India, Sri Lanka sign 1st defence deal, six other pacts during PM Modi’s visit

NEW DELHI, APR 5 : Prime Minister Narendra Modi received a ceremonial guard of honour in Sri Lanka on Saturday as he kicked off his first visit to the island nation in his third term. Both countries have signed seven Memorandum of Understandings (MoUs) in defence, energy, digital infrastructure, health and trade sectors amid concerns over China’s expanding its influence across the Indian Ocean region.

PM Modi was also honoured with Sri Lanka’s highest civilian award, Mithra Vibhushana, for his exceptional efforts in bolstering the ties between the two nations and highlighting the spiritual and cultural heritage of both countries.

This is PM Modi’s first visit since Sri Lankan President Anura Kumara Dissanayake took charge last year – and the first by any foreign leader since Dissanayake began his term in 2024. It also comes after Dissanayake’s visit to India in December – his first state visit since assuming office.

PM Modi’s visit comes at a time when Tamil Nadu has passed a resolution to retrieve Katchatheevu from Sri Lanka – an emotive issue for fishermen in the state due to the long-standing dispute over fishing rights around the 285-acre island.

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Lauding the “resilience” of Sri Lankan people, PM Modi, with President Dissanayake by his side, said, “I am proud that Sri Lanka is on the path back to recovery…We have always stood by Sri Lanka – be it during Covid, or the terror attacks or the recent economic crisis.”

In a big announcement and relief to several fishermen from Tamil Nadu, PM Modi said that he had also raised their concerns and declared that Sri Lanka has agreed to the immediate release of any Indian fishermen and the prompt return of their boats.

“We also discussed issues concerning the livelihoods of fishermen. Both sides agreed on the need to adopt a humanitarian approach in dealing with this matter. Emphasis was laid on the immediate release of the fishermen and the return of their boats,” said PM Modi.

India’s Ministry of Electronics and Information Technology signed a deal with the Digital Economy Ministry in the field of sharing successful digital solutions implemented at a population scale for digital transformation.

India has also signed key deals in the defence sector that would mark a new chapter in India’s defence ties with its neighbour since the Indian Peacekeeping Mission was forced to withdraw more than three decades ago. With this agreement, New Delhi and Colombo would move strategically closer in terms of joint maritime surveillance, military exercises, and equipment support.

During this visit, PM Modi carried forward India’s initiative to help Sri Lanka rebuild after the 2022 economic crisis battered the island nation. After providing USD 4 million to bail Sri Lanka out of the crisis, India has expressed its willingness to continue to help the island nation with debt restructuring and lowering the interest rates on loans.

“In the last 6 months, we have converted loans of over 100 million into grants. Our bilateral debt restructuring agreement will be of immediate help to the people of Sri Lanka. Today, we have also decided to lower the interest rates. It shows that even today, India stands with the people of Sri Lanka. For the development of Eastern states, approximately 2.4 billion Lankan Rupees will be provided,” said PM Modi.

PM Modi also signed the joint venture between India’s National Thermal Power Corporation and Sri Lanka’s Ceylon Electricity Board for a 120-megawatt solar power plant in Trincomalee that will address the island nation’s growing energy needs.

PM Modi received a ceremonial welcome at around 9:10 am. Following the grand ceremony, PM Modi had a closed-door discussion with his Sri Lankan counterpart. Right now, delegation-level talks are underway, which will be followed by a joint press statement where the heads of both countries will announce key agreements that have been signed. PM Modi will also inaugurate several virtual projects along with Dissanayake.

PM Modi with his Sri Lankan counterpart Anura Kumara Dissanayake. (AFP)

In the evening, PM Modi will visit the Taj Samudra Hotel at the invitation of Sri Lankan dignitaries. PM Modi is also slated to visit the Indian Peace Keeping Force memorial in the afternoon and lay a wreath. Around 7.30 pm, President Dissanayake will host a banquet in honour of PM Modi.

PM Modi receives Guard of Honour

On his last visit, Sri Lanka’s new leftist President Anura Kumara Dissanayake, who took office after the Rajapaksas were ousted in a mass movement, thanked India for its “positive and impactful role” in providing development assistance to the island nation amid its crippling debt crisis. Dissanayake was referring to India’s help in securing a much-needed USD 2.9 billion IMF bailout during the 2022 economic crisis.

Since Sri Lanka’s strategic location in the Indian Ocean plays a crucial role in India’s maritime security, President Dissanayake’s assurance that it will not “permit its territory to be used in any manner inimical to the security of India… as well as towards regional stability” was seen as a welcome step by Delhi last year.

-AFP