India-Sri Lanka Relations - Fishermen Issue, Tamil Ethnic Conflict, and Economic Cooperation

India-Sri Lanka Relations for UPSC

1) Why India–Sri Lanka Relations Matter for UPSC (GS2, Neighbourhood First, Maritime Security)

UPSC relevance: India–Sri Lanka relations sit at the intersection of GS2 (International Relations) and India's core strategic priorities: Neighbourhood First, Security and Growth in the Indian Ocean, and maritime domain awareness. Sri Lanka's location near major Sea Lanes of Communication (SLOCs) makes it central to India's Indian Ocean strategy, including anti-terrorism, counter-smuggling, humanitarian assistance and disaster relief (HADR), and port-led connectivity.

Neighbourhood First is not only about diplomacy but also about economic stabilisation of neighbours, reliable connectivity (ferry, flights, grid links), and building trust through predictable development cooperation. India's support during Sri Lanka's economic crisis (2022) became a major contemporary case study of "first responder" diplomacy.

Exam trigger areas commonly asked in UPSC include: (i) domestic politics shaping foreign policy (Tamil Nadu factor), (ii) ethnic reconciliation and devolution (13th Amendment), (iii) maritime disputes (fishermen, Katchatheevu), (iv) external power competition (China factor), and (v) connectivity and economic integration (ISFTA, ports, energy corridors).

2) Historical Evolution: Ancient Ties to 1987 Indo–Sri Lanka Accord

2.1 Ancient and cultural ties

India and Sri Lanka share deep civilisational linkages across religion, language, art, and trade. Buddhism travelled from the Indian subcontinent to Sri Lanka in the Mauryan period tradition (Ashokan outreach), shaping Sri Lankan cultural identity and religious geography. In parallel, the Ramayana tradition and shared Indic cultural motifs appear in literature and popular memory, strengthening "civilisational diplomacy" and people-to-people affinity.

2.2 Colonial period and migration linkages

Under colonial rule, India–Sri Lanka ties were shaped by plantation economy and migration flows. The presence of Indian-origin Tamils in Sri Lanka (estate/plantation communities) created long-term political and citizenship debates. Post-independence, the handling of Indian-origin Tamils and repatriation arrangements influenced perceptions and domestic politics in both countries, especially in Tamil Nadu.

2.3 Post-independence relations: cooperation with periodic tensions

After 1947–48 independence (India 1947; Sri Lanka 1948), bilateral relations expanded in trade, education, culture, and later security. However, internal ethnic conflict in Sri Lanka and its spillover into Tamil Nadu politics became a defining factor from the late 1970s and 1980s onward.

2.4 1987 Indo–Sri Lanka Accord: turning point

The Indo–Sri Lanka Accord signed on 29 July 1987 became the most consequential milestone in modern bilateral ties. It sought to address the Sri Lankan Tamil issue through devolution and political settlement, and it created the framework that led to the 13th Amendment to Sri Lanka's Constitution and establishment of Provincial Councils.

3) Fishermen Issue: Palk Bay Dispute and Sustainable Solutions

The Palk Bay dispute is one of the most persistent irritants in India–Sri Lanka relations. It involves competing livelihoods of fishermen from Tamil Nadu (India) and Northern Province (Sri Lanka), complicated by proximity, traditional fishing patterns, and the International Maritime Boundary Line (IMBL).

3.1 Core drivers of the dispute

• Geography and proximity: The narrow Palk Strait makes accidental and deliberate crossings easier, especially during poor visibility or GPS errors.
• Resource depletion and livelihood stress: Intensive fishing pressure and ecological stress push fishermen to seek better catch areas.
• Mechanised vs traditional fishing: The major conflict is between Indian mechanised trawlers and Sri Lankan artisanal fishermen, with Sri Lankan side accusing Indian trawlers of destructive practices like bottom trawling and damage to marine habitats.

3.2 "Poaching" allegations and arrests

Sri Lanka frequently arrests Indian fishermen and seizes boats for alleged illegal fishing in Sri Lankan waters, while India raises humanitarian and livelihood concerns. This recurring cycle creates periodic diplomatic pressure, particularly from Tamil Nadu, and makes this issue highly exam-relevant under "domestic politics influencing foreign policy."

3.3 Joint Working Group (JWG) and institutional mechanisms

India and Sri Lanka agreed to set up a Joint Working Group (JWG) on Fisheries in November 2016 as an institutional mechanism to find a permanent solution. The decision followed ministerial-level talks on fishermen issues, and the JWG's Terms of Reference included: ending bottom trawling, framing SOPs for handing over apprehended fishermen, and exploring cooperation on patrolling.

The 6th meeting of the India–Sri Lanka JWG on Fisheries was held on 29 October 2024 in Colombo, reflecting continued engagement through officials and technical agencies.

3.4 GPS-based solutions and "smart compliance"

A practical operational layer involves improving navigation awareness and compliance: reliable GPS/GNSS devices, training on IMBL coordinates, and "geo-fencing" alerts that warn fishermen when they approach restricted waters. Such solutions help reduce inadvertent crossings while sustaining livelihoods.

3.5 Transition from trawling to deep-sea fishing

A long-term solution repeatedly discussed is transitioning Indian trawler fleets to deep-sea fishing and discouraging bottom trawling in sensitive Palk Bay areas. India has also initiated schemes to support deep-sea fishing alternatives.

4) Tamil Ethnic Conflict: From Black July to IPKF and 13th Amendment

4.1 Historical background and Black July (1983)

Sri Lanka's ethnic conflict roots lie in competing nationalisms, language policies, identity politics, and majoritarian-minority tensions. The conflict escalated dramatically after Black July (1983), a wave of anti-Tamil violence that deepened mistrust and pushed Sri Lanka into a prolonged civil war phase, with strong resonance in Tamil Nadu through refugee flows and political mobilisation.

4.2 LTTE and militarisation of conflict

The LTTE emerged as a major militant actor, and the conflict evolved into an armed struggle with international ramifications, including diaspora financing and transnational networks. For India, the conflict became simultaneously a humanitarian issue, a domestic political issue (Tamil Nadu), and a strategic issue (regional stability).

4.3 IPKF deployment (1987–1990)

Following the Indo–Sri Lanka Accord, India deployed the Indian Peace Keeping Force (IPKF) in Sri Lanka (commonly associated with Operation Pawan) during 1987–1990. The objective was to stabilise conditions and support disarmament, but it became controversial due to complex ground realities, shifting alignments, and combat with the LTTE.

4.4 Rajiv Gandhi assassination (1991) and long-term impact

The assassination of former Prime Minister Rajiv Gandhi in 1991 by an LTTE-linked suicide attack became a watershed in India's domestic and security approach to Sri Lanka-related militancy. It shaped India's later posture: support for a united Sri Lanka, insistence on political reconciliation, and emphasis on counter-terrorism cooperation, while also keeping humanitarian concerns on the agenda.

4.5 Provincial Councils, Tamil political rights, and Colombo's implementation record

The 13th Amendment created Provincial Councils to devolve certain powers. India's consistent position has been to support full implementation of the 13th Amendment and meaningful reconciliation. Sri Lanka's implementation has been uneven, and debates continue over the scope of devolution, centre–province relations, and political trust-building.

5) Katchatheevu Island Issue: 1974 Agreement, Fishermen Concerns, Legal Status

Katchatheevu is a small uninhabited island in the Palk Strait that remains politically sensitive in India (especially Tamil Nadu) primarily because of fishermen access and perceived loss of traditional fishing space.

5.1 1974 agreement and historical context

India and Sri Lanka signed maritime agreements in 1974 (and later in 1976) to delimit boundaries in the Palk Strait region. In practice, the island came under Sri Lankan sovereignty, but the arrangements historically recognised limited access for Indian fishermen for specific non-fishing purposes such as rest, drying nets, and the annual St. Anthony's festival.

5.2 Tamil Nadu's position and domestic politics

Tamil Nadu politics often raises demands to "retrieve" Katchatheevu, arguing historical and livelihood grounds. This creates a classic GS2 theme: how domestic politics can constrain foreign policy choices and complicate diplomatic signalling.

5.3 Legal status and Sri Lanka's stand

Sri Lanka has repeatedly indicated that it sees no reason to re-open the issue, describing it as settled decades ago. The issue remains sensitive due to continuing fishermen detentions and boat seizures, which are often framed as consequences of boundary and access restrictions.

6) Economic Cooperation: ISFTA (2000), ETCA/CEPA, Trade, Investments, Rupee Settlement

6.1 India–Sri Lanka Free Trade Agreement (ISFTA)

The India–Sri Lanka Free Trade Agreement (ISFTA) was signed on 28 December 1998 and entered into force on 1 March 2000. It provided tariff concessions and structured market access with rules of origin and value addition conditions.

6.2 Trade volume and structure

Merchandise trade between India and Sri Lanka reached USD 5.5 billion in FY 2023–24, with India's exports around USD 4.1 billion and Sri Lanka's exports around USD 1.4 billion (as per Indian official brief).

UPSC angle: Trade figures help you evaluate asymmetry, dependence patterns (Sri Lanka imports more from India), and how economic tools (credit lines, currency settlement) support foreign policy objectives.

6.3 ETCA/CEPA negotiations: why difficult

Proposed expansion of economic integration through broader agreements (often referred to in public debate as CEPA/ETCA-type arrangements) has faced delays due to concerns in Sri Lanka about services liberalisation, labour market sensitivities, and domestic political opposition. For UPSC, the analytical focus is: how domestic interest groups and political narratives can slow bilateral economic deals.

6.4 Credit lines, investments, and economic diplomacy

Beyond trade, India has used Lines of Credit (LoCs), development partnership, and private investment to strengthen economic ties and strategic trust—especially visible during Sri Lanka's economic crisis (2022).

6.5 Indian rupee trade settlement and INR as designated foreign currency

In the crisis context and to facilitate regional trade, Sri Lanka authorised the Indian Rupee (INR) as a designated foreign currency with the concurrence of RBI (not legal tender for domestic LKR transactions). This fits into the larger story of promoting local currency trade settlement and lowering dependence on hard currencies in bilateral trade.

7) Defence and Security: Maritime Security, Exercises, MoUs, Intelligence Sharing

7.1 Why security cooperation is central

Sri Lanka sits close to critical Indian Ocean shipping lanes. For India, the security priority is to prevent Sri Lankan territory or waters from being used for activities that threaten India's security (terrorism, drug trafficking, arms smuggling, hostile surveillance). This is also linked to broader Indo-Pacific stability.

7.2 Defence Cooperation MoU (2025)

India and Sri Lanka signed an MoU on Defence Cooperation during an Indian Prime Minister's visit in April 2025, described as a first-of-its-kind umbrella framework to consolidate ongoing defence cooperation in a structured manner.

7.3 Joint exercises and interoperability

• SLINEX (naval exercise): conceptualised in 2005 and held regularly to enhance maritime cooperation and interoperability.
• Mitra Shakti (army exercise): a bilateral military exercise held in alternating venues; recent editions have continued to strengthen interoperability and disaster response capabilities.
• DOSTI (coast guard exercise): a trilateral coast guard exercise involving India, Sri Lanka, and Maldives, supporting coordinated maritime law enforcement and SAR.

7.4 Maritime Domain Awareness (MDA) and capacity building

India's security partnership includes training, equipment support, and information-sharing. A notable example is India gifting a Dornier Maritime Reconnaissance aircraft to strengthen Sri Lanka's maritime security capacity (August 2022), along with training support.

7.5 Indo-Pacific capability layer: Dhruv helicopters and surveillance ecosystem

In a broader Indo-Pacific context, India's maritime surveillance and SAR posture uses platforms such as maritime patrol aircraft and rotary-wing assets. For instance, India signed contracts for acquisition of Advanced Light Helicopters (ALH) Dhruv Mk III for Indian forces (including Coast Guard) in March 2024, strengthening coastal security and SAR capacity that supports India's regional "first responder" role.

7.6 Intelligence sharing and counter-terrorism cooperation

Counter-terrorism cooperation, intelligence sharing, and coastal surveillance are critical, especially after transnational security incidents in the region. For UPSC Mains, you can link this with non-traditional security threats (terrorism, narcotics, illegal migration) and the need for institutionalised security dialogues.

8) Connectivity Projects: Ferry, Ports, Grid Connectivity, Petroleum Pipeline

8.1 Ferry services (Nagapattinam–Kankesanthurai)

The passenger ferry service between Nagapattinam (India) and Kankesanthurai (Sri Lanka) was launched on 14 October 2023 and later resumed in August 2024 after a break, signalling a revival of short-distance people-to-people connectivity in the Palk Bay region.

8.2 Colombo Port: West Container Terminal (WCT/CWIT)

The Colombo West International Terminal (CWIT) is a major port partnership involving Sri Lanka Ports Authority, India's Adani Ports, and Sri Lanka's John Keells Holdings. Equity structure reported: Adani Ports 51%, John Keells 34%, SLPA 15%. The project is widely discussed as strategically significant due to Colombo's role as a transshipment hub in the Indian Ocean.

8.3 Power grid connectivity (undersea transmission link)

India and Sri Lanka have been working on an undersea power transmission link estimated around USD 1.2 billion, aimed at connecting Sri Lanka's grid with India's to improve energy security and enable electricity trade.

8.4 Petroleum pipeline and Trincomalee energy hub

Energy connectivity has expanded from discussion to formal vision documents and MoUs. A bilateral vision document (July 2023) recorded cooperation for a multi-product petroleum pipeline from southern India to Sri Lanka.

In April 2025, India, Sri Lanka, and the UAE signed a trilateral MoU to develop Trincomalee as an energy hub, with reporting indicating the project could include a multi-product and even bi-directional petroleum pipeline component as part of broader energy logistics and fuel security.

9) India's Support During Sri Lanka Economic Crisis (2022): Scale and Instruments

Sri Lanka's 2022 crisis (foreign exchange shortages, fuel and medicine scarcity, debt stress) created a major regional stability challenge. India's response became a textbook case for UPSC on Neighbourhood First and "first responder" diplomacy.

9.1 Approximate scale: around USD 4 billion assistance

Indian assistance during the crisis is widely described as around USD 4 billion in various forms (credit facilities, fuel support, essential goods, swaps), supporting Sri Lanka's immediate imports and stabilisation.

9.2 Key instruments (with dates and examples)

• Fuel credit line: A USD 500 million Line of Credit was extended in February 2022 for purchase of petroleum products from India.
• Essential items facility: A USD 1 billion credit facility for essential items (food, medicines, fuel etc.) was extended in March 2022 for one year and later extended further upon Sri Lanka's request.
• Currency swap: Analytical accounts note a USD 400 million currency swap facility via RBI during early 2022 to ease forex stress.

9.3 IMF engagement and debt restructuring support

India provided financial assurances to facilitate Sri Lanka's IMF programme negotiations and highlighted the need for equitable treatment of creditors. This shows how economic diplomacy can support stabilisation and protect regional security interests.

10) China Factor: Hambantota, Port City, BRI, Yuan Wang 5, and Balance Diplomacy

The "China factor" is central to strategic analysis of India–Sri Lanka ties. Sri Lanka's infrastructure financing needs and China's large-scale projects have produced both development assets and debt/political controversies, creating a classic UPSC theme: small state balancing and strategic competition in the Indian Ocean.

10.1 Hambantota Port: debt-to-equity narrative and strategic anxieties

Hambantota became emblematic of debt, lease, and strategic access debates. Reuters reported a USD 1.12 billion deal related to operating Hambantota port, including a USD 584 million payment as part of a debt-to-equity arrangement. It is commonly linked with the 99-year lease narrative in public discourse.

10.2 Colombo Port City: scale and geopolitical concerns

Colombo Port City is widely reported as a major Chinese-backed real estate/SEZ-style project. It has been associated with investment around USD 1.4 billion in reporting and project narratives.

10.3 Yuan Wang 5 controversy (2022)

The visit of China's vessel Yuan Wang 5 to Sri Lanka in August 2022 triggered regional attention and Indian security concerns, illustrating the link between port access, maritime surveillance anxieties, and the importance of "no use of territory against India" type assurances in regional diplomacy.

10.4 Balancing diplomacy: Sri Lanka's tightrope

Sri Lanka's approach can be seen as balancing multiple external partners (India, China, Japan, West, Gulf) to maximise development and manage debt. For India, the policy task is to offer credible alternatives (connectivity, energy, investment) without appearing coercive, while protecting core security interests.

11) Indian Infrastructure and Development Projects in Sri Lanka

11.1 Trincomalee Oil Tank Farm and energy cooperation

The Trincomalee oil tank farm (World War II-era storage complex) is strategically located near the Trincomalee harbour. It includes 99 tanks, often described as around 12,000 kilolitres capacity each in standard references, and has long featured in India–Sri Lanka energy discussions.

A Reuters report (January 2022) described a new governance/lease arrangement: Lanka IOC to have 14 tanks on a 50-year lease, a joint venture (Trinco Petroleum Terminal) to develop a large set of tanks, and CPC to use remaining tanks.

11.2 Jaffna (Palaly) Airport rehabilitation

India extended grant assistance for rehabilitation of runway and basic infrastructure at the Palaly Airfield (Jaffna) under an MoU concluded in November 2005. Jaffna International Airport recommenced operations from 17 October 2019, enhancing regional connectivity between northern Sri Lanka and India.

11.3 Housing projects in Northern and Eastern Provinces

India's Indian Housing Project is among the largest grant-assisted projects undertaken by India abroad. Official project notes highlight that India announced construction of 50,000 houses in June 2010 (outlay noted in LKR), with pilot and later phases implemented through beneficiary-driven mechanisms and MoUs.

11.4 Wider development assistance footprint

India's development cooperation has covered railways, ports, vocational training, cultural centres, hospitals, livelihood projects, and community development. A Lok Sabha response noted that since 2009, India committed assistance worth Rs. 7,800 crore as grants and Lines of Credit for rehabilitation and infrastructure projects in Sri Lanka's Northern and Eastern Provinces (including housing, Northern Railway line, Palaly airport, KKS harbour).

12) Comparison Table: Key Bilateral Agreements and Frameworks

13) Comparison Table: India's Assistance vs China's Investment in Sri Lanka

14) UPSC Previous Year Questions (PYQs) with Model Approaches

Model approach (How to write)

• Intro: One-line thesis: India–Sri Lanka ties show domestic politics (Tamil Nadu, refugees, fishermen) shaping diplomacy.
• Body Part 1: Tamil issue spillover (1983 riots, refugees, 13th Amendment expectations, reconciliation).
• Body Part 2: Fishermen/Katchatheevu as livelihood + identity issue; arrests/seizures; state pressure on Centre; JWG mechanism.
• Body Part 3: Domestic political narratives influencing stance on China factor, ports, and security agreements.
• Conclusion: Balance domestic sensitivities with long-term national interest; institutionalised dialogues; sustainable fisheries transition.

Model approach (How to write)

• Intro: Mention civilisational proximity + strategic neighbour; crisis as test of Neighbourhood First.
• Body Part 1: Brief causes of crisis (forex shortage, debt stress, import collapse) and why it matters to India (stability, maritime security).
• Body Part 2 (Core): List India's instruments: LoCs (fuel/essentials), currency swap, supplies, diplomatic assurances to IMF; quantify key figures.
• Body Part 3: Strategic dividends: trust, connectivity momentum, but also need to respect Sri Lanka's sovereignty and avoid backlash.
• Conclusion: Long-term resilience through trade, energy connectivity, and inclusive reconciliation (13th Amendment).

Model approach (How to attempt)

• Watch extreme words: "consistently increased" is an absolute claim; trade data usually fluctuates → statement (1) is suspicious.
• Use known trade patterns: India–Bangladesh trade is large and textiles are important → statement (2) more plausible.
• Regional ranking: Nepal is important but not typically the largest South Asian trade partner → statement (3) likely incorrect.

15) Conclusion: Way Forward for Stable, Strategic, and People-Centric Relations

India–Sri Lanka relations are best understood as a mix of civilisational closeness and hard strategic geography. The relationship will remain sensitive as long as the fishermen dispute and the Tamil question remain politically charged, but it also offers major opportunities through economic recovery partnership, energy connectivity, and maritime security cooperation.

Way forward (exam-ready points):

• Sustainable fisheries settlement: time-bound transition away from bottom trawling, enforceable SOPs, gear conversion, deep-sea fishing support, and robust JWG/fishermen-level talks.
• Reconciliation and devolution: support for a political solution within a united Sri Lanka with meaningful implementation of devolution commitments and rights-based reconciliation.
• Connectivity as trust-builder: scale up ferry/air connectivity, fast-track grid link feasibility, and petroleum pipeline/energy hub projects with transparent commercial terms.
• Balanced strategic posture: strengthen defence cooperation, MDA, and counter-terror cooperation while respecting Sri Lanka's sovereignty and managing perceptions to prevent backlash.
• Compete by delivering: offer high-quality, timely, financially sustainable projects as an alternative to high-debt models, especially in ports, energy, and digital public infrastructure.

For UPSC, a high-scoring answer links domestic factors (Tamil Nadu, fishermen) with strategic imperatives (Indian Ocean security, China factor) and proposes institutional, sustainable solutions rather than only diplomatic statements.