Vineeta Rao
Auckland, April 2, 2025
India’s Prime Minister Narendra Modi will be traveling to Sri Lanka from April 4 to 6, 2025, after concluding the two-day Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) summit in Thailand.
This will be Mr Modi’s fourth visit to the island Nation, underscoring the deep ties and robust economic partnership between the two countries. He will be the first foreign Head of State to be hosted by President Dissanayake.
India and Sri Lanka share a rich legacy of close historical, economic and cultural ties.
India signed a Free Trade Agreement (FTA) with Sri Lanka in 1998.
Stated to the first for India, it came into effect in 2000.
However, a lot has changed for India since then and the Sub-Continent Nation has surged ahead economically. This visit will determine if Sri Lanka can capitalise on its close relationship with India bring in some much needed prosperity.
Four Key Agreements
Mr Modi is expected to finalise key agreements discussed during Mr Dissanayake’s visit to India in December 2024.
Among these agreements is the establishment of solar power plants in Sri Lanka, a joint venture between the Ceylon Electricity Board and India’s National Thermal Power Corporation (NTPC).
Located in Sampur, in the port district of Trincomalee, the project aims to generate 120 megawatts of solar power in two stages. This initiative reflects both countries’ commitment to sustainable energy and reducing carbon footprints.
Mr Modi will also attend the commencement of construction of the plant, after a delay of nearly 19 years. The project was first signed in 2006 as a 500 MW coal power plant but has been changed to LNG in 2016 and now to solar power plant as requested by Sri Lankan governments.
“This project has been in the works for some time. It has gone through an evolution as well, but it will be a major milestone in the bilateral partnership between the two countries,” Indian foreign secretary Vikram Misri told a media briefing in New Delhi.
India also has been playing a key role in energy supply in Sri Lanka through the Sri Lankan subsidiary of the Indian Oil Corporation, the Lanka IOC. The Sampur project is expected to further solidify energy cooperation between the two nations.
Trade and Investment
Modi’s visit is also set to boost trade and investment between India and Sri Lanka.
The two leaders will discuss measures to enhance bilateral trade, focusing on sectors such as textiles, pharmaceuticals, and information technology. It is to be hoped that the Indian PM’s visit will redress the existing trade imbalance between the two nations.
Sri Lanka will seize the opportunity to capitalise on India’s economic boom.
A new framework agreement on defence cooperation will also be a key area of focus during Modi’s visit. This will mark the first revitalisation of Indo-Lankan defence cooperation since the Indian Peace Keeping Force (IPKF) was deployed during Sri Lanka’s Civil War.
India and Sri Lanka have a shared interest in maintaining regional stability and security, particularly in the Indian Ocean region. The visit will include discussions on enhancing defence cooperation, including joint military exercises, training programs, and intelligence sharing
Digital and Health Initiatives
Mr Modi’s visit will also see the signing of Memoranda of Understanding (MoUs) on digitisation and health. These agreements will facilitate the exchange of technology and expertise, helping Sri Lanka improve its digital infrastructure and healthcare services
The collaboration in these areas is expected to bring significant benefits to the Sri Lankan population, enhancing access to digital services and improving healthcare outcomes.
Cultural exchange and people-to-people ties are integral to the India-Sri Lanka relationship. Mr Modi’s visit will include cultural events and interactions with the Indian diaspora in Sri Lanka.
Mr Modi’s visit comes at a time when regional dynamics are evolving, particularly with China’s growing influence in South Asia.
During his visit, Modi is expected to discuss regional security concerns with Sri Lankan leaders, emphasizing the importance of a stable and secure Indian Ocean region.
The visit aims to reassure Sri Lanka of India’s commitment to its security and development, countering any potential threats from external actors.
Mr Modi’s visit to Sri Lanka in April 2025 is of significant interest, not just to Sri Lanka but also to other potential allies in the region. It is to be hoped that this visit will mark a fresh start to the relationship between the two nations.
Vineeta Rao is an Indian Newsink Reporter based in Auckland.
