A spirit of accommodation marked the talks between Sri Lankan President Dissanayake and Indian Prime Minister Modi, with some ticklish issues put on the back burner by mutual consent
Sri Lankan President Anura Kumara Dissanayake's three-day State Visit to India from December 15 to 17 was a success from the Sri Lankan as well as the Indian point of view. At the bilateral talks held on Monday in the stately British-era mansion, Hyderabad House, in New Delhi, both sides candidly stated their interests and concerns, but at the same time, agreed to work around the ticklish ones in order to put the relationship on a mutually beneficial and durable footing.
President Dissanayake and Indian Prime Minister Narendra Modi had clearly struck a chord and that appeared to emerge from the fact that both came from the same political stock. Both had risen to the top from the grassroots level, honing their ideas and political skills during a long drawn out and arduous journey. Mutual empathy was evident and was reflected in the joint communique issued at the end of the talks.
Both being nationalistic, Dissanayake and Modi put forward their countries' concerns and interests clearly while at the same time striving to find middle ground that will help sustain the relationship.
A few years back, such a scenario could not be imagined because the Janatha Vimukthi Peramuna (JVP), to which Dissanayake belongs, had built itself as an avowedly nationalistic force resolutely opposed to India's Sri Lanka policy since the 1980s seeing it as hegemonic.
But Dissanayale's ascendance to the leadership of the JVP and its metamorphosis as the core of a broad-based alliance named the National Peoples' Power (NPP), represented a radical departure from the past for the party.
In the guise of "NPP", JVP acquired a wider class and geographical constituency. This propelled the small NPP with only three MPs, to the pinnacle of power in Sri Lanka. It captured the Executive Presidency and then followed it up by winning a comfortable majority in the parliamentary elections.
These feats made New Delhi sit up and take notice. The moment, Dissanayake won the Presidential election against the predictions of conventional political pundits, Indian External Affairs Minister S.Jaishankar rushed to Colombo to congratulate Dissanayake and made irresistible offers to build friendship with the new kid on the block.
Dissanayake was most receptive, accepting most of Jaishankar's offers. He also assured Jaishankar that his government would not allow Sri Lanka to be a used against India's security. By saying so, he had addressed New Delhi's principal concern vis-à-vis Sri Lanka. India sees China's footprints in Sri Lanka as a threat to it and would want China to be neutralised here.
At the Delhi talks, Dissanayake told Modi that he deeply appreciated the unwavering support given by India during and after the unprecedented economic crisis in 2022. He added that he looked forward to India's continued support. Prime Minister Modi, in turn, assured him of India's full commitment in this regard. The two leaders went further and affirmed their commitment to take the relationship to a "mutually beneficial comprehensive partnership".
An interesting new input in the joint communique was the call for "increased political interactions" and the intensification of "political engagements at the both the leadership and ministerial levels." Seen against the Indian failure to foresee and forestall the recent catastrophic events in friendly Bangladesh, the pledge to have and intensify political dialogues with Sri Lankan politicos makes sense. To quote the joint communique: "The two leaders underscored the importance of regular parliamentary level exchanges to promote democratic values."
Economic Assistance
Dissanayake appreciated India's continued support for the implementation of projects despite the ongoing debt restructuring. He acknowledged India's decision to extend grant assistance for projects that were originally undertaken through Lines of Credit, thereby reducing the debt burden of Sri Lanka.
The Sri Lankan President thanked Modi for India's support in stabilizing the Sri Lankan economy through "unparalleled and multi-pronged assistance including emergency financing and forex support worth USD 4 billion." He acknowledged India's crucial assistance in Sri Lanka's debt restructuring process, especially as co-chair of the Official Creditors' Committee (OCC).
He thanked India for extending financial assistance of US$ 20.66 million to settle payments due from Sri Lanka for projects completed under existing Lines of Credit, thereby significantly reducing the debt burden at a critical time.
Investment-led Growth
Importantly, the two leaders agreed that a strategic shift from debt-driven models towards investment-led partnerships across different sectors would ensure a more sustainable path to economic recovery.
They took note of the success of the India-Sri Lanka Free Trade Agreement (ISFTA) that had enhanced the trade partnership between the two countries and called for an expansion of trade ties. Both agreed that it was time to start discussions on the Economic & Technological Cooperation Agreement. (ETCA). Previous Sri Lankan governments had rejected ETCA fearing Indian domination. It was also agreed to take forward Indian-Rupee-Sri Lanka Rupee trade and encourage Indian investments in key sectors in Sri Lanka to enhance exports.
Connectivity
Connectivity is the new buzz word in India, perhaps motivated by China's successes in using connectivity projects in other countries to develop its geopolitical outreach. But the argument put forward by India to push connectivity was that it would help harness the complementarities between the two economies for mutual economic development. In this connection the two sides agreed to jointly work on the rehabilitation of the Kankesanthurai port in north Sri Lanka, to be implemented with an Indian grant.
Energy
India stresses a lot on energy production and trans-national energy connectivity for ensuring energy security. Dissanayake and Modi called for the implementation and expansion of the solar power project in Sampur in Trincomalee district; the supply of LNG from India to Sri Lanka; the establishment of a high-capacity power grid interconnection between India and Sri Lanka; and cooperation between India, Sri Lanka and the UAE to build a pipeline from India to Sri Lanka. The UAE might supply expertise and/or finance, said Indian Foreign Secretary Vikram Misri.
The two leaders agreed to the joint development of offshore wind power projects in the Palk Straits in north Sri Lanka, "while prioritizing environmental protection including fauna and flora."
Environmental protection, agreed to by India, is an important concession to Sri Lanka because the Dissanayake government had wanted the Gautam Adani-run wind power project to be reviewed citing differences over the pricing of power and also environmental concerns.
The two leaders decided to support the development of Trincomalee as a "regional energy and industrial hub."But this is an old plan which does not seem to see the light of day.
People-Centric Digitization
Modi's India has been an ardent proponent of people-centric digitization, which has helped improve governance, transform service delivery, ushered transparency, and contributed to social welfare. President Dissanayake conveyed his government's interest in exploring the establishment of similar systems in Sri Lanka with Indian assistance.
India also offered to help the Information Communication Technology Agency of Sri Lanka (ICTA), with mentorship for Sri Lankan start-ups.
Agriculture
Noting President Dissanayake's emphasis on agricultural modernization, the two leaders agreed to establish a Joint Working Group to examine possibilities for a comprehensive development of the agricultural sector in Sri Lanka. Both leaders appreciated the ongoing collaboration in the development of the dairy sector in Sri Lanka to ensure nutritional security.
Strategic and Defence Cooperation
Recognizing shared security interests, both leaders acknowledged the importance of a regular dialogue "based on mutual trust and transparency and giving primacy to each other's security concerns." This will assuage the feelings of those Sri Lankans who are apprehensive about the military asymmetry between Sri Lanka and India.
Assuaging India's fears, President Dissanayake reiterated Sri Lanka's stated position of not permitting its territory to be used in any manner inimical to the security of India as well as towards regional stability.
Defence Agreement
Importantly, both leaders decided to "explore the possibility of concluding a framework Agreement on Defence Cooperation and foster cooperation in hydrography.
Defence cooperation with India is welcomed in Sri Lanka in so far as training slots and gift of weapons and joint exercises are concerned. But a defence treaty with mutual obligations may be far-fetched given the fact that India and Sri Lanka do not have the same enemies.
The Indian side had been raising the issue of visits by Chinese "research" vessels to Sri Lankan harbours to do hydrograhic research. To the Indians these are "spy" vessels in disguise. In response to India's concerns, Sri Lanka had put an year-long moratorium on visits by research vessels from any country. But India wanted only Chinese vessels to be barred.
Foreign Secretary Vikram Misri said that India raised this issue at the talks and the Sri Lankan side explained that they had some issues to be addressed, and the two sides agreed to continue discussions on the question. Misri's statement indicated that India was mollified and quite pleased with Dissanayake's categorical assurance that Sri Lanka will not allow itself to be used to harm the security of India.