Prime Minister Modi of India and President Anura Kumara Disanayaka of Sri Lanka met in New Delhi on December 16, 2024, during the Sri Lankan President’s state visit to India. Their discussions were detailed and productive.
Both leaders confirmed that their countries’ relationship is strengthened by their deep cultural and historical connections, geographic closeness, and strong bonds between their citizens.
President Disanayaka expressed sincere thanks for India’s steady support to Sri Lanka during and after the major economic crisis in 2022. He shared his strong commitment to creating a better future for Sri Lankans through increased opportunities and steady economic growth, and hoped for India’s continued support. Prime Minister Modi assured him that India would remain fully committed to helping, as Sri Lanka holds a special position in India’s policies of ‘Neighbourhood First’ and ‘SAGAR’.
Both leaders noted that their countries’ relationship has grown stronger over the years and has significantly helped Sri Lanka’s social and economic development. Seeing potential for more cooperation, they committed to advancing their relationship into a comprehensive partnership that benefits people in both countries.
Political Exchanges
Recognizing the increased political interactions over the past ten years and how these have strengthened their ties, both leaders agreed to have more frequent meetings between their political leaders and ministers.
They also emphasized the importance of regular meetings between their parliaments to promote democratic values and share their best practices.
Development Cooperation
The leaders acknowledged how India’s development aid has positively impacted Sri Lanka’s social and economic growth. President Disanayaka appreciated that India continued supporting projects even during Sri Lanka’s debt restructuring. He also thanked India for converting some loan-based projects into grants, which helped reduce Sri Lanka’s debt burden.
Both leaders committed to working closely on development projects that benefit people, agreeing to:
- Complete ongoing projects like Phase III & IV of Indian Housing Project, renewable energy projects on three islands, and community development projects across Sri Lanka
- Support projects for the Indian Origin Tamil community, Eastern Province, and solar power for religious places in Sri Lanka
- Find new projects and areas where India can help, based on Sri Lanka’s needs and priorities
Training and Capacity Building
Recognizing India’s role in helping build Sri Lanka’s capabilities and the need for specialized training in various fields, the leaders:
- Agreed to train 1,500 Sri Lankan civil servants over five years through India’s National Centre for Good Governance
- Promised to explore more training programs for Sri Lankan officials in civil service, defense, legal, and other areas, based on Sri Lanka’s needs
Debt Restructuring
President Disanayaka thanked Prime Minister Modi for India’s help in stabilizing Sri Lanka’s economy through various forms of support, including emergency financing worth $4 billion. He acknowledged India’s crucial role in Sri Lanka’s debt restructuring process, particularly as co-chair of the Official Creditors’ Committee, which helped finalize debt restructuring discussions quickly. He also thanked India for providing $20.66 million to help Sri Lanka pay for completed projects under existing credit lines, which significantly reduced their debt burden during a critical time.
Prime Minister Modi reaffirmed India’s commitment to supporting Sri Lanka during difficult times and in its journey toward economic recovery, stability, and prosperity. The leaders instructed their officials to finalize discussions on their bilateral agreement regarding debt restructuring.
The leaders agreed that shifting from debt-based models to investment partnerships across sectors would create a more sustainable path for Sri Lanka’s economic recovery and growth.
Improving Transportation Links The leaders emphasized the importance of better connectivity, recognizing how their economies can complement each other. They were pleased with the restart of ferry service between Nagapattinam and Kankesanthurai, and directed officials to work on restarting ferry service between Rameshwaram and Talaimannar. They also discussed exploring the renovation of Kankesanthurai port in Sri Lanka using grant money from India.
Energy Cooperation
Both leaders stressed the importance of reliable, affordable, and timely energy resources. They agreed to:
- Move forward with the Sampur solar power project and increase its capacity based on Sri Lanka’s needs
- Continue discussing several proposals including:
- Supplying LNG from India to Sri Lanka
- Building a high-capacity power connection between both countries
- Working with UAE on a multi-product pipeline from India to Sri Lanka
- Jointly developing wind power in Palk Straits while protecting the environment
They also agreed to support developing Trincomalee as a regional energy and industrial center, noting the ongoing work on the Trincomalee Tank Farms.
Digital Technology Development President Disanayaka showed interest in adopting India’s successful digital systems for better governance and public services. Prime Minister Modi offered full support, and they agreed to:
- Speed up the Sri Lanka Unique Digital Identity (SLUDI) project
- Work together on implementing Digital Public Infrastructure in Sri Lanka
- Create a team to explore implementing digital systems based on India’s experience
- Extend UPI digital payments to benefit both countries
- Share knowledge about India’s digital systems like Aadhaar, GeM portal, and PM Gati Shakti
Education and Technology Cooperation
To support human resources and innovation in Sri Lanka, the leaders agreed to:
- Expand research collaboration in agriculture, aquaculture, digital economy, and health
- Explore partnerships between educational institutions
- Support cooperation between Indian and Sri Lankan startup organizations
Trade and Investment
The leaders noted that the India-Sri Lanka Free Trade Agreement (ISFTA) has improved trade between the countries but saw room for growth. They agreed to:
- Continue discussions on the Economic & Technological Cooperation Agreement
- Improve currency trade settlements between the two countries
- Encourage investments in key Sri Lankan sectors
- Continue working on finalizing a Social Security Agreement
Agriculture and Dairy Development
Both leaders expressed satisfaction with their ongoing work to develop Sri Lanka’s dairy sector, aiming to help the country become self-sufficient and ensure nutritional security.
Recognizing President Disanayaka’s focus on modernizing agriculture, both leaders agreed to form a joint working group to explore opportunities for comprehensive agricultural development in Sri Lanka.
Strategic & Defense Cooperation
Both leaders acknowledged their shared security interests and stressed the importance of open dialogue based on trust and transparency. They recognized common challenges in the Indian Ocean Region and committed to work together against traditional and non-traditional threats. As Sri Lanka’s closest maritime neighbor, President Disanayaka reaffirmed that Sri Lanka would not allow its territory to be used in ways that could harm India’s security or regional stability.
The leaders expressed satisfaction with ongoing defense cooperation through training, exchanges, ship visits, exercises, and capability building. President Disanayaka thanked India for providing a Dornier Aircraft for maritime surveillance and helping establish the Maritime Rescue and Coordination Centre. He praised India’s quick response in humanitarian assistance and disaster relief, and thanked the Indian Navy for their help in recent drug trafficking operations.
India committed to continue supporting Sri Lanka’s defense and maritime security needs. Both leaders agreed to strengthen cooperation by:
- Exploring a Defense Cooperation Agreement
- Developing cooperation in hydrography
- Providing defense platforms to enhance Sri Lanka’s capabilities
- Increasing joint exercises and maritime surveillance
- Supporting disaster management capabilities
- Enhancing training for Sri Lankan defense forces
Cultural and Tourism Development
Given their cultural connections and geographic proximity, the leaders agreed to strengthen cultural and tourism links. With India being Sri Lanka’s largest source of tourism, they committed to:
- Improving air connections between both countries
- Continuing talks on Sri Lankan airport development
- Encouraging Indian investment in Sri Lanka’s tourism infrastructure
- Creating frameworks for religious and cultural tourism
- Promoting educational partnerships to strengthen cultural and linguistic ties
Fisheries Issues
The leaders acknowledged fishing-related challenges and agreed to address them humanely, emphasizing the need to avoid aggressive behavior. They welcomed the recent fisheries working group meeting in Colombo and directed officials to continue working toward lasting solutions. President Disanayaka thanked India for helping develop Sri Lanka’s fishing industry, including projects at Point Pedro Fishing Harbour and Karainagar Boatyard.
Regional and International Cooperation
Both countries agreed to strengthen regional maritime security through bilateral and regional frameworks, welcoming the new Colombo Security Conclave. India supported Sri Lanka’s leadership of IORA and both leaders committed to strengthening BIMSTEC cooperation. President Disanayaka requested India’s support for Sri Lanka’s BRICS membership application, while Sri Lanka supported India’s bid for a UN Security Council non-permanent seat.
Conclusion
The leaders agreed that implementing these measures would strengthen their relationship and set new standards for neighborly ties. They directed officials to begin implementation and committed to continued leadership engagement. President Disanayaka invited Prime Minister Modi to visit Sri Lanka at his earliest convenience.
