India and Sri Lanka have a legacy of cultural, intellectual, religious and linguistic interaction and the relationship between India and Sri Lanka. India is Sri Lanka’s closest neighbour and its relation is more than 2500 years old. According to the Sri Lanka chronicles Dipavamsa, the Mahindra who was the son of Emperor Ashoka, introduced Buddhism in Sri Lanka in the 4^th Century BCE. Maritime trade was prominent between India and Sri Lanka. Ashoka is celebrated as a righteous king in both countries, who sought to bring the two regions closer not by conquest (Berighosha), but by cooperation, tolerance and non-violence (Dhammaghosha).

The modern Indo-Lankan relations must be seen in the deep cultural context. Even though the relations have been bumpy ever since the Indian Independence due to regional issues, the cooperation in Trade and investment has grown.

In this chapter first, we will discuss the historical evolution of Indo-Lankan relations in modern times. It will help us in the contextual understanding of the contemporary relation.

Historical Evolution of the Relation

Colonialization of Sri Lanka

Dutch was the first colonial power, which establish its control on coastal Sri Lanka. Later during the Napoleonic War in 1795, the British took control of coastal Ceylon from the Dutch. Later, the British Army took control of the interior of Sri Lanka in 1815 under the conditions of the Kandyan Convention. Despite being part of the British crown, it was not included in the Indian Empire.

Independence of Sri Lanka

Sri Lanka gained independence in 1948. It was majority a non-violence independence movement. After independence, the struggle between Indian Tamil and Sinhalese for power emerged.

Sinhalese Majoritarianism in Sri Lanka

Majoritarianism is a belief that the majority community should be able to rule a country in whichever way it wants, by disregarding the wishes and needs of the minority. Communal Divide in Sri Lanka Sinhalese are the Buddhists who comprise 75% of the population, whereas Tamils are Hindus. It is believed that Tamil came in the Chola time as invaders as well as Traders. There has been a power struggle between the two communities along with the cultural differences. Britishers exploited these differences and adopted a ‘divide and rule’ policy and favoured Tamil as compared to the Sinhalese in education and jobs. Thus, Sinhalese people felt isolated and oppressed. When Sri Lanka gained independence, such a divide sowed the seeds of Majoritarianism. Some of the majoritarian measures that were adopted: In 1956, an Act was passed to recognise Sinhala as the only official language, thus disregarding Tamil. The governments followed preferential policies that favoured Sinhala applicants for university positions and government jobs. A new constitution stipulated that the state shall protect and foster Buddhism. These government steps increased the feeling of alienation in the Sri Lankan Tamil.

The civil war in Sri Lanka

After independence, leaders of the Sinhala community sought to secure dominance over government by virtue of their majority. As a result, the democratically elected government adopted a series of Majoritarian measures to establish Sinhala Supremacy.

The Sri Lankan Tamils struggle for the recognition of Tamil as an official language, for regional autonomy and for equality of opportunity in securing education and jobs. However, it was denied for long by the government.

By the 1980s several political organisations were formed demanding an independent Tamil Eelam (state) in northern and eastern parts. Liberation Tigers of Tamil Eelam (LTTE), an insurgent group had hoped to establish a separate state for the Tamil minority. The distrust between the two communities turned into widespread conflict. It soon turned into a civil war. As a result, thousands of people from both communities were killed.

Indian role in the Sri Lankan Civil war

Indian Peacekeeping Force (IPKF) was deployed to enforce a ceasefire between Sri Lanka Tamil and LTTE. However, it was treated against the interest of the Tamil in Sri Lanka by the LTTE. To prevent Rajiv Gandhi from becoming the next PM, a suicide bomber killed Rajiv Gandhi on May 21, 1991, when he was campaigning for re-election in the General election in Tamil Nadu. It was this hostility of LTTE after which, the Indian government formally proscribed the LTTE as a terrorist group.

Now, India maintains a dual policy urging Sri Lanka to reach a political deal to address Tamil grievances. Also, India has implemented developmental assistance projects for internally displaced persons and underprivileged sections of the population in Sri Lanka.

Areas of cooperation:

Now, after discussing the brief history we will go through the contemporary aspect of the relationship as follows:

Economic Cooperation

• Trade: India has traditionally been among Sri Lanka’s largest trade partners, and the latter remains among India’s largest trade partners in SAARC. India- Sri Lanka had an overall bilateral merchandise trade of 5.45 US$ billion in 2021.

The two countries have had an FTA, i.e., the Sri Lanka Free Trade Agreement (ISFTA), which has led to an increase in the export of Sri Lankan Textile to India since 1998,

• Investment: India is among the top 5 foreign investors in Sri Lanka. According to the Central Bank of Sri Lanka, the total Foreign Direct Investment from India so far exceeds 2.2 US$ billion. In 2021, India was the largest source of Foreign Direct Investment, which amounted to US$ 142 million in the areas of petroleum retail, tourism and hotels, manufacturing, real estate, etc.

Likewise, investments by Sri Lankan companies in India are also increasing. For instance, Brandix (a garment city in Vishakhapatnam of about USD 1 billion), MAS holdings, Damro, etc.

• Financial Assistance: India is also one of the largest providers of financial assistance for various development infrastructure development projects.
  • Eleven lines of credit (LoC) have been extended to Sri Lanka by the EXIM bank in the last 15 years in sectors such as the amelioration of the railway line from Colombo to Matara, Madhu church-Tallaimannar, etc.
  • Recently, a $100 million line of credit (LoC) for undertaking a solar project in Sri Lanka was signed by the Sri Lankan government and EXIM bank in June 2021.
  • India has supported it for the IMF bailout.

Cooperation in Infrastructure and Technology

• Infrastructure development: In the Eastern Province of Sri Lanka, some progress has been made on projects that former Prime Minister Ranil Wickremesinghe had signed through MoUs in New Delhi in April 2017:
  • Development of Trincomalee Port and oil tank farms. Trincomalee Terminal is a World War II-era oil tank in the strategically located eastern Trincomalee district.
  • LNG terminals near Colombo.

The two sides signed the agreement on January 6, 2022, marking a major milestone in the long-dragging projects.

• Space cooperation: The successful launch of the South Asia Satellite (SAS) to boost communication and improve disaster links among its six neighbours has opened new horizons of engagement in the region.
• Economic and Technological Partnerships: In recent times, both countries have signed several agreements to promote cooperation in areas like technology, agriculture, and renewable energy. For example, in 2023, India signed an agreement with Sri Lanka to enhance the use of digital platforms for improving governance and economic growth. Further, in 2024 Sri Lanka and Mauritius launched the UPI in their countries.

Cultural contact:

• Tourism: India sends the highest number of tourists to the island nation every year. Tourism-related travel between India and Bangladesh has been bolstered after the initial impact of the COVID-19 pandemic. The conclusion of the Air Bubble agreement between the two countries in April 2021 helped facilitate movement between the two countries.
• Scholarship to study in India: The Indian Council for Cultural Relations also provides scholarships to Sri Lankans to study in India.
• Conserving Tamil Language: the Indian government is working with the Sri Lankan government for the preservation of the Tamil language.

People-to-people contact

People of Indian origin have settled in Sri Lanka and are engaged in business ventures, and each of these communities has an organization that organizes festivals and cultural.

• India has also introduced an e-visa scheme for Sri Lanka.
• Indian Railways is offering special packages for Sri Lankan tourists who want to come to India.

Military cooperation:

Both governments cooperate in two aspects, i.e., Terrorism and Issues of Safety in IOR.

Cooperation on Terrorism:

Indian peacekeeping force assisted the Sri Lankan armed forces in routing out terrorism during its civil war, in two ways:

1. Providing Intelligence: India provided intelligence before the Easter attacks of 2019, which Sri Lankans couldn’t act to prevent.
2. Support to build capabilities: India has lent more than USD 50 million to boost the counter-terrorism capabilities of the Sri Lankan forces.

In recent times, these capabilities have been utilised to counter terrorist activities related to Islamic fundamentalism.

• The 2019 Sri Lanka Easter bombings were the first acts of terrorism that occurred after the end of the civil war in 2009. A local Islamist terrorist group known as National Thowheeth Jama’ath was identified as responsible for this string of attacks, that killed more than 250 people.
• India provided the intelligence information to the Lankan authorities before this attack. However, the government in Sri Lanka failed to act upon it.

Military cooperation

India is one of the biggest suppliers for Srilanka along with other major suppliers such as China, Pakistan and Russia. The military cooperation has four dimensions:

1. Both countries conduct the Annual Defence Dialogue, which is the topmost institutionalised interactive mechanism between the two nations, chartering the future course of the relations between the armed forces of both countries.
2. Importance of Sri Lanka in security infrastructure: The strategic location of Sri Lanka’s Indian Ocean region is critical to the energy security maritime commerce of nations, which is why the concept of “strategic Unity” between the two countries has long been considered essential for India’s security.
3. Military Exercise: both countries conduct the SLINEX naval exercise and Mitra Shakti bilateral army exercise. Although Sri Lanka also receives training assistance from China and Pakistan.
4. Support from India’s partners: India has expressed its willingness to work with other minded nations, such as Japan and the US, to invest in Sri Lanka- a change in stance.

Areas of Divergence:

Tamil issues:

The most serious problem that affected the India Sri Lanka relations is the conflict between Tamil minorities and Sinhalese in Sri Lanka. India’s support for the rights of Tamil minorities had created tension between the two countries, especially in 1956, when legislation was introduced, which made “Sinhalese” the only national language of Sri Lanka.

The Tamil population was sidelined and denied equal opportunities available to the Sinhalese population. We discussed this issue earlier in this chapter.

Issue of Katchatheevu Island

The Kachchatheevu Island is located in present-day Ramanathapuram, Tamil Nadu, and is contested by both India and Sri Lanka.

In the early 20^th century, Sri Lanka claimed territorial ownership over the islets, so in the year 1974, India ceded the island to Sri Lanka through a joint agreement. In 1976, through an exchange of letters, both countries agreed to stop in each other’s waters. Still, Tamil fishermen believe that Kachchatheevu is traditionally their territory, so they have a right to fish there, creating tension between the two.

Hambantota port development issue:

• In the 2000s, India passed up offers to build the port in Hambantota, Kankesanthurai and Colombo despite Sri Lanka’s pressing need for infrastructure. However, the Chinese companies stepped in and won the project, which led to the deterioration of the relationship between the two countries.

Fishermen issues:

The ties between India and Sri Lanka are contentious. Many fishermen from Tamil Nadu who cross the maritime boundary to catch fish get arrested in Sri Lanka, and their boats cease or are destroyed.

The Indian fishermen have over the years over-exploited our own Exclusive Economic Zone, depleting the fish resources. Therefore, fishermen are often enticed by the plentiful catch in the less exploited Sri Lankan waters or waters near the Indo-Pakistan maritime boundary.

Note: Exclusive Economic  (EEZ) is a zone within 200 nautical mile distance from the coast. A nation (or its citizens) cannot exploit the resources of another country’s EEZ as per the UN Convention on the Law of the Seas (UNCLOS). Any fisherman crossing into an EEZ of another country is in direct contradiction of this law.

But, What causes Fishermen issues?

This situation has been aggravated due to the following reasons:

1. Trawler owners’ greed for profit: For example, the incursion into Sri Lankan waters is driven by trawler owners who force their poor employees to do so.
2. Problems of Navigation: Often fishermen don’t remain aware of their location in the open seas.

Way forward:

For Wider cooperation strengthening of various policy mechanisms is required:

• Strengthening SAARC mechanisms for Cooperation.
• Upgradation of CEPA trade agreement to a new Indo-Lanka Economic and Technology Cooperation Agreement (ETCA) to boost cooperation in technical areas, scientific expertise, research amongst institutions, boost standards of goods and services able to compete on the global market, etc.
• Completing the projects that have already been announced to show a breakthrough. India must show its ability to deliver on time.

India needs to pick its long-term interests vis-a-vis Sri Lanka and not cater to domestic political issues. It must be realised that the pillar of bilateral ties rests on the development of projects and economic relations.

Indian Perspective on the Fishermen Issue

The causes of Concern: 1. This is particularly devastating for the fishermen. Fishermen often get caught in the fluctuating fate of bilateral relations. The illegal fishing by Indian Tamil fishermen in Sri Lankan waters adversely affects the livelihood of its war-affected fishermen. Harsh treatment: For example, Sri Lanka reacts violently, opening fire. Sluggish mechanisms of repatriation: Ideally, prisoners should be released and repatriated the day they complete their prison sentence. However, this actually takes months. 2.  It is also a serious security concern: It is not only the Indian fishermen who cross the boundary, often Sri Lankan and Pakistani fishermen are found in Indian waters too. Terrorists trained by the Pakistani agencies have used this route to attack India in the past. In the 2008 Mumbai terror attack, the terrorists sailed in a hijacked Indian fishing. Similarly, various attacks were conducted by LTTE by taking a sea route into India. Indian nationals in foreign Jails: Pakistan: Recently, an Indian fisherman was killed in firing by the Pakistan Maritime Security Agency (PMSA) off the Gujarat coast. According to the Gujarat government, a total of 345 fishermen from the State were lodged in Pakistan jails as of December 2020. According to the National Fishworkers Forum, there are 558 Indian fishermen in Pakistani jails and 74 from Pakistan in Indian prisons. The Forum calculates that 1,200 Indian fishing vessels are in Pakistan’s custody. Sri Lanka: Sri Lanka has reacted violently and their navy has fired upon these fishermen and killed them on the spot. In an incident in 2021, Four fishermen from Tamil Nadu — one of them a Sri Lankan Tamil refugee living in India — died allegedly when the Sri Lankan Navy was about to arrest them. Even fishermen venturing near the India-Sri Lanka maritime border often fall victim though both countries maintain cordial bilateral ties. Bangladesh: Many Indian villages along the borders with Bangladesh also become theatres of conflict, as communities often find it difficult to reconcile with international borders that divide their traditional spheres of economic and social activities. Steps taken to resolve the issue: Pakistan – Joint judicial committee: In 2007, both countries formed a joint judicial committee comprising eight retired judges — four each from India and Pakistan — to facilitate the exchange of civilian prisoners. The mechanism has been defunct since 2013, and attempts to revive it in 2018 did not bear fruit. Agreement On Consular Access In 2008 i. Section 4:  “Each government shall provide consular access within 3 months to nationals of one country, under arrest, detention or imprisonment“. ii. Section 5:   “Both governments agree to release and repatriate persons within 1 month of confirmation of their national status and completion of sentences.” Limitation: Though the agreement does not state a time limit, there are numerous instances in which both countries have not confirmed nationality for as long as 18 months, during which the arrested men languish in jails. Sri Lanka: A committee set up by Sri Lankan authorities: to find a permanent solution to the incursions by Indian fishermen. Joint Working Group on fisheries: resumed in 2021 after a three-year gap for discussions to resolve the standing issues. It was initially agreed that there would be no violence or loss of life in the handling of the fishermen and that a hotline would be established between the respective Coast Guards. This however has not happened. Long-term Solutions to resolve the issue: 1. Providing Alternatives to Fishermen: There are plans to wean away Tamil Nadu fishermen from the tendency to exploit the remaining fishery resources on the Sri Lankan side by replacing their trawlers with deep-sea fishing vessels. But this has not really taken off. 2. Renegotiation with Sri Lanka: Attempts to forge a negotiated settlement through direct talks involving fishermen from both sides. This has also reached a stalemate. 3. Joint Patrolling: Sri Lanka favours joint patrolling by both countries and a ban on unsustainable fishing practices by Tamil Nadu fishermen — such as bottom trawling — but the latter wants a lengthy phase-out period. 4. Severely curtail unauthorised fishing. 5. Helping fishermen in an orderly transition to sustainable use of resources from all of the South Asian countries.