President of Sri Lanka, Anura Kumara Dissanayake(AKD), visited India from December 15 to 17,2024, marking his first bilateral trip to India after Sri Lanka’s presidential and parliamentary elections. He was accompanied by Foreign Minister of Sri Lanka Vijitha Herath and Deputy Minister of Finance Anil Jayantha Fernando. This visit was undertaken at the invitation of the Indian Prime Minister(PM) Narendra Modi.
- During the visit, President Dissanayake held discussions with Indian PM Narendra Modi and President Droupadi Murmu on various bilateral issues of mutual interest.
- He also participated in a business event in New Delhi(Delhi) aimed at strengthening investment and commercial ties between India and Sri Lanka and also visited Bodh Gaya(Bihar).
Highlights of the Visit:
MoUs and Agreements:
India and Sri Lanka sign two agreements on Double taxation, capacity building and training in the presence of Sri Lankan President Anura Kumara Dissanayake and PM Narendra Modi in New Delhi(Delhi).
i.Protocol Amending the Agreement on Double Taxation:An agreement was signed to avoid double taxation and prevent fiscal evasion related to income taxes.
- Representatives: Vijitha Herath (Minister of Foreign Affairs, Foreign Employment & Tourism,Sri Lanka) and Subrahmanyam Jaishankar (Minister of External Affairs of India).
ii.MoU on Training and Capacity Building for Civil Servants:A Memorandum of Understanding (MoU) was signed between National Centre for Good Governance (NCGG), Government of India(GoI) and Sri Lanka Institute of Development Administration (SLIDA), Sri Lanka, focuses on training and capacity building for Sri Lankan civil servants.
- Representatives: Kshenuka Senewiratne (High Commissioner of Sri Lanka to India) and Vikram Misri (Foreign Secretary of India).
India – Sri Lanka Joint Statement:
Sri Lankan President Anura Kumara Dissanayake along with PM Narendra Modi issued a joint statement titled “Fostering Partnerships for a Shared Future” which outlinined a wide range of collaborative initiatives, from energy partnerships to regional security cooperation.
i.Financial Assistance for Students:A financial assistance scheme was provided to support 100 new students annually from the University of Jaffna and Eastern University in Sri Lanka, until the completion of their academic courses.
- This initiative aims to enhance educational opportunities for students in Sri Lanka fostering bilateral ties between the two nations.
ii.Grant Assistance for Signaling Project:A grant of USD 14.9 million was funded for the signaling project on the Maho-Anuradhapura section of the railway line in Sri Lanka.
- This project aims to improve the infrastructure and connectivity between critical regions, benefiting both nations.
Note: Sri Lanka offers visa-free entry to Indian nationals starting from October 1, 2024 and 34 other countries for 6 months, following the suspension of the e-visa portal.
Key Developments of India-Sri Lanka Bilateral Ties:
i.Development Cooperation:To work together for the timely completion of ongoing projects, Phase III & IV of Indian Housing Project, 3 (three) Islands Hybrid Renewable Energy Project and High Impact Community Development Projects across Sri Lanka.
- Implementation of projects for the Indian Origin Tamil community, Eastern Province and solar electrification of religious places in Sri Lanka.
ii.Financial Assistance: The Government of India (GoI) extended financial assistance of USD 20.66 million to settle payments due from Sri Lanka for projects completed under, existing Lines of Credit(LoC).
iii.Energy and Infrastructure Collaboration:
- Sampur solar expansion: India and Sri Lanka are working on a solar power project in Sampur.
- Offshore wind in Palk Strait: India and Sri Lanka are exploring offshore wind energy development in the Palk Strait region.
- India, Sri Lanka and the United Arab Emirates(UAE) have agreed to build a multi-product pipeline from India to Sri Lanka to ensure a reliable and affordable energy supply.
- As part of the ongoing efforts to ensure energy security, the two countries also discussed Liquefied Natural Gas (LNG) supplies from India to Sri Lanka, the establishment of a high-capacity power grid interconnection between the two countries.
iv.Strategic and Defence Support: India supports Sri Lanka’s maritime security and defence capabilities with provisions like ‘Dornier aircraft’ and joint exercises.
v.Education, Digitalization and Trade:To foster cooperation between Start-up India and Information Communication Technology Agency of Sri Lanka (ICTA), including mentorship for Sri Lankan start-ups.
- India’s expertise in digitization is supporting Sri Lanka’s Digital Public Infrastructure (DPI), including the Sri Lanka Unique Digital Identity (SLUDI) project.
- To promote digital financial transactions by extending the use of Unified Payment Interface (UPI) digital payments for the benefit of both countries.
- To enhance Indian Rupee(INR)–Sri Lankan Rupee(LKR) trade settlements between the two countries.
vi.Regional Cooperation and Multilateral Engagement:Both countries support regional stability through platforms like Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and Indian Ocean Rim Association (IORA).
- India backs Sri Lanka’s bid to join Brazil, Russia, India, China, and South Africa (BRICS) and its United Nations Security Council (UNSC) candidacy for 2028-2029.
About Sri Lanka:
Sri Lanka, India’s closest maritime neighbor in the Indian Ocean Region plays a key role in India’s SAGAR (Security and Growth for All in the Region) and ‘Neighbourhood First’ policy.
- India stands as Sri Lanka’s largest trading partner. The bilateral trade between the two countries reached USD 5.5 billion in 2023-24.
President- Anura Kumara Dissanayake
Prime Minister (PM)-Harini Nireka Amarasuriya
Capital- Colombo
Currency- Sri Lankan Rupee (LKR)
