New Delhi: In a historic move, India and Sri Lanka are set to formalize a comprehensive defence cooperation agreement during Prime Minister Narendra Modi’s visit to Colombo next week. This marks a significant milestone nearly four decades after the Indian Peace Keeping Force (IPKF) withdrew from Sri Lanka.

During Modi’s visit, both nations are also expected to finalize a currency swap framework and sign multiple agreements, including a key pact on debt restructuring, following discussions with Sri Lankan President Anura Kumara Dissanayaka on April 5, sources familiar with the matter said. Additionally, plans are in progress for a trilateral collaboration between India, Sri Lanka, and the United Arab Emirates to jointly develop the Trincomalee oil facilities.

Modi’s three-day visit to Sri Lanka, starting on the evening of April 4, follows the conclusion of his Thailand trip. Foreign Secretary Vikram Misri confirmed in a media briefing that an MoU on defence cooperation—being signed for the first time—will be among the key agreements. If finalized, the defence agreement is expected to mark a significant enhancement in bilateral military engagements, particularly against the backdrop of China's growing strategic influence in the Indian Ocean. Recent developments, such as the docking of the Chinese missile and satellite tracking ship ‘Yuan Wang’ at Hambantota port in August 2022 and another Chinese warship’s arrival in Colombo in August 2023, had raised diplomatic concerns for India.

"Sri Lanka is a crucial part of our ‘Neighbourhood First’ policy, and the relationship, built on mutual trust and goodwill, has withstood the test of time," Misri remarked, emphasizing the broader scope of Modi’s visit. The discussions will focus on strengthening investment ties, enhancing physical and digital connectivity, expanding energy cooperation, and exploring new areas of collaboration.

Modi will be the first foreign leader to be hosted by Dissanayaka in his role as Sri Lanka’s president. His visit follows Dissanayaka’s recent trip to India, during which he assured Modi that Sri Lanka would not allow its territory to be used in ways that could threaten India’s security interests. India has been a key partner in Sri Lanka’s economic recovery, having extended financial assistance worth $4.5 billion during the country’s severe economic crisis in 2022. Misri highlighted India’s role in stabilizing Sri Lanka’s economy and its continued commitment as a reliable neighbor.

The long-standing issue of fishermen’s rights is also expected to be on the agenda, with Modi likely to emphasize the importance of avoiding the use of force and seeking a sustainable resolution through constructive dialogue. As part of the visit, Modi and Dissanayaka will jointly inaugurate multiple projects supported by India, including initiatives in energy connectivity, digital transformation, healthcare, and multi-sectoral development grants. They will also participate in the virtual groundbreaking ceremony for the Sampur solar energy project, which is seen as a milestone in bilateral cooperation.

On April 6, the two leaders will travel to the historic city of Anuradhapura, where they will pay their respects at the Mahabodhi temple and inaugurate two India-backed development projects. Modi is also scheduled to meet several political leaders during his stay. In recent years, India-Sri Lanka relations have seen significant progress, with both nations working towards deeper strategic and economic partnerships.

Disclaimer: This image is taken from Reuters.