The Sri Lankan High Commissioner to India, Milinda Moragoda, recently said in a statement that India and Sri Lanka should look forward to forge a larger strategic understanding by integrating Sri Lanka in India’s overall energy security policy framework. In an “integrated country strategy” document prepared by the ambassador, Moragoda suggested the need for both the countries to move from a ‘transactional’ to ‘strategic’ understanding.
Last week, Sri Lanka signed a deal with India’s Indian Oil Corporation to refurbish and develop the British-era Trincomalee oil farm, an 850-acre storage facility with a capacity of almost one million tonnes. Beside this, last year, State-owned Sri Lanka Ports Authority and India’s Adani Group finalised a deal to develop the west container terminal at Colombo port. Dredging work at the terminal is expected to begin soon.
A new milestone in #India–#SriLanka economic and energy partnership!!Congratulations to all parties on signing the Agreement to develop Trincomalee Oil Tank Farms. Sincerely appreciate the guidance from leadership of 🇮🇳&🇱🇰 and support from all Ministers and officials concerned. pic.twitter.com/HQALQJeGSu
— India in Sri Lanka (@IndiainSL) January 6, 2022
Moragoda said, “The west terminal [at Colombo port] and the tank farm are two very important transactions, As I see it, the two sides should move seamlessly into the strategic area.” He believes that the Trincomalee deal should integrate Sri Lanka with India in the petroleum, oil and gas sector. He also speculated that the two countries could look into joint oil and gas exploration in the Cauvery basin and also developing a refining facility at Trincomalee.
“For us, Trincomalee could potentially be a petroleum hub for India, both for storage and refining. Trincomalee can only service India, it is too far away from sea lanes..” Moragoda said. “As India is the world’s third-largest energy consumer, it can get much better deals for petroleum than Sri Lanka. We can work with India on our requirements and it will give us energy security.”
At the invitation of the Indian Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman, Minister of Finance of Sri Lanka Basil Rajapaksa concluded a successful two-day official visit to New Delhi from 01-02 December 2021. #lka @MilindaMoragoda pic.twitter.com/glGDREd1Cu
— Sri Lanka in India (@SLinIndia) December 3, 2021
China’s Involvement
A recent statement made by the Chinese foreign minister, Wang Yi, during his visit to Colombo where he said that no “third-party” should interfere in relations between Sri Lanka and China was widely perceived as a reference to India and its opposition towards the Chinese Belt and Road Initiative in the neighbouring countries.
Speaking on this, Moragoda clarified that the comment need not be analysed as their relationship with India was different than the one with China. He said, “For us, the relationship with India is the relationship with India. Prime Minister Mahinda Rajapaksa always has a very pithy way of putting things and when he was asked about this, he always said China is a very close friend, but India is our brother and sister.”
Economic & Strategic Co-operation
Speaking on various economic and strategic cooperation, Moragoda pointed that Sri Lanka expects to get a revolving credit line of $500 million from India’s Exim Bank for buying petrol and diesel and another package for emergency purchases of food and medicines. He added that there were also talks regarding a line of credit offered by India for counter-terrorism efforts and a grant for a naval floating dock.
Had an excellent discussion with Indian High Commissioner to #SriLanka HE Gopal Baglay at my office this morning where he confirmed the #SAARC #SWAP by RBI and other forms of bilateral cooperation. @IndiainSL @CBSL #SriLanka #India #Gopal_Baglay pic.twitter.com/i7CDGVP60n
— Ajith Nivard Cabraal (@an_cabraal) January 13, 2022
Following a meeting on last Thursday between the Sri Lanka’s Central Bank governor, Ajith Nivard Cabraal, and Indian envoy, Gopal Baglay, in Colombo, India shall be providing a SAARC currency swap for $400 Million among other forms of Cooperation.
Sri Lanka's High Commissioner to India @MilindaMoragoda explored avenues of further augmenting defence and security cooperation with India, when he met Defence Minister Shri Rajnath Singh @rajnathsingh in New Delhi, today (30). #lka @MFA_SriLanka pic.twitter.com/y2K5o1crey
— Sri Lanka in India (@SLinIndia) November 30, 2021
Moragoda pointed that Sri Lanka is the largest recipient of Indian defence scholarships, with 600-700 Sri Lankans training in India at any point of time. He said that Sri Lanka looked to further increase these numbers. He further added that Sri Lanka was also looking forward to use the Aadhar card as a template for Sri Lanka’s ID card under the leadership of Sri Lanka president Gotabaya Rajapaksa.
