Prime Minister Narendra Modi started his first official trip to Sri Lanka in his third term on Saturday. He received a ceremonial guard of honour, marking the beginning of an important visit focused on strengthening bilateral ties.
India and Sri Lanka Sign Seven MoUs
During the visit, India and Sri Lanka signed seven Memorandums of Understanding. These include agreements in defence, energy, digital technology, healthcare, and trade. The deals come amid growing concerns over China’s expanding presence in the Indian Ocean region.
India Expands Economic Support
PM Modi continued India’s commitment to help Sri Lanka recover from the 2022 economic crisis. After offering $4 million earlier, India now plans to support further debt restructuring and reduce interest rates on existing loans. “In the last 6 months, we have converted loans of over 100 million into grants… Today, we have also decided to lower the interest rates,” said PM Modi. “It shows that even today, India stands with the people of Sri Lanka.” He also announced funding of 2.4 billion Lankan Rupees for the development of Sri Lanka’s Eastern Province.
Launch of Solar Power Project
India’s NTPC and Sri Lanka’s Ceylon Electricity Board signed a joint venture for a 120-megawatt solar power plant in Trincomalee. This project will help meet the island nation’s growing energy needs through clean energy.
Modi Becomes First Foreign Leader to Visit New President
This is PM Modi’s first visit since Anura Kumara Dissanayake became President in 2024. Modi is also the first foreign leader to visit Sri Lanka since Dissanayake took office. This visit follows the Sri Lankan President’s trip to India last December, which was his first state visit.
Modi Raises Fishermen and Katchatheevu Issue
PM Modi’s visit comes shortly after the Tamil Nadu Assembly passed a resolution to retrieve Katchatheevu island from Sri Lanka. The issue remains sensitive for Indian fishermen who face frequent arrests. Modi said he had raised this concern during his meetings. “We also discussed issues concerning the livelihoods of fishermen… Emphasis was laid on the immediate release of the fishermen and the return of their boats,” he said. He confirmed that Sri Lanka agreed to release the detained fishermen and return their boats promptly.
Digital and Defence Ties Get a Boost
India’s Ministry of Electronics and Information Technology signed an agreement with Sri Lanka’s Digital Economy Ministry to share India’s digital expertise. In defence, the two countries signed an agreement that allows joint maritime surveillance, military training, and equipment support. This marks a significant development, especially since India withdrew its Peacekeeping Mission from Sri Lanka more than 30 years ago.
Full Day of Talks and Ceremonial Events
PM Modi held closed-door talks with his Sri Lankan counterpart after the official welcome. Delegation-level talks followed, after which the leaders announced joint projects. Modi will also virtually inaugurate several development initiatives with President Dissanayake. In the afternoon, Modi is scheduled to lay a wreath at the Indian Peace Keeping Force memorial. Later in the evening, he will attend a banquet hosted by the Sri Lankan President and meet dignitaries at the Taj Samudra Hotel.
Dissanayake Thanks India for Crucial Support
During his visit to India last year, President Dissanayake thanked New Delhi for its strong and timely help during Sri Lanka’s worst financial crisis. He specifically referred to India’s role in helping Sri Lanka secure a $2.9 billion IMF bailout package. He said India had played a “positive and impactful” role in supporting Sri Lanka’s development needs.
Sri Lanka Reassures India on Security
President Dissanayake also assured that Sri Lanka would not allow its territory to be used in any way that threatens India’s security. He emphasized his government’s commitment to regional peace and stability. India welcomed this assurance, as Sri Lanka holds a key position in the Indian Ocean’s strategic landscape.
