Beach Mistrust, Raise Sails for a Fresh Bilateral

Prime Minister Narendra Modi's visit is also a clear statement of India's interest in deepening ties with Sri Lanka and not relinquishing its role as the South Asian superpower

- DILRUKSHI HANDUNNETTI

Indian Prime Minister Narendra Modi has just concluded his fourth visit to Sri Lanka, precisely two years after the Indian Ocean island went bankrupt and its economy collapsed like a pack of cards.

As the economic crisis unfolded in April 2022, the worst ever in post-independence Sri Lanka, Delhi stepped in quickly to assist Colombo with financial and humanitarian assistance. Promptly, it provided $4 billion in financial aid and, a year later, supported the $3 billion IMF bailout program for Sri Lanka.

Two years later, on April 5, the visiting leader announced the completion of debt restructuring with Sri Lanka at significantly low interest rates, emphasizing India's position as Colombo's ally. Sri Lanka owes nearly $1,400 million to both the Exim Bank of India and the State Bank of India. The timing of this announcement is noteworthy. Sri Lanka is again in a tail-spin and is bracing itself for another hit on its fragile economy following US President Donald Trump imposing a 44% tariff on Sri Lankan goods, making it one of the most impacted countries.

During the three-day visit, which concluded on Sunday, Modi and Sri Lankan President Anura Kumara Dissanayake signed several bilateral agreements on energy cooperation, health, digitization, and multi-sectoral assistance. They also virtually witnessed several joint projects launched, such as the controversial Sampur solar power plant, an agricultural warehouse in Dambulla, and the supply of solar rooftop systems for 5,000 religious institutions islandwide.