Sri Lanka Pursues Closer Ties with India

Sri Lanka's economy is heavily indebted to China due to high-interest loans from state-owned banks, which have led the country into a semi-colonial status, as highlighted by Peter Breuer of the IMF. Chinese investments, while intended to boost infrastructure, have primarily served Beijing's strategic interests rather than fostering local economic growth. In response, Sri Lankan President Anura Kumara Dissanayake's recent visit to India marked a reaffirmation of ties, where he assured PM Modi that Sri Lanka will not allow its territory to be used against India's interests. The Dissanayake administration is also seeking to modernize the Indo-Sri Lanka Free Trade Agreement to enhance economic cooperation, while expressing caution regarding the Economic and Technology Cooperation Agreement with India. This balancing act underscores the complexities of Sri Lanka's foreign relations as it navigates ties with both China and India. The evolving political landscape suggests a strategic pivot towards India amidst concerns over Chinese influence.