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In a significant diplomatic and strategic move, India’s Prime Minister Narendra Modi concluded a three-day visit to Sri Lanka, during which he secured key defense and energy deals aimed at bolstering ties between the two nations.

The three-day visit (April 3-6, 2025) by Modi is the first by a foreign leader since Sri Lankan President Anura Kumara Dissanayake took office in September 2024. The diplomatic engagement in Sri Lanka underscores India’s commitment to securing its interests in the region amid growing competition with China.

Defense and Energy agreements

During his visit, Prime Minister Modi and President Dissanayake oversaw the signing of several crucial agreements focusing on energy, defense, and infrastructure development. The agreements reflect a strategic shift towards deeper cooperation as both countries navigate an increasingly complex geopolitical environment.

Dissanayake government rolled out the red carpet for Modi and conferred on him the country’s highest civilian honour for “the deep personal friendship” shown to Sri Lanka.

Modi travelled to the historic city of Anuradhapura in north central Sri Lanka to launch two India-assisted railway projects before wrapping up his visit to the island nation. The highlight of the visit was the launch of a joint venture to construct a 120-megawatt solar power plant in the Trincomalee district of Sri Lanka, an area of strategic importance. The project is a testament to India’s support for Sri Lanka’s energy sector, which has been grappling with challenges like fuel shortages and an overreliance on fossil fuels. This initiative aims to reduce Sri Lanka’s dependence on oil and coal while advancing its renewable energy capabilities.

India has been a major player in providing support, including a $4 billion financial aid package, following Sri Lanka’s economic collapse in 2022. This assistance has been critical in helping Sri Lanka stabilize its economy and restructure its mounting debt.

India-Sri Lanka Defense cooperation

New Delhi and Colombo also signed a five-year defense cooperation agreement, which includes the training of Sri Lankan military personnel in India, as well as the sharing of information and technology. This agreement solidifies the nations’ security ties, especially as they face common challenges in the region. India’s strategic interests in the Indian Ocean have long been a key concern, particularly with China’s increasing presence in Sri Lanka.

Both leaders reaffirmed their commitment to regional stability, with Modi underscoring the interdependent nature of their security interests. “We believe that our security interests are aligned. Our security is interconnected and co-dependent,” Modi said.

In a nod to India’s security concerns, Dissanayake reiterated Sri Lanka’s position that its territory will not be used to undermine India’s security. Sri Lanka is carefully navigating the delicate task of balancing its strategic relations with both India and China, which has been an important economic partner and provided billions of dollars in loans and investments. In response to India’s concerns over Chinese research activities, Sri Lanka imposed a year-long ban on foreign research vessels. However, in January 2025, the country reversed its decision, opting to implement new protocols that aim to address India’s security concerns while managing China’s growing influence in the Indian Ocean.

India, Sri Lanka and UAE sign MoU to develop regional energy hub

During Prime Minister Modi’s visit to Sri Lanka, a landmark trilateral agreement was signed between the UAE, India, and Sri Lanka to jointly develop the strategically important city of Trincomalee into a key regional energy hub.

The Memorandum of Understanding (MoU) was signed by UAE Ambassador to Sri Lanka Khaled Nasser AlAmeri, Indian High Commissioner to Sri Lanka Santosh Jha, and Secretary of Sri Lanka’s Ministry of Energy Prof. K.T.M. Udayanga Hemapala. The agreement paves the way for a range of collaborative infrastructure and energy projects designed to strengthen energy security in the region.

UAE Minister of Investment Mohamed Hassan Alsuwaidi said the agreement “exemplifies the UAE’s commitment to strategic regional partnerships that promote diplomacy, long-term economic resilience and sustainable infrastructure development,” adding that the partnership would “unlock the full potential of Trincomalee as a key energy and logistics gateway for South Asia.”

The development plan includes refurbishing the Trincomalee Tank Farm, establishing a new refinery, and constructing a bi-directional petroleum pipeline between India and Sri Lanka. These initiatives will be executed through a joint venture, with each nation designating its respective agencies—Abu Dhabi Ports Group, Indian Oil Corporation Limited, and Ceylon Petroleum Corporation.

Protests and political backdrop

The visit was not without controversy. In Colombo, hundreds of protesters gathered near the main railway station, accusing President Dissanayake of compromising Sri Lanka’s sovereignty and aligning too closely with India. The protests were led by the Frontline Socialist Party, a radical faction that has historically been critical of India’s involvement in Sri Lanka. The group’s leader, Kumar Gunaratnam, called the agreements a betrayal and questioned India’s role as a “genuine friend” to Sri Lanka.

Sri Lanka’s history with India is marked by periods of tension, particularly during the civil war, when India, which has its own sizable Tamil population, intervened in 1987 with the signing of a peace agreement. While the Tamil Tigers rejected the agreement and continued their insurgency until 2009, India’s historical ties with Sri Lanka’s Tamil population remain a sensitive issue.