Indian Prime Minister Narendra Modi’s three-day visit to Sri Lanka in early April 2025 proved pivotal in fortifying the two nations’ growing cooperation, particularly in the defense and energy sectors.
This marked the first visit by a foreign leader to Sri Lanka since President Anura Kumara Dissanayake assumed office in September 2024. Modi’s trip comes amid increasing competition with China for influence over the strategically located island nation.
During his visit, Modi was conferred with Sri Lanka’s highest civilian honor, the Sri Lanka Mitra Vibhushana, by President Dissanayake. The honor was a gesture of appreciation for India’s unwavering support during Sri Lanka’s economic crisis in 2022, which saw India provide an emergency financial bailout of $4 billion.
The two leaders held talks to bolster security and energy ties. “We believe that we have shared security interests. The security of both countries is interconnected and co-dependent,” Modi said, signaling India’s commitment to supporting Sri Lanka’s security interests while also advancing its own strategic objectives in the region.
India and Sri Lanka signed several pacts, including on power grid connectivity, digitalization, security and healthcare. Modi also inaugurated a $100 million solar power project, a joint venture between Ceylon Electricity Board and India’s National Thermal Power Corp.
Modi also inaugurated two major railway infrastructure projects, both funded by India. These include the refurbishment of the Maho-Omanthai railway line and the introduction of an advanced signaling system. These projects are part of India’s broader efforts to strengthen connectivity between Sri Lanka’s north and south, facilitating more efficient transport for both passengers and freight.
India, Sri Lanka Defense Cooperation
One of the key agreements signed during the visit was a five-year defense cooperation pact, which includes military training, information sharing, and joint initiatives aimed at enhancing regional security. This agreement is seen as a response to China’s increasing presence in Sri Lanka, particularly its interests in the Hambantota port and the planned $3.7 billion oil refinery.
India has long voiced concerns over Chinese military assets operating in Sri Lanka, including the docking of Chinese submarines and research vessels in Colombo. While Sri Lanka has refrained from allowing Chinese submarines to dock since 2014, tensions persist due to China’s strategic foothold in the region.
President Dissanayake reassured Modi that Sri Lanka’s territory would not be used for activities detrimental to India’s security. “Sri Lanka’s territory will not be allowed to be used by anyone to undermine India’s security,” he stated, reinforcing the country’s commitment to its neighbor’s defense interests.
UAE, India to develop energy hub in Sri Lanka
Energy cooperation was another central theme of the visit. India and the United Arab Emirates (UAE) signed a trilateral memorandum of understanding (MoU) with Sri Lanka to develop an energy hub in the strategically important district of Trincomalee. The MoU was signed by Khaled Nasser AlAmeri, Ambassador of the United Arab Emirates to Sri Lanka; Santosh Jha, High Commissioner of India to Sri Lanka, and Prof. K.T.M. Udayanga Hemapala, Secretary of the Ministry of Energy of Sri Lanka.
“The UAE is a strategic partner for India in the energy space and therefore was an ideal partner for this exercise that is being done for the first time in the region,” Indian Foreign Secretary Vikram Misri told reporters in Colombo. “The exact contours of UAE’s role will be elaborated once the business to business discussions kick off.”
This hub, which will include the construction of a multi-product pipeline and the refurbishment of a World War II-era tank farm, aims to enhance regional energy security and strengthen the energy infrastructure of both Sri Lanka and India. Abu Dhabi Ports Group PJSC (AD Ports), Indian Oil Corporation Limited (IOCL) and Ceylon Petroleum Corporation (CPC). These agencies will establish a Joint Venture Company to oversee project execution.
UAE Minister of Investment Mohamed Hassan Alsuwaidi said: “This MoU exemplifies the UAE’s commitment to strategic regional partnerships that promote diplomacy, long-term economic resilience and sustainable infrastructure development. Together with our partners in India and Sri Lanka, we aim to unlock the full potential of Trincomalee as a key energy and logistics gateway for South Asia.”
Public Protests
Despite the warm reception by President Dissanayake and the numerous agreements signed, Modi’s visit was not without controversy. Hundreds of protesters gathered in Colombo to voice their opposition to India’s increasing influence in Sri Lanka. Critics, particularly from the Frontline Socialist Party, accused President Dissanayake of capitulating to Indian dominance, citing the long-standing tension between Sri Lanka’s Tamil minority and India, particularly stemming from India’s 1987 intervention in Sri Lanka’s civil conflict.
Kumar Gunaratnam, leader of the Frontline Socialist Party, labeled the agreements a betrayal of Sri Lanka’s sovereignty, claiming that India had never been a genuine friend to Sri Lanka. However, these sentiments appear to be in the minority, with the government emphasizing the strategic importance of strong ties with India amid Sri Lanka’s ongoing economic recovery.
Competitive Regional landscape
Modi’s visit underscores India’s growing role in shaping the future of Sri Lanka’s economic and defense landscape. As Sri Lanka continues to recover from its financial crisis, its relationship with China remains complex, especially with Beijing’s heavy investments in infrastructure and its planned refinery project in Hambantota. However, India’s growing involvement—coupled with new partnerships with the UAE—positions New Delhi as a key player in Sri Lanka’s recovery and regional security.