Sri Lankan to renovate the Kankesanthurai Port

Context

The Sri Lankan Cabinet has recently decided to renovate the Kankesanthurai Port in the Northern Province, with India agreeing to fund the entire project at a cost of USD 61.5 million. 

Key Highlights

• The Kankesanthurai Port, located in the northern area of Sri Lanka, covers about 16 acres and is situated 104 kilometers (56 nautical miles) from Karaikal Port in Pondicherry. 
• The direct passenger ship carrier connecting Nagapattinam in Tamil Nadu to Kankesanthurai port near Jaffna covers a distance of 111 kilometres (60 nautical miles) in about 3 and a half an hour.
• The task’s implementation was delayed due to higher anticipated costs, leading to discussions with India about finishing it under the Public Private Partnership Method.
• Considering the significance of the project, the Indian government has agreed to furnish the complete predicted cost of the project.

India’s Assistance during Economic Crisis in Sri Lanka

• The financial crisis in Sri Lanka drove it toward India for fast remedy. 
• India, as a part of its ‘Neighbourhood First’ coverage, extended guidance to Sri Lanka in the form of aid (close to $3.5 billion) to help secure Sri Lanka’s food, health and energy security.
• India delivered a consignment of tonnes of diesel to Sri Lanka to assist ease the extreme gasoline scarcity at some point of its worst economic disaster.
• India extended an additional $500 million credit line to Sri Lanka to import gas because it has been struggling to pay for imports after its foreign exchange reserves plummeted sharply, causing a devaluation of its currency and spiralling inflation.

India and Sri Lanka Relations

• Trade Relations: India-Sri Lanka Free Trade Agreement (ISFTA) in 2000 contributed substantially toward the enlargement of trade between the two countries.
  • India has traditionally been amongst Sri Lanka’s biggest trade partners and Sri Lanka remains amongst the biggest trade companions of India within the SAARC.
  • India is also one of the largest participants to Foreign Direct Investment in Sri Lanka. 
• Cultural relations: The Cultural Cooperation Agreement signed in 1977 bureaucracy the idea for periodic Cultural Exchange Programmes between the two nations.
• Tourism: India has traditionally been Sri Lanka’s top inbound tourism market, followed through China.
  • As per recent data from the Sri Lanka Tourism Development Authority, India is the most important source for vacationers in 2023.
• Maritime Security and Defence Cooperation: In 2011, a decision was taken to establish the Colombo Security Conclave which ambitions to similarly promote maritime security within the Indian Ocean Region.
  • India and Sri Lanka conducted a joint Military exercise named ‘Mitra Shakti’, Trilateral Maritime Exercise “Dosti”, and a Naval exercise named SLINEX.  
• Connectivity Projects: Recently, the 2 sides adopted a vision document to enhance maritime, energy and people to people connectivity.
  • With regard to maritime connectivity, the 2 sides plan to cooperate in the development of ports and logistics infrastructure at Colombo, Trincomalee, and Kankesanthurai to consolidate local logistics and shipping.
  • There are plans to increase a land bridge between the 2 countries to provide India with land access to the ports of Trincomalee and Colombo to reinforce economic growth.
• Multilateral Forum Collaboration: India and Sri Lanka are member nations of several local and multilateral companies such as the South Asian Association for Regional Cooperation (SAARC), South Asia Co-operative Environment Programme, South Asian Economic Union and BIMSTEC, working to decorate cultural and business ties.

Areas of Concern

• The Fishermen Issue: Sri Lanka’s proximity to Indian territorial waters has frequently blurred the road for fishermen on both sides in pursuit of fish stock.
  • Since 2016, a Joint Working Group on Fisheries (JWG)mechanism has been in place to deal with the instant concerns of fishermen of both sides and to discover a permanent strategy to the problem.
• Indian Ocean Geopolitics: The location is domestic to 35% of the arena’s population and its waters carrying -thirds of the sector’s oil shipments, and half of the world’s field shipments,’ the Indian Ocean assumed importance in the strategic calculus of major powers.
  • In recent years, subtle geo-political and strategic opposition in the IOR among the United States, China and India has been recognised by means of Sri Lanka as a likely risk to its security interest in the place.
• Rise of China: China’s growing strategic investments in important maritime ports in the IOR  has been a place of subject.
  • There is a lack of transparency in implementation of initiatives and viable navy use of ports by China that is the main concern for India, even though Sri Lanka keeps to assure India of no foul play.
  • The worry of Indian dominance over the territory of Sri Lanka by most of the Sri Lankans has been a truth on the grounds that its independence. The level of fear can also have decreased but the trust deficit remains. 

Way Ahead

• In spite of few setbacks, both the international locations apprehend the significance of enhancing bilateral relations, and a policy report released via the Sri Lanka Mission in India in 2021, became a nice flow. 
• The financial crisis and political chaos in Sri Lanka precipitated India to step in with help, as China regarded the alternative manner. 
• However, the task for India is in preserving a balance among its own interests and the interests of Sri Lanka. 
• So some distance between India and Sri Lanka appears so that it will cope with the strategic pulls and pressures in relations, regardless of respective foreign policy choices.

Source: The Hindu

UPSC Mains Practice Question

Q.‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement. (2022)

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