PM Modi in Sri Lanka: 10 Mega Deals Signed, Defence Pact Ends 35-Year Freeze

In a visit loaded with strategic significance, Prime Minister Narendra Modi is currently in Sri Lanka for a three-day official tour aimed at boosting bilateral relations across critical sectors including energy, defence, trade, digitalization, and connectivity. His talks with newly elected Sri Lankan President Anura Kumara Dissanayake are expected to culminate in the signing of 10 high-impact agreements, seven of which focus on defence cooperation.

Resetting Ties, Rebuilding Trust

This visit marks a reset in India-Sri Lanka ties, particularly in the defence sphere. The two nations are set to turn the page on the bitter legacy of the Indian Peace Keeping Force (IPKF), which withdrew from Sri Lanka 35 years ago. The new defence cooperation agreement is a milestone in rebuilding military and strategic trust between the two neighbors.

According to diplomatic sources, the agreements will institutionalize military ties through joint training, exercises, and hardware supply.

Energy Diplomacy in Focus

A major highlight will be energy collaboration, especially in the renewable sector. PM Modi and President Dissanayake will virtually inaugurate the Sampur Solar Power Project, a flagship initiative aimed at ensuring affordable energy supply to Sri Lanka.

Indian High Commissioner Santosh Jha confirmed that talks are progressing on jointly developing the Trincomalee Oil Tank Farms, a long-standing trilateral project involving India, Sri Lanka, and the UAE.

“Energy has been one of the strongest pillars of our partnership,” said Jha, underlining India’s commitment to regional energy security.

From Crisis to Cooperation

PM Modi’s visit comes at a time when Sri Lanka is emerging from a deep economic crisis that peaked in 2022. India had extended financial aid worth $4.5 billion, including credit lines and currency support, during the height of Colombo’s financial collapse.

Post-talks, documents outlining India’s assistance in debt restructuring and currency swap arrangements are expected to be released publicly.

Cultural Diplomacy & Symbolism

The two leaders will also visit the historic city of Anuradhapura, offering prayers at the sacred Mahabodhi Temple, underscoring the cultural and religious bonds between the two nations rooted in Buddhism and shared civilizational heritage.

Trade & Technology: ECTA in Sight

Former President Ranil Wickremesinghe, welcoming PM Modi’s visit, voiced optimism about the early conclusion of the Economic and Technology Cooperation Agreement (ECTA), which is likely to deepen trade and digital integration between the two nations.

“This is the moment to start implementing the connectivity projects we’ve been discussing,” said Wickremesinghe, emphasizing stronger post-crisis ties.


Strategic Takeaway

This high-level visit is being seen as a key diplomatic moment for both countries. For India, it’s an opportunity to counter growing Chinese influence in the Indian Ocean Region. For Sri Lanka, it’s a step toward sustained recovery, stability, and deeper integration with South Asia’s largest economy.

As PM Modi heads next to Thailand, this tour reflects New Delhi’s calibrated push to strengthen its “Neighbourhood First” and “SAGAR” (Security and Growth for All in the Region) doctrines.

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