For the first time, India and Sri Lanka are set to sign an ambitious defence cooperation pact during Prime Minister Narendra Modi’s visit to Colombo next week, in a significant move that comes nearly four decades after the Indian Peace Keeping Force’s intervention in the island nation.
IMAGE: President Droupadi Murmu meets Sri Lanka President Anura Kumara Disanayaka at Rashtrapati Bhavan, in New Delhi, December 17, 2025. Photograph: ANI Photo
The two sides are also likely to firm up a currency swap framework and seal several other agreements including one on debt restructuring following talks between Modi and Sri Lankan President Anura Kumara Disanayaka on April 5, people familiar with the matter said.
An arrangement to develop the Trincomalee oil firms jointly by India, Sri Lanka and the United Arab Emirates is also being finalised, they said.
In the second and final leg of his two-nation tour, Modi will arrive in Sri Lanka on the evening of April 4 on a three-day trip after concluding his visit to Thailand.
At a media briefing Friday, foreign secretary Vikram Misri said an MoU (Memorandum of Understanding) on defence cooperation is expected to be inked and it is being signed for the first time.
If signed, the MoU on defence cooperation is set to signal a major upward trajectory in India-Sri Lanka defence leaving behind the bitter chapter relating to India pulling out the Indian Peace Keeping Force from the island nation around 35 years ago.
Finer details of the proposed defence pact are not immediately available but it is expected to enhance the two-way defence engagements against the backdrop of China’s increasing presence in the Indian Ocean Region.
The docking of Chinese missile and satellite tracking ship ‘Yuan Wang’ at Hambantota port in August 2022 had triggered a diplomatic row between India and Sri Lanka. Another Chinese warship docked at the Colombo port in August 2023.
“Sri Lanka is an integral part of our ‘Neighbourhood First’ policy and the relationship, based on mutual trust and good will, has stood the test of time,” Misri said on the overall relations.
Modi’s visit will focus on promoting investments and deepening connectivity — physical connectivity, digital connectivity, energy connectivity and boost cooperation in various other domains, he said.
Modi will be the first foreign leader to be hosted by Disanayaka in his capacity as the Sri Lankan president. Modi last travelled to Sri Lanka in 2019.
The prime minister’s trip to Sri Lanka comes over three months after Disanayaka visited India during which he categorically conveyed to Modi that the island nation will not allow its territory to be used against New Delhi’s security interests.
“India has come to the assistance of Sri Lanka at critical moments, most recently during the unprecedented economic crisis that it faced in 2022,” Misri said.
“India was glad to be able to play a key role in economic stabilisation and recovery of Sri lanka, demonstrating its commitment as a dependable neighbour to Sri Lanka,” he said.
Misri said Modi’s visit to the island nation comes in the context of a recovering Sri Lankan economy.
As Sri Lanka resumes its “growth path”, the visit is coming at an opportune moment for giving the two countries an opportunity to explore new areas of partnership and cooperation, he added.
Sri Lanka was reeling under a massive economic crisis two years back and India extended financial assistance worth $4.5 billion to the country.
The foreign secretary said Modi is expected to raise the fishermen issue during his talks with Disanayaka.
This is a longstanding issue, Misri said, adding India has been highlighting the need to avoid use of force under all circumstances.
The foreign secretary said a long-lasting solution can be found through constructive engagement.
In Colombo, Modi and Disanayaka will dedicate several projects that are being built in that country with India’s assistance.
“We will also witness exchange of several MoUs pertaining to energy connectivity, digitisation, health and multi-sectoral grant assistance,” Misri said.
The two leaders will also witness the virtual ground breaking of the Sampur solar energy project.
This is in many senses going to be a milestone in the bilateral partnership, Misri said.
Modi is also scheduled to meet several political leaders.
On April 6, Modi and Disanayaka will travel together to the historic city of Anuradhapura where they will pay their respects at the Mahabodhi temple.
They will also jointly inaugurate two India-assisted projects there, according to Misri.
India-Sri Lanka bilateral ties witnessed upward trajectory in the last few years.
