Approach:

Introduction- Write in brief about India Sri Lanka’s relationship.

Body- Show close partnership between the two nations, mention issues, and mention recent challenges faced by Sri Lanka and India’s support to Sri Lanka in this regard.

Conclusion- Suggest a way forward for both nations to increase mutual trust and partnership

Answer:

Sri lanka occupies a central position in India’s Neighbourhood First Policy with both nations enjoying a legacy of intellectual, cultural, religious, and linguistic interactions such as the presence of Tamils on both sides of the border.

The close partnership between India and Sri Lanka:

• Economic partnership - Both countries signed a free trade agreement in 1998 with attempts towards its revival and upgrade going on since 2018-19.
  1. Scope for cooperation in infrastructure energy, industry health, etc. long-term energy solutions partnerships power grid connections need to be strengthened. The solar power plant at Sampur provides an example. The Trincomalee oil tank farm project is also being built with Indian assistance.
• Political and diplomatic cooperation with many lawmakers educated in India and sharing roots with us.
• Defense cooperation with a strong partnership with India providing military training and equipment. Joint exercises are also conducted for example Mitra Shakti exercise between the two armies.
• Cultural ties with rich heritage where Buddhism is a common thread. India has helped in the preservation of Sri Lankan heritage including the reconstruction of Anuradhapura.
  1. Revival of Buddhism as a soft power strategy in the last few years has also helped such as the Buddhist circuit in the Swadesh Darshan scheme to attract tourism.
• People-to-people ties with a large number of Sri Lankans of Indian origin and many Indian expatriates living in Lanka. There are regular exchange programs.
  1. Education is one means as India provides scholarships to Indian students and training programs for Lankan officials.

However, there have been issues in this partnership:

• Tamil issue with Tamils facing institutionalized discrimination since independence there. Tamil issue creates pressure on the Indian government to take actions in favour of Tamils impacting bilateral relations. It was visible at the time of insurgency also.
  1. The different stances on the 13th amendment as India want it to be implemented for political stability there but it has still not been passed.
• Rising Chinese influence such as in infrastructure creation confirms concerns of India of the development of a string of pearls among which Hambantota port plays a crucial role. Yuang Wang incident depicted fears of surveillance so close to our borders.
• The unstable security conditions such as the Liberation Tigers of Tamil Eelam ( LTTE) insurgency in past, and the easter bombings in 2019, cause security concerns for India. 
• Fisheries issues as Indian fishermen intrude into Sri Lankan waters and practice bottom trawling there. Disproportionate steps by Sri Lankan navy such as shooting fisherman, forfeiting their vessels, etc. also causes concern.

However above issues were put on the side burner when Sri Lanka needed India in their recent crisis. Current challenges faced by Srilanka:

• Impact of the covid pandemic affecting the tourism industry (10% of GDP) hitting foreign exchange reserves.
• Increase in the foreign exchange rate due to decline in forex and depreciation in Srilankan rupee making imports of essential items like food and fuel costlier. There were long queues being witnessed for fuel.
• The default of sovereign debt by Srilanka now affects the trust of creditors. Request for a bailout from International Monetary Fund will only be accepted once the bilateral creditors provide assurances to which India has agreed but China has declined.

Support extended by India:

• Economic aid of more than 3.5 billion dollars. For example, shipment of rice ahead of the new year celebration.
• Extension of credit facility such as of more than 1 billion in march 2022. Lines of credits to buy items like petroleum products.
• Aid for fertilizer such as giving nano nitrogen liquid fertilizers.
• Extension of currency swap of 400 million dollars to save from depleting forex reserves.
• Assurance by India for Bailout package by IMF and efforts to support Sri Lanka in IMF.

India has proved itself as a reliable partner for Sri Lanka. Thus, Sri Lanka should also cooperate with India regarding its security concerns in the Indian ocean. Both nations should ensure bilateral issues are resolved amicably with the development of greater trust to realize the huge potential of a robust partnership.