Sri Lanka is situated South-East of Peninsular India in the Indian Ocean, separated from the Indian sub-continent by the Palk Strait, 27 km at the narrowest point.

The relations go back to the times of the advent of Buddhism. Buddhism as a movement spread over Sri Lanka some 2000 years ago. The earliest mention of Sri Lanka dates back to the time of the Ramayana. Ravana, the king of Lanka, who held Sita captive in Lanka, was rescued by Ram with the help of Hanuman, who was in a way India’s first diplomat, and who built the Adams Bridge to help Ram reach Lanka.

 Besides being a close neighbour, Sri Lanka is also one of the members of the South Asian Association for Regional Cooperation (SAARC). India shares a warm and cordial relations with SriLanka.

India’s policy towards Sri Lanka has been intricately linked with the plight of the Sri Lankan Tamils and Tamils of Indian origin in Sri Lanka. Since the late 1960s India has been involved in attempting to resolve the differences between them and the Sinhala majority, which was the cause of much tension and violence in Sri Lanka. In the late 80’s India’s relations with Sri Lanka became among the most complex, difficult and sensitive to manage in South Asia, with the signing of Indo-Sri Lanka Accord and deployment of Indian Peace Keeping Force (IPKF) at Sri Lankan request. During thepast few years, following IPKF withdrawal and adoption of a non-intrusive policy by India, bilateral relations have, however, stabilised and become relatively tension-free.

Main Elements

• A conscious endeavor to adopt a non-intrusive approach towards the ethnic problem. India favours a negotiated political solution to this problem.
• Improving and strengthening bilateral relations in all fields of mutual interest especially in the economic sector;
• In the multi-lateral context, increased cooperation with the Government of Sri Lanka on a positive and pragmatic basis, with a thrust in economic areas.

There has been a wide spread appreciation for India’s present low key policy towards the ethnic conflict in Sri Lanka and the firm line taken by India against the Liberation Tigers of Tamil Eelam (LTTE) - (The LTTE has been banned in India). In line with India’s consistent support for a negotiated settlement, India has maintained that the devolution package announced by the Sri Lankan Government forms a reasonable basis for negotiations towards achieving this settlement. On the political side, the relations are being marked by an increasing spirit of mutual understanding. The political contacts at highest levels are a regular feature of bilateral exchanges.

In January 1997, India and Sri Lanka concluded an agreement on Promotion and Protection of Bilateral Investments. India also extended a credit line of US$ 30 million to Sri Lanka in January, 1996.India and Sri Lanka have an active programme of cooperation in the field of Science and Technology. The two countries have identified thrust areas such as microelectronics, satellite applications, alternative sources of energy; dairy development etc.Cultural bonds between the two countries are long standing and deep.

Sri Lankan Position onImportant Issues

Expansion of UNSC and Indian Candidature: Sri Lanka supports the basic premises of our policy on this issue - need to make UNSC more transparent and democratic, representation from developing countries and objective criteria to undertake comprehensive reforms.

Indo-Pak relations:Sri Lanka has supported a peaceful and negotiated settlement of outstanding issues between India and Pakistan through the bilateral framework. Despite being approached by Pakistan to play a mediatory role, Sri Lanka has taken care in not offending Indian sensitivities.

India’s Nuclear Tests: The official reaction of the Sri Lankan Government as well as reactions in the Media reflected an understanding of India’s security concerns. Although, the official statement expressed concern at the missile and nuclear testings in the region, the Sri Lankan Foreign Minister in a Press conference said that Sri Lanka had no objections to India being a nuclear weapon state. He also criticised the sanctions imposed by certain countries on India. Although, Sri Lanka is a signatory to the NPT and CTBT, it has expressed itself on several occasions against the discriminatory nature of the non-proliferation regimes and has called for total elimination of nuclear weapons.

Bilateral Trade Relations

The economic relations between the two countries have opened up only since the end of the Cold War. Sri Lanka was, as a matter of fact, the first South Asian economy to go for liberalisation way back in 1978. By the end of the Cold War, trade began to increase with India as India liberalised its economy. Sri Lanka also perceives India as a potential for FDI.

At present, Sri Lanka is India’s major trading partner in the South Asian Association for Regional Cooperation (SAARC) region. Total trade between both the countries has now crossed 5 billion US$. Deeper economic engagement with Sri Lanka (including free trade agreement) has helped Indiato more than double its exports within a two year span.

India and Sri Lanka signed the FTA in 1998, which finally became operational in 2001. The India–Sri Lanka FTA gives duty free preferential access to each other’s goods in a time-bound manner. India exports petro products, pharmaceuticals, two wheelers and vegetables while importing rubber products, spices and electric wires. Indian firms operational in Sri Lanka include Tata, Jet Airways, Ashoka Leyland, Ceat, Apollo,

and so forth.

In 2003, a joint working group was established for a comprehensive economic partnership agreement (CEPA). This was done to enhance the FTA and envisage

the promotion of cooperation in the service sector. India is also undertaking development of the Trincomalee port as this will boost its strategic presence vis-à-vis Sri Lanka. Indian Oil Corporation (IOC) is planning that a six million tonne per annum Grandfield refinery be established in Sri Lanka through direct investment. At present, Sri Lanka has only one 2.5 million tonne refinery.

India- Sri Lanka CEPA

India envisages services-based cooperation in CEPA. However, Sri Lanka has had expressed some reservations, it hopes for more economic and technical cooperation rather than increased movement of Indian professionals in Sri Lanka as expressed in the CEPA.

Sri Lanka favours an Economic and Technical Cooperation Agreement(ETCA) over the CEPA. In the CEPA, India had decided to open up 80 sectors for Sri

Lanka and advised that Sri Lanka open up IT and marine ship building sectors. Asthe proposed CEPA would liberalise investment and trade in services, goods and

facilitate movement of people, Sri Lanka feared that Indian firms may ultimatelycome to dominate the Lankan economic space and might eventually lead to loss ofjobs for the Sri Lankan native population

Recent Developments

India’s stand in UNSC

The UNHRC a US sponsored resolution on human rights violation in Sri Lanka with 25 countries including India voting in favour of the document in the 47 nation strong body. In 2012 after India voted against Sri Lanka in UNHRC, the island nation increased duties on vehicle imports. Three times- 2009, 2012 and 2013 - India voted in favour of the resolutions.

In May 2014, India abstained against resolution for international probe against alleged war crimes in Sri Lanka. India while making its stand clear in the matter cited that the resolution would rather hinder efforts than contribute constructively. In an explanation of vote given by Permanent Representative of India to the UN Offices here, Dilip Sinha, said this resolution at the UNHRC imposes an "intrusive approach" of international investigative mechanism which was counterproductive apart from being "inconsistent and impractical".

Issue of 13th Amendment

The 13th constitutional amendment was directly result of Indo-Sri Lanka Accord. The Indo-Sri Lanka Accord was international agreement between India and Sri Lanka under the International law. The Treaty Acknowledges that Sri Lanka is a multiethnic and multilingual plural society. Some provisions:
1. Merger of North and East provinces of Sri Lanka
2. Provides for provincial council with legislative power and executive council with executive power

3. Devolve power including on land and police
Under the agreement, The Sri Lanka is devolving power to provinces including north and east provinces dominated by Tamils. The Sri Lanka government is committed to implement provision in letter and spirit.

The Indian Government has dismayed by report suggesting that the Sri Lanka government is going to dilute provision of 13th amendment. The Sri Lanka revealed agenda to restrict autonomous power of North east province

India opposes diluting 13th amendment

1.    Strong cultural, Social and linguistic bound between Sri Lankan Tamils and Tamils of South India. India’s long standing interest and concern for the well being and protection of the right of Sri Lankan Tamils

2.    Dilution means Breach SriLankaninternational treaty obligation

3.    Increase Tension in Sri Lanka-Hurt progress and development to boundary regions India.

Decisive response now to oppose any dilution of 13th amendment is both morally necessary and politically imperative. India’s principle stand on this issue will reinforce its international reputation as global power and the largest democratic in the world

Katchatheevu Island Dispute

Before 1974 both side had claimed sovereignty over this island. The island was part of the Tamil Nadu. India handed over the possession of island to Sri Lanka in 1976.  In 2013 Tamil Nadu political parties has asked the centre govt. for retake possession of island as part of India territory. Tamil Nadu has invoked claim after the fisherman of TN are harassed bySri Lankan Fisherman.
As per Indian constitution, ceding of Indian Territory requires constitutional amendment by parliament. Thus, Alienation of any part of the territory of Tamil Nadu requires an amendment of the first schedule to constitution.

Both sides have entered into treaties but India has not given effect to ceding of Indian Territory to Sri Lanka through constitutional amendment. The petition has filed in Supreme Court argued same position. Now theSupreme Court can order the govt. to retake possession Indian Territory from Sri Lanka. But the ruling of SC will not have binding effect on Sri Lanka as Sri Lanka is sovereign state. Another important reason is that any such order will amount to the judiciary dictating foreign policy and should be avoided. On international front as well, under Vienna Convention on law of Ratification India’s stand is weakened as a State cannot invoke domestic law to avoid treaty obligation.

Indian Fishermen Issue

In August 2013, India had summoned Sri Lankan High Commissioner and issued a demarche on the issue of 114 fisherman lodged in Lankan jails. It was pointed out that delay in release of the fisherman not only deprives them of their livelihood but also creates anxiety among their family members. Even news of harsh treatment on the fisherman has also been heard.

Close cooperation between China and Sri Lanka

China has been investing heavily in Sri Lanka, with loans and expertise instrumental in building ports, highways, railways, and power plants in the Indian Ocean nation.

It is estimated that China is Sri Lanka’s biggest source of foreign funding. China provided critical defence equipment during the Sri Lanka’s action against the LTTE. China’s is providing assistance in the construction of the Hambantota port and the associated complex. Although China and Sri Lanka claim that it is basically a commercial venture, its future utility as a military asset cannot be ruled out.

China’s economic inroads into Sri Lanka have spurred India’s engagement to be more proactive, thoughtful and imaginative. India and Sri Lanka have agreed to promote dialogue on security and defence issues and step up high level military exchanges and training. India has also agreed to assist in rebuilding the Palaly Airport and the Kankesanthurai Harbour. These proposals clearly reflect India’s eagerness to retrieve some of the ground lost to China.

Recent initiatives

• The Indian PM Narendra Modi undertook the first standalone visit to Sri Lanka since 1987. The PM visited the Muhabadi society and interacted with Buddhist monks. He addressed the business community and focused on investment in infrastructure, energy, manufacturing and tourism.
• He visited Anuradhapura and Jaffna and handed over homes at Ilavali North West housing project to people. He flagged off Talaimannar–Madhu road train—a reconstruction of the Northern Province railway line. Economic ties saw resurgence. India proposed that Trincomalee be established as a petro hub and NTPC commence work on a 500 MW coal power plant.
• A joint task force on ocean economy was planned.
• India Sri Lanka also concluded an agreement on civilian nuclear cooperation and agreed to adopt a humanitarian approach to the fishermen’s issue and expand defence cooperation in trilateral format with Maldives.
• In May 2017, the Indian PM again visited Sri Lanka as a chief guest for the first ever International Vesak Day celebrations in Colombo. Vesak is sacred for Buddhists and Sri Lanka has consistently worked hard at the UN level to get Vesak Day accepted there.
• In April, 2017, the Sri Lankan PM, Ranil Wickremesinghe visited India. This was his third visit to India since 2015. During the visit, the two sides concluded MoUs on economic and developmental projects. The two sides have identified three sectors of long-term economic collaborations in energy, infrastructure and special economic zones.
• During the visit, India had decided to create infrastructure and develop the oil storage facility near Trincomalee which had never been developed and had been lying idle since World War–II. In order to keep China in check, India has focussed its energies upon delivering results in Trincomalee.
• As India has decided to pledge a fund of 2.6 billion dollars for development of Sri Lanka, it should use the potential to generate livelihoods in the Northern region where growth is possible in agriculture and fishing.

Conclusion

• Though our policy has always been to perceive Sri Lanka though the Chinese lens, India, has now, under itNeighbourhood First policy, is trying to look at Sri Lanka as an equal partner and this is likely to strengthen the relationship ahead.
• The analysis of recent India and Sri Lanka relations clearly proves that since 1987 the two sides have less political and more of economic cum security engagement. India has signed the Economic and Technical Cooperation Agreement (ETCA) for cooperation in services, investment and technology dimensions, The ETCA will provide Indian states in south India access to Sri Lankan markets.