In Sri Lankan crisis, window of economic opportunity

In a recent interview with an Indian TV channel, Sri Lankan Prime Minister Ranil Wickremesinghe touched on a less-emphasized but important aspect of India-Sri Lanka relations – the similarities between Sri Lanka and the southern parts of India. He even said that he would “easily fit into Chennai or Kerala without any problem, while[,] Similarly[,] People from the south can fit in here.” This was not the first time he spoke of forging closer ties between his country and South India.

sub-regional reference

During his second term as Prime Minister, Mr. Wickremesinghe, while delivering a lecture in Chennai in August 2003, called for the development of the South India-Sri Lanka sub-region as a single market that would contribute to the country’s economic development. will provide more opportunities. both countries. In 2016, while addressing the South Asian Diaspora Conference in Singapore, he highlighted the fact that the five Indian southern states with a total population of 250 million had a combined GDP of about $450 billion; In addition to Sri Lanka’s $80 billion GDP, the sub-region will have a $500 billion economy, with a total population of about 270 million. In a Southeast Asian country, he also mentioned three-nation economic convergence, which also included Singapore. Mr. Wickremesinghe’s latest remarks should be seen in the context of his idea of ​​sub-regional integration.

The current economic crisis in Sri Lanka has pushed it closer to India for immediate relief. For the past few months, the Indian media’s regular coverage of the crisis has led to a better understanding and even a sense of empathy in India about the plight of the neighboring country. India, as part of its ‘Neighbourhood First’ policy, has extended support to the people of Sri Lanka in the form of aid (around $3.5 billion) of essential commodities to help secure Sri Lanka’s food, health and energy security. by supplying. Food, medicines, fuel and kerosene.

aid from india

The latest in the series was the signing of an agreement on June 10 between the Sri Lankan government and the Export-Import Bank of India for a short-term line of credit of $55 million to facilitate the purchase of urea for the paddy crop. ‘Yala’ season. During her discussions with the International Monetary Fund in April, India’s Finance Minister Nirmala Sitharaman urged the multilateral agency to provide immediate assistance to Sri Lanka. On its part, Tamil Nadu decided to provide assistance of Rs 123 crore, which includes 40,000 tonnes of rice, 137 types of life saving medicines and 500 tonnes of milk powder. The first consignment, which was flagged off by state Chief Minister MK Stalin on May 18 from Chennai, reached Colombo four days later. Mr. Wickremesinghe and Leader of the Opposition in Parliament Sajith Premadasa thanked the Chief Minister. In a meeting with Sri Lanka’s High Commissioner to India Milinda Moragoda about 10 days ago, the Chief Minister assured him that the second consignment would be dispatched soon.

the baggage of history as a hindrance

Whether this union could lead to greater economic cooperation between Sri Lanka and South India, not necessarily Tamil Nadu alone, given the historical baggage, is anyone’s guess. As Jehan Perera, a prominent Sri Lankan peace activist, pointed out during a discussion on the crisis organized by the Press Institute of India last month, some sections of Sinhalese still hold the view that “India has been a threat to us. It will be in the future as well.” There could be danger for us.” This belief can be traced back to history when Sri Lanka was invaded by the rulers of South India who had let down the Sinhala kings. After the 1983 anti-Tamil massacre, the support provided by the Indian government to the Tamil rebels reinforced this perception. Bitter episodes from the past involving both the countries were remembered when Indian consignments of essential commodities reached Sri Lanka.

Despite India’s open willingness to participate in Sri Lanka’s development after the civil war, the scale of its participation has been modest. The reason is not far to seek. The manner in which the Rajapaksa regime unilaterally canceled the tripartite agreement signed in 2019 with India and Japan for the development of Colombo’s Eastern Container Terminal in February 2021 was a reflection of historic baggage, although the official cited the reason which was opposed to labor unions. Although India was later provided with projects such as the West Container Terminal, Trincomalee Oil Tank Farm and some renewable projects, there were several proposals that envisaged India’s participation but did not see the light of day.

Another project, a collaboration between NTPC Ltd and the Ceylon Electricity Board, was canceled when bids were to be called for a 500 MW coal-fired project in Sampur, Eastern Province (after obtaining environmental clearance). In fact, when Sri Lanka experienced prolonged power cuts a few months back, some people mentioned that if Sampur had come to fruition, the power shortage would not have been acute. Other projects such as the development of Kankesanthurai port and expansion of Palali airport in Jaffna, both of which envisaged Indian participation, would have become a reality if there had been a show of political will from the other side. A few days ago, the Sri Lankan cabinet had approved two connectivity proposals: flights from Jaffna to Tiruchi, Tamil Nadu, and a ferry service from Kankesanthurai in Puducherry to Karaikal. The project to build a sea bridge and tunnel connecting Rameswaram to Thalaimannar remains on paper despite India’s Road Transport and Highways Minister Nitin Gadkari informing the Lok Sabha in December 2015 about the Asian Development Bank’s preparations. It doesn’t require any great imagination to figure out why many popular brands of South Indian restaurants and retail clothing establishments, despite their overseas presence, are not opening their branches in Sri Lanka.

huge potential

Even now, there is immense potential for cooperation between the two countries in the field of infrastructure development. The economic crisis has restarted talk of connecting Sri Lanka’s electricity grid to India. If this project takes off, the first point of interconnectivity on the Indian side will most likely be in Tamil Nadu. India has cross-border energy trade with Bangladesh, Nepal, Bhutan and Myanmar.

India’s interests will also be served by the development of Sri Lanka’s eastern coast, especially the Trincomalee-Batticloa belt, which has well-known potential for tourism, commerce, trade and industry. At appropriate times, regular movement of people and goods should be allowed on the traditional sea routes of Thoothukudi-Colombo and Rameswaram-Thalaimannar. The apprehension in the minds of the Sinhalese majority about the threat to India could only be overcome by facilitating greater people-to-people interactions, including pilgrimages by monks and other sections of Sri Lankan society to places of Buddhist importance in the north. can go. India but also in South (Andhra Pradesh). Much has to be done but the opportunity created by the present circumstances must be used to bring Indian and Sri Lankan societies closer – a prerequisite for achieving an economic union between Sri Lanka and the southern states of India.

ramakrishnan.t@thehindu.co.in