Prime Minister Narendra Modi is set to visit Sri Lanka from April 4 to 6, 2025, marking a significant step in strengthening the relationship between the two neighboring nations. This visit is expected to focus on two key areas: a new framework agreement on defence cooperation and measures to support Sri Lanka's economic recovery. These developments signal a renewed partnership, leaving behind the strained ties of the past.
A Historic Defence Agreement
The centrepiece of PM Modi’s visit will be the signing of a framework agreement on defence cooperation. This marks the first major refresh in defence ties between India and Sri Lanka since the Indian Peace Keeping Force (IPKF) intervention in the late 1980s. The IPKF’s involvement in Sri Lanka’s civil war had left a bitter legacy, causing a lull in defence collaboration for decades. However, recent years have seen a revival in security cooperation.
The new agreement is expected to expand joint military exercises, enhance maritime surveillance, and provide Sri Lanka with defence platforms and assets. This comes at a time when India is concerned about China’s growing influence in the Indian Ocean region, including its activities at Sri Lanka’s Hambantota Port. Strengthening defence ties will not only enhance security but also reinforce India’s role as a key partner for Sri Lanka.
Economic Recovery Measures
Another major focus of PM Modi’s visit will be economic collaboration to help Sri Lanka recover from its financial crisis. Key agreements are expected between the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) for debt restructuring and an extension of a currency swap arrangement. These measures aim to stabilize Sri Lanka's economy, which has been struggling with high debt and inflation.
Additionally, a tripartite agreement involving India, Sri Lanka, and the United Arab Emirates (UAE) is likely to be announced for developing the Trincomalee oil tank farm. This project holds strategic importance for energy security in the region.
Focus on Renewable Energy
The visit will also highlight renewable energy projects, such as the Sampur Solar Power Plant in Trincomalee. Originally planned as a coal-based plant, it has been restructured into a solar project with capacities of 50 MW and 70 MW. This shift reflects both nations’ commitment to sustainable energy solutions.
Strengthening Bilateral Relations
PM Modi’s visit follows Sri Lankan President Anura Kumara Dissanayake’s trip to India in December 2024, his first foreign visit after taking office. During that trip, both countries began drafting the framework for defence cooperation and discussed economic partnerships. Modi will be the first foreign leader hosted by President Dissanayake, underscoring the importance of India-Sri Lanka relations.
This visit also provides an opportunity to address other critical issues like Indian investments in Sri Lanka and ongoing development projects in Tamil-dominated regions in the Northern and Eastern provinces.
Why This Visit Matters
India’s efforts to deepen ties with Sri Lanka come against the backdrop of increasing geopolitical competition in South Asia. By strengthening defence and economic partnerships, India aims to counterbalance China’s influence while supporting its neighbor's stability and growth.
This renewed collaboration will not only benefit both nations but also contribute to peace and prosperity in the Indian Ocean region. PM Modi’s visit promises to be a turning point in India-Sri Lanka relations, paving the way for stronger ties across multiple sectors.
With inputs from agencies
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