Historical Ties
Financial Assistance from India
- provided USD 4 billion worth of aid to Sri Lanka during an unprecedented economic crisis,
Role in Debt Restructuring
- India has played a role in collaborating with IMF
- India became the first country to hand over its letter of support for financing
Joint Vision for Connectivity
- People to People connectivity, renewable energy cooperation, logistics
- port connectivity
- grid connectivity for electricity trade.
- Economic and Technology Cooperation Agreement(ETCA):
- Both countries are exploring the possibility of an ETCA to integrate their economies and foster development.
Agreement on a Multi-Project Petroleum Pipeline
- to establish a multi-product petroleum pipeline from the southern part of India to Sri Lanka.
- aims to ensure an affordable and reliable supply of energy resources to Sri Lanka.
Adoption of India’s UPI
- enhancing fintech connectivity between the two countries.
- use of rupee for trade settlement
Economic Ties
- India is Sri Lanka’s third largest export destination, after the US and UK.
- > 60% of Sri Lanka’s exports enjoy the benefits of the India-Sri Lanka Free Trade Agreement
- India as major investor in Sri Lanka.
Defence
- India and Sri Lanka conduct joint military- Mitra Shakti
- Naval exercise SLINEX
Participation in Groupings
Tourism
- In 2022 ➡️India as largest source of tourists with over 100,000 tourists.