Sri Lanka’s diplomatic relations with India have long been shaped by political decisions that often prioritized other global powers over regional collaboration. A notable instance was during the tenure of President J.R. Jayewardene, whose decision to lease the Trincomalee oil tank farm to a Singaporean company drew disapproval from India.
Successive Sri Lankan administrations, including those led by D.S. Senanayake, Dudley Senanayake, Sir John Kotelawala, and Ranasinghe Premadasa, pursued development by seeking aid and investment from Western countries. In contrast, the governments of S.W.R.D. Bandaranaike and Sirimavo Bandaranaike leaned towards the Soviet Union—now Russia—as their preferred development partner.
However, throughout these political transitions, there was little to no strategic planning on how Sri Lanka could work closely with its immediate neighbor, India, for economic development. Presidents Chandrika Bandaranaike Kumaratunga (elected in 1994), Mahinda Rajapaksa, Maithripala Sirisena, and Gotabaya Rajapaksa (elected in 2005 and later) primarily focused on aligning with either Western powers or China.
Japan has traditionally been viewed by both right-leaning United National Party (UNP) governments and left-leaning Sri Lanka Freedom Party (SLFP) administrations as a key development partner. Japanese aid was welcomed across party lines, reflecting a consistent belief in Japan’s potential to support Sri Lanka’s growth.
Despite this, Sri Lankan leaders consistently hesitated to enter into formal agreements with India or to welcome Indian investments. This reluctance was largely fueled by a longstanding anti-India sentiment within the country. Even during a time of severe economic crisis, the government led by Anura Kumara Dissanayake rejected a proposed wind power project by Adani Group—India’s first and only major investor to approach Sri Lanka in that period.
According to recent data released by the International Monetary Fund (IMF), India has now emerged as the world’s fourth-largest economy. This marks a historic opportunity for Sri Lanka, which has never before found itself neighboring a global economic powerhouse of this magnitude. While Sri Lanka continued to wait for aid and investment from Japan, India not only overtook Japan in global economic rankings but also surpassed the United Kingdom.
Even as India ascended past Britain on the list of top world economies, Sri Lanka remained indifferent. Today, as the economic realities shift rapidly, it is imperative that Sri Lanka reconsiders its approach and formulates a strategic roadmap to engage proactively with India.
