“India has extended financial assistance exceeding $ 7 billion”

Indian High Commissioner to Sri Lanka Santosh Jha is a seasoned diplomat with experience in several key postings. In this interview, he discusses the significance of PM Narendra Modi’s visit to Sri Lanka and the opportunities and challenges in the India-Sri Lanka partnership. He highlights the importance of fostering a business-friendly, stable investment climate to attract Indian investment and notes that the visit is expected to deliver key outcomes that will elevate the partnership to new heights.

Q: Given the current regional challenges, what is the trajectory of India-Sri Lanka relations?

India-Sri Lanka relations have never been stronger. Rooted in shared aspirations for prosperity, development, and security, our partnership is expanding into new and diverse areas. Sri Lanka remains an integral part of India’s Neighborhood-First Policy and the MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions) approach. As a reflection of this commitment, India extended an unconditional financial assistance package of over $ 4 billion—the largest ever deployed in support of any country. With Sri Lanka now on the path to economic recovery, it has a great opportunity to integrate with India’s fast-growing economy, which has doubled in size from $ 2.1 trillion in 2015 to $ 4.3 trillion in 2025. As the fifth-largest economy, soon to be the third-largest, India remains a key partner in Sri Lanka’s resurgence.

Q: India’s support for Sri Lanka’s economic stabilisation is now widely acknowledged by the public. What Sri Lanka needs now is growth. Could you share insights on the next phase of economic support?

India is Sri Lanka’s largest trade partner, a leading investor, and the biggest source of tourism revenue. The India-Sri Lanka Free Trade Agreement (FTA) has significantly benefited Sri Lanka, with 65% of Sri Lanka’s exports utilising FTA benefits compared to just 5% for India. Sri Lanka has also maintained a trade surplus in FTA-covered goods. However, both nations recognise the need to upgrade the FTA by removing existing impediments, eliminating non-tariff barriers, and enabling greater trade facilitation. India’s development partnership in Sri Lanka includes railway modernisation and port upgrades such as the Kankesanthurai Port, infrastructure projects like housing, schools, and hospitals, renewable energy initiatives such as solar electrification of religious places and hybrid energy projects in Jaffna, and support for agriculture, fisheries, and cold storage facilities. To date, India has extended financial assistance exceeding $ 7 billion, including $ 800 million in grant aid and the conversion of $ 100 million in loans into grants. These projects span all 25 districts in Sri Lanka.

Q: How can India and Sri Lanka further strengthen business and investment flows?

India is already a leading foreign investor in Sri Lanka, and this trend is expected to grow. Major Indian investments include the West Container Terminal at Colombo Port, the ITC Hotel, renewable energy projects, and CEAT’s $ 225 million acquisition of two Michelin plants. Bilateral infrastructure and energy projects are investment-driven, and India continues to encourage private sector investments. A business delegation from the Confederation of Indian Industry (CII) is expected later this year. During President Disanayake’s visit to India in December 2024, he engaged with Indian industry leaders, reinforcing the importance of Sri Lanka’s proximity to India’s economic growth. To capitalise on this, Sri Lanka must ensure a business-friendly, stable investment climate.

Q: Another critical area of concern is maritime security and regional challenges. How are India and Sri Lanka addressing these issues?

Both nations have reaffirmed their shared maritime security interests in the Indian Ocean Region and are committed to strengthening regional security through the Colombo Security Conclave, BIMSTEC, and IORA. This includes joint training, military exercises, and defence collaboration such as the deployment of a Dornier aircraft for maritime surveillance and the establishment of a Maritime Rescue and Coordination Centre in Sri Lanka. Sri Lanka has also made it clear that it will not allow its territory to be used in ways that threaten India’s security or regional stability.

Q: What steps are being taken to strengthen cultural and educational ties between India and Sri Lanka?

The people-to-people ties between India and Sri Lanka span millennia. Recent initiatives to strengthen cultural and educational connections include recognising Pali as a classical language in India, with Sri Lanka being the first to welcome the announcement, translating Jataka Tales into Sinhala and reprinting the Namamala Pali grammar book, and promoting Buddhist circuits and the Ramayana trail, which attract visitors from both countries. Education and youth engagement remain key priorities, with nearly 800 scholarships awarded annually to Sri Lankan students, including 200 new scholarships for students of Jaffna and Eastern Universities, along with expanded skills training and development opportunities for Sri Lankans in Indian institutions.

Q: How do you see the future of the India-Sri Lanka partnership amid the influence of other global players?

The India-Sri Lanka partnership is built on people-centric cooperation, with future collaboration focusing on digital transformation and IT-enabled services, renewable energy and sustainable infrastructure, human resource and skill development, and trade and investment growth to strengthen both economies. These areas will define the partnership’s next decade, ensuring that both nations grow together and remain future-ready.

Q: Lastly, what is the broader significance of Indian PM Narendra Modi’s visit to Sri Lanka?

Indian PM Narendra Modi’s upcoming visit follows President Disanayake’s first official visit to India in December 2024. This visit holds special significance as PM Modi will be the first foreign leader to visit Sri Lanka under the new Government—underscoring the unique and strategic nature of bilateral relations. This will be PM Modi’s fourth visit to Sri Lanka in the last decade, reflecting India’s commitment to supporting Sri Lanka’s economic recovery, deepening cooperation on shared growth and development, and strengthening ties in areas such as investment, connectivity, digitisation, energy, security, and defence. The visit is expected to yield key outcomes that will elevate the India-Sri Lanka partnership to new heights.