The recent two-day visit to Sri Lanka by India’s Vice-President (VP) C. Radhakrishnan (April 19-20) has helped strengthen relations with an important neighbour. It reciprocated the earlier two high-level visits from Sri Lanka: President Anura Kumara Dissanayake in December 2024 and Prime Minister Dr Harini Amarasuriya in October 2025. The tradition of political-level exchanges and engagement continues with Sri Lanka, which enjoys a principal place in India’s Neighbourhood First Policy (NFP) and its vision of MAHASAGAR (‘Mutual And Holistic Advancement for Security and Growth Across Regions’).
In this context, Prime Minister Narendra Modi visited Sri Lanka thrice in the previous decade (in 2014, 2015, and 2019), and he paid a state visit to Sri Lanka in April 2025. Arranging the first-ever visit by the Indian VP, who belongs to Tamil Nadu and carries the same surname as that of the distinguished first incumbent of the high office – S. Radhakrishnan – therefore signified an innovative and major step. The VP was accompanied by a minister of state and Vikram Misri, foreign secretary, who also served in the Mission in Colombo.
This bilateral has been carefully nurtured by S. Jaishankar, the external affairs minister, through his periodic visits. For him, Sri Lanka is special, as he served in the Indian High Commission in Colombo during his early years as a diplomat.
A close reading of developments in India-Sri Lanka relations, especially in view of the discussions held by the Indian VP with the President, the Prime Minister, and the Leader of the Opposition in Sri Lanka, has particular relevance. For, all are conscious of maintaining good, stable, and cooperative ties while being aware that the search for solutions to the legacy issues may continue without disturbing the status quo.
For example, the Tamil issue in Sri Lanka boils down to the demand by Tamils in the North and East for greater devolution of power from the central government. No lasting solution has been found so far. The new trend seen in recent years is for India to keep it low-key, hoping Sri Lanka will internally find a solution for it. The relative absence of political pressure from Tamil Nadu on the government in Delhi has made the latter’s task easy. Nevertheless, the VP heard the views of the Tamil leaders in Sri Lanka. According to Sri Lanka’s Tamil Guardian newspaper, demands for “a federal political solution, rather than limited devolution, emerged as a constant theme across engagements”.
The other legacy issue – illegal fishing by Indian fishermen in Sri Lankan waters – remains unresolved. The 1976 maritime boundary demarcation agreement created a reality about Kachatheevu that cannot be changed. Demarcation placed the uninhabited 285-acre island on the Sri Lankan side, but it does not prevent Indian fishermen from fishing in areas where they have done so for centuries. Political leaders and officials continue to jointly deliberate on the subject from time to time, and fishermen are apprehended and then released, depending on the exigencies of the situation. Accordingly, the VP expressed appreciation for the Sri Lankan government’s decision to release 47 Indian fishermen from its custody, and both sides agreed on the need for more frequent contacts through the joint working group.
A third status quo issue is the Economic and Technology Cooperation Agreement (ETCA). Even after 14 rounds of talks, it has not been finalised yet due to resistance from the Sri Lankan side. No indications are available as to when the dialogue will be finalised. Certainly, its chances of becoming a reality will be helped along by a greater interest and support from business and industry in both countries, which need to increase bilateral trade. India’s trade with Sri Lanka is $5.54 billion in FY 2023-24. As one of the largest sources of foreign direct investment (FDI) in Sri Lanka, India had cumulative investments of $2.25 billion as of 2023.
Apart from these issues, several discussions focused on India’s role as ‘a first responder’ and the broadening contours of development cooperation.
Colombo has often expressed its deep appreciation for India’s quick and generous assistance on at least three recent occasions: the $4 billion-package to manage the economic crisis of 2022; financial lifelines extended for Sri Lanka’s debt crisis; and the $450 million package for recovery from the havoc wreaked by Cyclone Ditwah of 2025.
Development cooperation has been a key pillar of the relationship, with the following features: overall assistance amounts to $7 billion, including concessional loans, payment deferrals, and swap agreements, while grants stand at almost $780 million. Grants have been utilised for people-orientated development projects across 25 districts of Sri Lanka, spanning sectors such as infrastructure, housing, health, livelihoods, and education. The largest grant-assisted project involves the construction of 60,000 houses in four phases. Of them, 50,000 houses have already been built.
Connectivity of various kinds forms an important part of bilateral interaction with Sri Lanka. In the past three years (2022-25), ferry services have been introduced between Tamil Nadu and Sri Lanka; flights have begun between Chennai and Jaffna; and digital connectivity has been established through the launch of UPI QR-based payments in Sri Lanka.
Energy connectivity, a hot topic, was discussed, like the “Economic Land Corridor for developing land access to Trincomalee and Colombo, multi-product pipeline connecting India and Sri Lanka, and the power grid interconnection”. Various facets of ‘the energy hub’ were discussed during the VP’s visit. Foreign Secretary Misri observed that it was “a subject of fairly detailed conversation”, with India stressing the long-term strategic benefits for both sides. Making this a reality will be slower, given the complexity of the project and requirement of significant financial outlays.
Naturally, cooperation on a host of Indian Ocean-related issues was also discussed. Both countries are working in tandem to strengthen the Colombo Security Conclave (CSC) and its institutional underpinnings. This dialogue forum, with its secretariat based in Colombo, will soon be given the status of an international organisation, once the headquarters agreement is signed. Its first secretary general is likely to be an Indian national. The CSC has six members: India, Sri Lanka, the Maldives, Mauritius, Bangladesh, and Seychelles. Malaysia participated as a guest country for the first time during the 7th NSA-level meeting in November 2025.
The VP’s announcement of the relaxation of provisions to grant OCI cards to the fifth and sixth generations of Indian-origin Tamils in Sri Lanka has been widely welcomed. Such gestures reinforce the hope that the people-to-people ties will reach new heights and that the shift from grant-based to investment-driven partnerships may gain momentum in due course. The Vice President’s urging of Sri Lanka “to grow and grow together” in a joint journey towards inclusive development seems to have gone down well.
Rajiv Bhatia is the Distinguished Fellow for Foreign Policy Studies and a former ambassador.
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