake, currently on an official three-day visit to India, held discussions with Indian Prime Minister Narendra Modi yesterday (16) at the Prime Minister’s official residence, Hyderabad House. Following the discussions, Memorandums of Understanding (MoU) on the avoidance of double taxation and capacity building for government officials were exchanged in the presence of the leaders of both countries. During a joint press briefing, President Dissanayake highlighted that he is well aware of the special importance Sri Lanka holds within India’s foreign policy. Prime Minister Modi expressed his delight that President Dissanayake chose India for his first official foreign visit as the President of Sri Lanka. The discussions also focused on strengthening Sri Lanka’s ties with India by establishing electricity grid connections and a multi-product petroleum pipeline. These initiatives aim to provide technical support to Sri Lanka in the areas of physical, digital, and energy infrastructure, marking a new chapter in bilateral relations with a forward-looking vision. Further, both leaders had in-depth discussions on advancing Indian development cooperation projects. This includes support for upgrading the signalling system on the Anuradhapura railway line and upgrading the Kankesanthurai Port. Under India’s educational cooperation programme, scholarships for 200 students from universities in Jaffna and the Eastern Province are set to be provided monthly starting next year. Prime Minister Modi also agreed to train 1,500 Sri Lankan civil servants in India over the next five years. Additionally, India will collaborate on improving housing, renewable energy, and infrastructure in Sri Lanka, alongside enhancing the agriculture, dairy, and fisheries sectors. President Dissanayake stated that Sri Lanka will never allow its territory to be used in a way that threatens the security of India and the stability of the region. Under the Colombo Security Conclave, the two leaders discussed enhancing collaboration in maritime security, counterterrorism, cyber security, anti-trafficking, combating organised crime, humanitarian assistance, and disaster relief. Prime Minister Modi hosted a luncheon in honour of President Dissanayake. During the meeting, President Dissanayake extended an invitation to Prime Minister Modi to visit Sri Lanka. Meanwhile, India and Sri Lanka issued a joint statement followed by the talks between the leaders of the two countries and their delegations. Both leaders acknowledged that bilateral ties had deepened over the years and contributed significantly to the socio-economic development of Sri Lanka. Underscoring the potential for further cooperation, both leaders affirmed their commitment to progress the relationship between India and Sri Lanka to a mutually beneficial, comprehensive partnership for the well-being of the peoples of the two countries. Some of the key highlights of the joint statement are as follows: Political Exchanges Both leaders agreed to further intensify political engagements at leadership and ministerial levels. The two leaders also underscored the importance of regular Parliamentary level exchanges to promote democratic values and share expertise on their institutional best practices. Development Cooperation The two leaders acknowledged the positive and impactful role of India’s development assistance to Sri Lanka that has significantly contributed to its socio-economic growth. President Dissanayake appreciated India’s continued support for the implementation of projects despite the ongoing debt restructuring. Reaffirming their commitment to work closely in further intensifying people-oriented development partnership, both leaders agreed to: (i). Work together for the timely completion of ongoing projects such as Phase III and IV of Indian Housing Project, three Islands Hybrid Renewable Energy Project and High Impact Community Development Projects across Sri Lanka; (ii). Extend full support towards timely implementation of projects for the Indian-origin Tamil community, Eastern Province, and solar electrification of religious places in Sri Lanka; (iii). Identify new projects and areas of cooperation for development partnership, in accordance with the needs and priorities of the Government of Sri Lanka. Training and Capacity Building (i). Agreed to organise focused training of 1,500 Sri Lankan civil servants across ministries and departments over a period of five years through the National Centre for Good Governance in India. (ii). Committed to explore further training programmes for Sri Lankan officials in civil, defence and legal domains among other areas, in keeping with the requirements of Sri Lanka. Debt Restructuring President Dissanayake thanked Prime Minister Modi for India’s support in stabilising the Sri Lankan economy through unparalleled and multi-pronged assistance including emergency financing and forex support worth US$ 4 billion. He acknowledged India’s crucial assistance in Sri Lanka’s debt restructuring process. He further thanked the Government of India for extending financial assistance of US$ 20.66 million to settle payments due from Sri Lanka for projects completed under existing Lines of Credit. Underscoring the close and special ties with Sri Lanka, Prime Minister Modi reiterated India’s consistent support to the country in times of need and in its quest for economic recovery and stability, and prosperity for its people. The leaders instructed officials to finalise discussions on the bilateral MoU on Debt Restructuring. Both leaders agreed that a strategic shift from debt-driven models towards investment-led partnerships across different sectors would ensure a more sustainable path to economic recovery, development and prosperity in Sri Lanka. Building Connectivity (i). While expressing satisfaction at the resumption of the passenger ferry service between Nagapattinam and Kankesanthurai, they agreed that officials should work towards the early recommencement of the passenger ferry service between Rameshwaram and Talaimannar. (ii). Explore the possibility of jointly working on rehabilitation of Kankesanturai Port in Sri Lanka, with grant assistance from India. Energy Development (i). Take steps towards the implementation of the solar power project in Sampur and further augment its capacity. Continue consideration of the several proposals which are in different stages of discussion including: (a) supply of LNG from India to Sri Lanka; (b) establishment of a high-capacity power grid interconnection between India and Sri Lanka; (c) cooperation amongst India, Sri Lanka and UAE to implement a multi-product pipeline from India to Sri Lanka for supply of affordable and reliable energy; and (d) joint development of offshore wind power potential in the Palk Strait, while prioritising environmental protection. People-Centric Digitisation (i). Expedite implementation of Sri Lanka Unique Digital Identity (SLUDI) project to aid the country in its efforts to improve delivery of government services to the public. (ii). Collaborate on avenues to fully roll out Digital Public Infrastructure (DPI) in Sri Lanka with assistance from India. (iii). Establish a Joint Working Group to explore the implementation of a DPI stack in Sri Lanka based on experience and systems already established in India, including advancing ongoing technical discussions on the implementation of DigiLocker in Sri Lanka. (iv). Promote digital financial transactions by extending the use of UPI digital payments for the benefit of both countries and in keeping with payment systems related regulatory guidelines of both countries. (v). Continue bilateral exchanges to garner learnings from India’s Aadhaar platform, GeM portal, PM Gati Shakti digital platform, digitized Customs and other taxation procedures, with a view to exploring the benefits of establishing equivalent systems in Sri Lanka. Education and Technology (i). Expand collaboration in research and development in sectors such as agriculture, aquaculture, digital economy, health and other areas of mutual interest. (ii). Explore cooperation between educational institutions of both countries. (iii). Foster cooperation between Start-up India and Information Communication Technology Agency of Sri Lanka (ICTA), including for mentorship for Sri Lankan start-ups. Trade and Investment Cooperation The two leaders appreciated that the India–Sri Lanka Free Trade Agreement (ISFTA) has enhanced the trade partnership between the two countries. They agreed to: (i) continue discussions on the Economic and Technological Cooperation Agreement; (ii). enhance INR-LKR trade settlements between the two countries; and (iii). encourage investments in key sectors in Sri Lanka to enhance its export potential. Agriculture and Animal Husbandry Noting President Dissanayake’s emphasis on agricultural modernisation, the two leaders agreed to establish a Joint Working Group to examine possibilities for the comprehensive development of the agricultural sector in Sri Lanka. Strategic and Defence Cooperation Recognising shared security interests of India and Sri Lanka, both leaders acknowledged the importance of regular dialogue based on mutual trust and transparency and giving primacy to each other’s security concerns. India being Sri Lanka’s closest maritime neighbour, President Dissanayake reiterated Sri Lanka’s stated position of not permitting its territory to be used in any manner inimical to the security of India as well as towards regional stability. Both leaders agreed to advance maritime and security collaboration. President Dissanayake thanked India for its support through the provision of a Dornier aircraft for maritime surveillance and establishment of the Maritime Rescue and Coordination Centre in Sri Lanka amongst other assistance vital for Sri Lanka to enhance its maritime domain awareness. He further appreciated India’s role as a ‘first responder’ for Sri Lanka in the field of Humanitarian Assistance and Disaster Relief. Importantly, the recent success in collaboration efforts of Indian and Sri Lanka Navies in the seizing of vessels trafficking a large quantity of narcotics with suspects was mentioned and President Dissanayake expressed his gratitude to the Indian Navy. They agreed to: (i). explore the possibility of concluding a framework agreement on defence cooperation; (ii). foster cooperation in hydrography; (iii). provision of defence platforms and assets to augment Sri Lanka’s defence capabilities; (iv). intensify collaboration through joint exercises, maritime surveillance, and defence dialogue and exchanges; (v). extend assistance to strengthen capabilities of Sri Lanka on disaster mitigation, relief and rehabilitation; and (vi). enhance capacity building and training for Sri Lankan defence forces. Cultural and Tourism Development The two leaders committed to: (i). enhancing air connectivity to various destinations in India and Sri Lanka, while noting the successful resumption of flights between Chennai and Jaffna; (ii). continuing discussions on the development of airports in Sri Lanka; (iii). promoting Indian investments for the development of tourism infrastructure in Sri Lanka; (iv). establishing a facilitatory framework for development of religious and cultural tourism; and (v). promoting academic linkages between educational institutions for the promotion and advancement of cultural and linguistic ties between the two countries. Fisheries Issues Acknowledging the issues faced by fishermen on both sides and factoring the livelihood concerns, the leaders agreed on the need to continue to address these in a humanitarian manner. They welcomed the recent conclusion of the Sixth Joint Working Group Meeting on Fisheries in Colombo. Regional and Multilateral Cooperation Both leaders agreed to jointly pursue strengthening regional maritime security, both bilaterally and through existing regional frameworks. India conveyed its full support for Sri Lanka’s Chairmanship of the IORA. Both leaders also underlined their commitment to further strengthen and enhance regional cooperation under BIMSTEC. President Dissanayake requested Prime Minister Modi’s support for Sri Lanka’s application to become a member of the BRICS. Prime Minister Modi welcomed Sri Lanka’s support to India’s candidature for a non-permanent seat on the UN Security Council for 2028-2029.
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