By Girish Linganna
Sri Lankan President Anura Kumara Dissanayake’s recent trip (15-17th Dec 2024) to India is an important moment in strengthening the ties between the two neighbouring countries. This visit highlights the growing bond and cooperation between India and Sri Lanka. This was his first official trip abroad since becoming President in September, showing his dedication to strengthening economic relations with India while also tackling worries about China’s growing role in Sri Lanka.
In his meeting with Prime Minister Narendra Modi, Dissanayake thanked India for helping stabilize Sri Lanka’s economy during its 2022 crisis. He also shared his vision for working together on economic growth, focusing on sustainable development and recovery.
The visit ended with a joint statement that highlighted various plans for working together, including partnerships in energy and efforts to strengthen regional security. India’s plan to provide liquefied natural gas (LNG) to Sri Lanka and work on renewable energy projects shows its continued support in helping Sri Lanka expand its energy options.
One key announcement was the plan to build an energy pipeline linking India and Sri Lanka, with support from the United Arab Emirates. This pipeline, along with plans to develop Trincomalee (a port city in Sri Lanka) into a regional energy hub, shows India’s aim to strengthen its presence in the Indian Ocean while helping Sri Lanka meet its urgent energy needs.
Both countries also stressed the need to restart the passenger ferry service and repair important infrastructure, like the Kankesanthurai port (located in northern Sri Lanka, about 60 km from India), to improve connectivity between the two nations. India’s ongoing efforts to support housing, transportation, and digital infrastructure in Sri Lanka reflect its “Neighbourhood First” policy and its SAGAR (Security and Growth for All in the Region) initiative.
The agreements and announcements bring hope for the economic recovery of Sri Lanka and stronger ties between the two nations. However, there are concerns about how they might affect Sri Lanka’s independence and control over its economy in the long run.
Criticism has emerged within Sri Lanka, particularly from the Frontline Socialist Party (FSP), a group that broke away from the Janatha Vimukthi Peramuna (JVP). The FSP now plays a significant role in the ruling National People’s Power (NPP) coalition. Under the leadership of President Anura Kumara Dissanayake, the NPP has brought a fresh direction to Sri Lanka’s political landscape.
The rise of the JVP and its coalition, the NPP, marks a major shift in the country’s governance. However, the FSP has raised concerns about certain agreements, arguing that they could favour India while negatively impacting Sri Lanka’s local workforce, resources, and sovereignty. These criticisms could slow down the progress of the Dissanayake administration.
This is notable since his party had frequently criticized former President Ranil Wickremesinghe for his agreements with India. The FSP has expressed concern about plans to turn Trincomalee into an Indian economic hub, warning that this could force over 7,000 families to leave their homes.
There are growing concerns about large areas of land being given to foreign projects and the possibility of India getting rights to explore resources in places like Mannar (known for its oil and gas reserves) and Kuchchaveli (famous for its beaches and tourism). People fear this could lead to Sri Lanka’s natural resources being used in ways that do not benefit its citizens.
Another major worry comes from the revival of the Economic and Technology Cooperation Agreement (ETCA), which Dissanayake had strongly opposed in the past. The FSP has claimed that ETCA’s rules for opening up trade in services could allow many Indian professionals into Sri Lanka’s job market, possibly taking away opportunities from local workers.
With India’s large workforce, especially in fields like medicine where many local doctors are already unemployed, Sri Lanka may end up struggling to safeguard jobs for its skilled workers. The FSP warned that this could impact not only skilled professionals but also small workers in sectors like transportation, barbering, and street vending. They fear that cheaper labor from India could flood the market and hurt local jobs.
The energy sector, a major focus of the visit, has also faced criticism. While India’s role in LNG supply, offshore wind power, and connecting power grids could help solve Sri Lanka’s immediate energy problems, some worry that these partnerships might make Sri Lanka too dependent on India’s energy systems.
The FSP pointed out Bangladesh’s experience with India, where energy deals gave major control to Indian companies like the Adani Group, limiting Bangladesh’s control over its own energy resources. Similar concerns are being raised in Sri Lanka, especially since energy agreements often lack clear details about their long-term costs and benefits.
These criticisms are also linked to larger geopolitical issues. Wasantha Mudalige from the FSP mentioned India’s long-term goal of regional dominance, referring to the idea of “Akhand Bharat,” which envisions a unified South Asia under India’s influence.
Mudalige explained that India’s growing economic and strategic involvement in Sri Lanka might weaken the country’s political independence. He warned that Sri Lanka could end up becoming heavily influenced by India, losing control over its own decisions and functioning more like a dependent state.
These feelings show the strong concerns within Sri Lankan society about protecting the country’s independence while working with foreign partners. Despite these worries, President Dissanayake’s visit shows a practical effort to rebuild Sri Lanka’s economy after the severe crisis of 2022.
India’s financial help, including $4 billion in aid for food, fuel, and medicines, was vital in helping Sri Lanka stabilize its economy during its toughest time. The agreements made during Dissanayake’s first visit to New Delhi as President aims to strengthen this support by promoting investment partnerships, improving transport links, and boosting trade.
India’s proposal to promote trade settlements using the Indian Rupee (INR) and Sri Lankan Rupee (LKR) could help ease the pressure on Sri Lanka’s foreign exchange reserves. Additionally, plans to train 1,500 civil servants over the next five years aim to improve local governance, according to The Diplomat.
President Dissanayake’s government faces the challenge of balancing the advantages of these initiatives with the risks they bring with them. Critics believe Sri Lanka should carefully manage these partnerships to make sure they truly benefit its people and meet their needs.
Working with India can bring economic benefits, but it is important to focus on transparency, fair resource sharing, and safeguarding local industries. Dissanayake’s leadership will be tested as he works to use these agreements to support recovery while protecting Sri Lanka’s independence and the livelihoods of its people.
The visit to India has opened the door to a new phase in relations between the two countries. However, its success will depend on how the agreements are carried out and whether they genuinely help the people of Sri Lanka. As Sri Lanka works to recover, Dissanayake’s government needs to find the right balance—using India’s support while protecting the country’s independence, economy, and long-term stability. (IPA Service)
Follow our WhatsApp channel
