Politics and Protectionism: Decoding the Challenges to India

[a] Years of unresolved structural issues, together with the Rajapaksa government’s economic mismanagement, contributed to a shortage of foreign reserves and necessities like food, fuel, and medicine. This resulted in the Aragalaya protests and a subsequent political crisis in the country. See: https://www.orfonline.org/expert-speak/sri-lankan-crisis

[b] India’s interest in developing Trincomalee into an energy hub dates back to the 1980s. For this, India is keen on upgrading the oil tank farms developed by Great Britain during their colonial rule in Sri Lanka. However, the project has made little progress over the years for various reasons.

[c] During colonial rule, Great Britian emphasised increasing connectivity between India and Sri Lanka for their economic interests and access. Grand plans of connectivity, including a proposal for rail connectivity were placed at the forefront, and India’s trade with the Colombo Port also increased. See: https://www.cambridge.org/core/services/aop-cambridge-core/content/view/359F14716BF4E88ADFD291481A30DEC8/S001041751700007Xa.pdf/towards-a-critical-history-of-connection-the-port-of-colombo-the-geographical-circuit-and-the-visual-politics-of-new-imperialism-ca-1880-1914.pdf

[d] In Sri Lanka, subsequent governments used subsidies, schemes, bureaucracy, and state-owned enterprises to promote clientelism and enhance their voter base.

[e] Increasing ethnic tensions between the Sinhala and Tamil communities led to a civil war in 1983. In 1987, India intervened in the conflict to restore peace in the island nation. Indian presence triggered another civil war in the South of the country by extreme-left Sinhala nationalists. The civil war was led by the Janatha Vimukthi Peramuna (JVP), the current ruling party of Sri Lanka.

[f] The port was operationalised in 2013 and built with a US$200-million Chinese loan.

[g] The BIA is being upgraded with Japan’s assistance and aid; the project was paused during the economic crisis.

[h] The backlash emerged at a time when India-registered VFS and IVS firms won the contract to issue visas in the BIA. The Government of India later denied any involvement in the deal.

[i] JVP-NPP were elected to power for the first time in history in 2024. It has a very minimal voter base and receives support from voters who were hoping for systemic and structural changes following the crisis.

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[28] Gopal Suri, “Trincomalee: India’s Call,” Vivekananda International Foundation, April 27, 2017, https://www.vifindia.org/print/3763?via=at.

[29] R.K. Radhakrishnan, “India, Sri Lanka MoU to re-build port,” The Hindu, July 22, 2011, https://www.thehindu.com/news/international/india-sri-lanka-mou-to-rebuild-port/article2281691.ece.

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[31] Meera Srinivasan, “SL’s Northern Province CM Calls for Bigger Role in India-Assisted Development Projects,” The Hindu, January 14, 2018, https://www.thehindu.com/news/international/wigneswaran-wants-bigger-role-for-sls-northern-province-in-development-projects/article22440493.ece.

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[33] “India’s Grant Assistance to Sri Lanka Stands at USD 780 Million,” Newswire, January 8, 2025, https://www.newswire.lk/2025/01/08/indias-grant-assistance-to-sri-lanka-stands-at-usd-780-million/.

[34] “India to Grant Full Cost of Lanka Northern Port Development,” Economic Times Infra, April 30, 2024, https://infra.economictimes.indiatimes.com/news/ports-shipping/india-to-grant-full-cost-of-lanka-northern-port-development/109733407.

[35] “India, Sri Lanka Talks to Develop Trincomalee Port Enters Final Stage,” The New Indian Express, January 19, 2017, https://www.newindianexpress.com/nation/2017/Jan/18/india-sri-lanka-talks-to-develop-trincomalee-port-enters-final-stage-1560979.html.

[36] P.K. Balachandran, “Why Is Trincomalee Port Still Undeveloped?,” The Diplomat, March 4, 2023, https://thediplomat.com/2023/03/why-is-trincomalee-port-still-undeveloped/.

[37] “Jaishankar to Visit Sri Lanka to Coordinate PM Modi Visit: President,” Newswire, June 11, 2024, https://www.newswire.lk/2024/06/11/jaishankar-to-visit-sri-lanka-to-coordinate-pm-modi-visit-president/.

[38] “Govt. to Ink MoU with India to Fund Eastern Province Development Projects,” The Morning, December 24, 2024, https://www.themorning.lk/articles/jRJKFInhpFUUlQNHnot8.

[39] Arun Janardhanan and Nirupama Subramanian, “Explained: The Colombo Port Setback for India,” Indian Express, February 4, 2021, https://indianexpress.com/article/explained/colombo-port-india-sri-lanka-7173610/.

[40] P Manoj, “Govt Keen to Utilise India Ports Global for Running Ports Secured Overseas on G2G Basis After Adani Episode,” Economic Times Infra, February 15, 2023, https://infra.economictimes.indiatimes.com/news/ports-shipping/govt-keen-to-utilise-india-ports-global-for-running-ports-secured-overseas-on-g2g-basis-after-adani-episode/97937431.

[41] “Sri Lanka’s Adani, John Keells Container Terminal to Start in Early 2025,” Economy Next, July 31, 2024, https://economynext.com/sri-lankas-adani-john-keells-container-terminal-to-start-in-early-2025-174564/.

[42] “Adani Ports Withdraws DFC Funding Request for Colombo Port Project,” Reuters, December 10, 2024, https://www.reuters.com/business/finance/adani-ports-withdraws-dfc-funding-request-colombo-port-project-2024-12-10/.

[43] Ishara Gamage, “India’s Adani Group Plans Logistics Centre in Colombo Port,” Ceylon Today, February 29, 2024, https://ceylontoday.lk/2024/02/29/indias-adani-group-plans-logistics-centre-in-colombo-port/.

[44] Siddhant Sibbal, “In a Strategic Move, India’s MDL to Acquire Majority Stake in Colombo Dockyard,” WION, June 27, 2025, https://www.wionews.com/india-news/in-a-strategic-move-india-s-mdl-to-acquire-majority-stake-in-colombo-dockyard-1751039167708.

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[46] “Chennai-Sri Lanka Direct Train: 60 Years Later, Can Pamban Bridge Bring a Lost Route Back?” Ada Derana, April 10, 2025, http://www.adaderana.lk/news.php?nid=107322.

[47] Faizer Shaheid and Buddhika Samaraweera, “Govt.’s Conditional Stance on ETCA,” The Morning, January 12, 2025, https://www.themorning.lk/articles/fQlB6zAy4ew7hhCWdKDZ.

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[51] Shaheid and Samaraweera, “Govt.’s Conditional Stance on ETCA”

[52] “Sri Lanka to Open Airport Services to Private Sector,” Economy Next, April 16, 2023, https://economynext.com/sri-lanka-to-open-airport-services-to-private-sector-118178/.

[53] Ministry of External Affairs, Government of India, July 21, 2023, https://www.mea.gov.in/bilateral-documents.htm?dtl/36864/Promoting+Connectivity+Catalysing+Prosperity+IndiaSri+Lanka+Economic+Partnership+Vision.

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[55] Chulanee Attanayake, “Mattala: Attracting Business into a Lonely Airport,” ISAS Working Paper No. 314, Institute of South Asian Studies, December 2018, https://www.isas.nus.edu.sg/wp-content/uploads/2018/12/ISAS-Working-Papers-No-314.pdf.

[56] David Brewster, “Why India is Buying the World’s Emptiest Airport,” The Interpreter, July 14, 2018, https://www.lowyinstitute.org/the-interpreter/why-india-buying-world-s-emptiest-airport.

[57] Imsha Iqbal, “EOI Called for Jaffna Airport Expansion,” The Morning, February 28, 2024, https://www.themorning.lk/articles/20sQ9C4saRvXgpVxAWW6.

[58] Attanayake, “Mattala: Attracting Business into a Lonely Airport”

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[62] Shenal Fernando, “Jaffna International Airport: Biz Plan for Expansion Due in Eight Months,” The Morning, August 24, 2025, https://www.themorning.lk/articles/GB1PxB6R6s81fTJMy2xC; “Jaffna International Airport to Receive Rs. 600 Million Terminal,” Hiru News, August 18, 2025, https://hirunews.lk/en/business/415146/jaffna-international-airport-to-receive-rs-600-million-terminal.

[63] Shihar Aneez, “Sri Lanka to Hold Key Security Units in Airport Deal with India-Russia Consortium,” Economy Next, July 29, 2024, https://economynext.com/sri-lanka-to-hold-key-security-units-in-airport-deal-with-india-russia-consortium-174245/.

[64] “Sri Lanka Leases Hambantota Airport Built with Chinese Loans to Indian, Russian Firms,” Business Today, April 27, 2024, https://www.businesstoday.in/world/story/sri-lanka-leases-hambantota-airport-built-with-chinese-loans-to-indian-russian-firms-427199-2024-04-27.

[65] Darshana Sanjeewa Balasuriya, “Sri Lanka to Hand Management of China-Built Airport to India, Russia Companies,” Daily Mirror, April 26, 2024, https://www.dailymirror.lk/breaking-news/Sri-Lanka-to-hand-management-of-China-built-airport-to-India-Russia-companies/108-281435.

[66] Aneez, “Sri Lanka to Hold Key Security Units in Airport Deal with India-Russia Consortium”

[67] Shihar Aneez, “Sri Lanka to go ahead with Russian firm to operate Mattala airport despite US advice,” Economy Next, July 3, 2024, https://economynext.com/sri-lanka-to-go-ahead-with-russian-firm-to-operate-mattala-airport-despite-us-advice-170741/.

[68] Shihar Aneez, “US sanctions Indian firm involved in deal with Sri Lanka’s Mattala airport,” Economy Next, November 7, 2024, https://economynext.com/us-sanctions-indian-firm-involved-in-deal-with-sri-lankas-mattala-airport-186347/.

[69] “Sri Lanka gets ‘greenlight’ to set up aircraft repair centre at Mattala: Minister,” Economy Next, March 13, 2025, https://economynext.com/sri-lanka-gets-greenlight-to-set-up-aircraft-repair-centre-at-mattala-minister-209879/.

[70] “Govt reveals plans for Mattala Airport,” Newswire, July 11, 2025, https://www.newswire.lk/2025/07/11/govt-reveals-plans-for-mattala-airport/.

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[73] Meera Srinivasan, “Sri Lanka’s Supreme Court suspends controversial visa process involving Indian company,” The Hindu, August 3, 2024, https://www.thehindu.com/news/international/sri-lanka-supreme-court-suspends-controversial-visa-process-involving-indian-company/article68480584.ece; “Adani Group could run three Sri Lankan airports, including Bandarnaike International: Minister,” Hindustan Times, February 10, 2024, https://www.hindustantimes.com/business/adani-group-could-run-three-sri-lankan-airports-including-colombo-bandarnaike-minister-101707552712272.html; Sumudu Chamara, “‘3 Airports including BIA mgt. to Adani, a lie,’” The Morning, February 23, 2024, https://www.themorning.lk/articles/6fgfml3FyfGf8pvFxf4k.

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[76] Ministry of Tourism, India Tourism Statistics 2023, by Government of India, New Delhi (2023) https://tourism.gov.in/sites/default/files/2024-02/India%20Tourism%20Statistics%202023-English.pdf.

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[78] Meera Srinivasan, “Sri Lanka clears Chinese energy project, 50 km off Tamil Nadu,” The Hindu, February 09, 2021, https://www.thehindu.com/news/international/sri-lanka-clears-chinese-energy-project-50-km-off-tamil-nadu/article33785609.ece.

[79] Suri, “Trincomalee: India’s Call”

[80] “Sri Lanka-India Power Link Moves Ahead with Key Grid Connectivity Plans,” Lanka News Web, July 06, 2025, https://lankanewsweb.net/archives/97092/sri-lanka-india-power-link-moves-ahead-with-key-grid-connectivity-plans/.

[81] “Indian PM to launch Sampur power project 19 years after signed,” Economy Next, March 29, 2025 https://economynext.com/indian-pm-to-launch-sampur-power-project-19-years-after-signed-212355/.

[82] David Brewster, “India’s takeover of the Trincomalee Oil Tank Farm will help build energy interdependence with Sri Lanka,” The Interpreter, April 16, 2024, https://www.lowyinstitute.org/the-interpreter/india-s-takeover-trincomalee-oil-tank-farm-will-help-build-energy-interdependence; Meera Srinivasan, “India inks deal with Sri Lanka to develop Trincomalee oil tank farm,” The Hindu, January 07, 2022, https://www.thehindu.com/news/international/india-inks-deal-with-sri-lanka-to-develop-trincomalee-oil-tank-farm/article38162574.ece.

[83] Brewster, “India’s takeover of the Trincomalee Oil Tank Farm will help build energy interdependence with Sri Lanka”

[84] “Sri Lanka will expedite Indian projects: President,” Economy Next, June 22, 2024, https://economynext.com/sri-lanka-will-expedite-indian-projects-president-169028/.

[85] P K Balachandran, “India denies talks are on to take over development of Sri Lanka's Trincomalee port,” The New Indian Express, January 21, 2017, https://www.newindianexpress.com/world/2017/Jan/20/india-denies-talks-are-on-to-take-over-development-of-sri-lankas-trincomalee-port-1561714.html.

[86] “Minister denies agreement on Indian oil pipelines in Sri Lanka,” Ada Derana, December 20, 2024, http://www.adaderana.lk/news.php?nid=104377.

[87] Narendra Modi, “PM Modi and President Dissanayake at the joint press meet in Colombo, Sri Lanka,” YouTube video, April 05, 2025, https://www.youtube.com/watch?v=WqjI0paz5IY.

[88] “Infra, connectivity to be key focus during Modi’s Sri Lanka visit – report,” Ada Derana, March 27, 2025, http://www.adaderana.lk/news.php?nid=106922.

[89] “Sri Lanka-India Power Link Moves Ahead with Key Grid Connectivity Plans”

[90] “Sri Lanka, India working to link power grids via $1.2bn undersea transmission line,” Ada Derana, March 5, 2024, https://www.adaderana.lk/news.php?nid=97754.

[91] Rezaul Laskar, “India, Sri Lanka ink 10 agreements including in defence, power, energy,” Hindustan Times, April 5, 2025, https://www.hindustantimes.com/india-news/india-sri-lanka-ink-10-agreements-including-in-defence-power-energy-101743842882186.html.

[92] “Sri Lanka will expedite Indian projects: President”

[93] “Sri Lanka negotiating PPA for J/V solar power plant with India’s NTPS,” Economy Next, March 17, 2024, https://economynext.com/sri-lanka-negotiating-ppa-for-j-v-solar-power-plant-with-indias-ntps-154920/.

[94] Rathindra Kuruwita, “The India Factor in Sri Lanka’s Renewable Energy Sector,” The Diplomat, March 07, 2024, https://thediplomat.com/2024/03/the-india-factor-in-sri-lankas-renewable-energy-sector/.

“EAM Jaishankar to visit Sri Lanka on June 20; will discuss bilateral partnership, connectivity projects,” India News Network, June 19, 2024, https://www.indianewsnetwork.com/en/20240619/eam-jaishankar-to-visit-sri-lanka-on-june-20-will-discuss-bilateral-partnership-connectivity-projects.

[95] “Sri Lanka & India to jointly establish 120 MW Solar Power Plants in Sampur,” Newswire, February 20, 2025, https://www.newswire.lk/2025/02/20/sri-lanka-india-to-jointly-establish-120-mw-solar-power-plants-in-sampur/.

[96] “Sri Lanka India Sampur solar power at 5.97 US cents: President,” Economy Next, January 20, 2025, https://economynext.com/sri-lanka-india-sampur-solar-power-at-5-97-us-cents-president-200304/.

[97] Sulochana Ramiah Mohan, “Hybrid energy project begins on three Northern islands,” Ceylon Today, May 31, 2025, https://ceylontoday.lk/2025/05/31/hybrid-energy-project-begins-on-three-northern-islands/.

[98] High Commission of India in Sri Lanka, Government of India, https://www.hcicolombo.gov.in/section/press-releases/handing-over-of-first-payment-for-hybrid-power-projects-in-delft-nainativu-and-analaitivu-islands/.

[99] Suhasini Haidar, “Adani project is like a government-to-government deal, says Sri Lankan FM: Sri Lankan Foreign Minister Ali Sabry,” The Hindu, March 06, 2023, https://www.thehindu.com/news/international/adani-investment-has-come-in-we-are-not-panicking-about-projects-sri-lankan-foreign-minister-ali-sabry/article66583333.ece.

[100] “Adani wind power project sparks concern in Sri Lanka,” Newswire, March 16, 2024, https://www.newswire.lk/2024/03/16/adani-wind-power-project-sparks-concern-in-sri-lanka/.

[101] “Adani’s ‘Power’ in Sri Lanka,” The Island, November 13, 2024, https://island.lk/adanis-power-in-sri-lanka/.

[102] “Adani Group withdraws from Sri Lanka wind project, citing delays,” Ada Derana, February 13, 2025, https://www.adaderana.lk/news.php?nid=105764.

[103] Interaction with Economics Team of Verite Research, Sri Lanka; inferences from interaction with Sri Lankan civil society and think tanks during a field visit in September 2024.