In a landmark development, India and Sri Lanka are set to sign an ambitious defence cooperation agreement during Prime Minister Narendra Modi’s visit to Colombo next week. This marks the first such pact between the two nations, nearly four decades after the withdrawal of the Indian Peace Keeping Force (IPKF) from Sri Lanka.
Alongside the defence agreement, the two countries are expected to finalize a currency swap framework and sign multiple deals, including one on debt restructuring, following talks between Modi and Sri Lankan President Anura Kumara Dissanayake on April 5, sources said.
Another key initiative under discussion is a trilateral arrangement involving India, Sri Lanka, and the United Arab Emirates to jointly develop the Trincomalee oil farms.
Modi is set to arrive in Sri Lanka on April 4 for a three-day visit after completing his trip to Thailand. This will be his first visit to Sri Lanka since 2019 and the first by a foreign leader since Dissanayake took office.
At a media briefing, Foreign Secretary Vikram Misri confirmed that an MoU on defence cooperation is being finalized, signaling a major step forward in bilateral security ties. While details of the agreement remain undisclosed, it is expected to bolster defence engagement against the backdrop of growing Chinese influence in the Indian Ocean region.
China’s increasing presence has been a point of concern for India, particularly following the docking of Chinese surveillance ships at Sri Lankan ports in recent years.
Modi’s visit will focus on strengthening economic ties, boosting investments, and enhancing connectivity across various sectors, including physical infrastructure, digital networks, and energy cooperation. The two leaders will also inaugurate several Indian-assisted projects in Sri Lanka, including the groundbreaking of the Sampur solar energy project.
A key issue on the agenda is the long-standing fishermen dispute between the two nations, with Modi expected to emphasize the need for a peaceful resolution through constructive dialogue.
On April 6, Modi and Dissanayake will visit Anuradhapura, where they will jointly inaugurate two Indian-supported projects and pay respects at the Mahabodhi Temple.
With Sri Lanka’s economy on a path to recovery following India’s $4.5 billion financial assistance during the 2022 crisis, the visit is seen as an opportunity to further strengthen the bilateral partnership.
