Colonel
R Hariharan | 30-04-2017 |
Courtesy: South Asia Security Trends, May
2017 issue | www.security-risks.com
Reading the Sri Lanka-India MoU
Prime
Minister Ranil Wickremesinghe’s visit to New Delhi from April 25 to 29, 2017
and the Memorandum of Understanding (MoU) the two countries signed hogged the
limelight of events during the month. Though foreign affairs analyst and
unabashed Rajapakshaphile Dr Dayan Jayatilleka, given to hyperbole, called it “Ranil’s
worst betrayal: Giving Trincomalee to India” even before the visit, there is a
broader context both for the visit and the MoU.
As India’s
Ministry of External Affairs spokesperson described, it was a “working visit”
to strengthen close relations existing between the two countries. For Sri
Lanka, it meant not only India showing its readiness to under write development
projects, but also its affirmation of the Sirisena-Wickremesinghe’s course
corrections to the relations. For India, it was a show of solidarity with Sri
Lanka, particularly when it was negotiating with the Chinese for better
concessional terms on Hambantota port and Colombo reclamation projects.
Of course,
there is an even larger international context of Indian Ocean Region (IOR)
security. Both India and the US have been increasingly concerned about the
security of IOR after China started
asserting its increasing naval muscle in the region. With China gaining a firm
foothold in Sri Lanka’s maritime infrastructure in Colombo port and Hambantota
port under its control, it has become essential for India to periodically to
share its mutual security concerns with Sri Lanka, which has close bonds with
India. This has become imperative as the IOR is likely to be the scene of
increasingly muscular assertion among naval powers, particularly China.
The MoU is
open ended except for deadlines preparatory to the finalization of
projects. As the Indian MEA spokesman said it provides a vision that
would need further discussion, when more inputs became available. He saw it as
part of India’s desire to promote its “external environment and naturally to
neighbourhood first.”
According
to the copy of the MoU carried in the Sunday Times, Colombo, its focus is
mainly on promoting projects in energy, infrastructure connectivity and port
development sectors with Indian assistance and investment in Colombo and
Trincomalee areas as well as road segments mostly in Northern Province.
Thus India would be substantially contributing to the development of industries
and infrastructure links in the North and East , which could help the regions
integration with the rest of Sri Lanka.
The
projects include a re-gasified liquid natural gas (LNG) fired 500 MW power
plant; an LNG terminal/floating storage re-gasification unit in
Kerawalapitiya near Colombo; 50 MW solar power plant at Sampur;
joint development of upper tank farm in Trincomalee, port, petroleum refinery
and other industries in Trincomalee; industrial and special economic zones at
locations to be identified; development of Mannar-Jaffna, Mannar-Trincomalee
and Dambulla-Trincomalee expressways with Indian investment; up gradation and
purchase of railway rolling stock; container terminal at Colombo port as a
joint venture and agricultural sector and livestock development.
The MoU
shows a number of features efforts of both India and Sri Lanka to improve their
project planning on a few counts. Time-bound schedule for projects is an
interesting feature to avoid time-delay that had been the bane Indian-aided
projects in Sri Lanka. The power generation projects are environment friendly,
based on LNG and solar power; perhaps the cancelling of 500MW coal fired power
plant to be built by India at Sampur, after advanced project planning, on
environmental grounds induced the decision.
Another significant feature is India and Japan joining
hands to build a floating LNG terminal, a 500MW power plant based on LNG and a
gas distribution pipeline at Kerwalpitiya. This would indicate the close
bonds developing between India and Japan, furthering their strategic
convergence in the IOR. It also has the potential for further cooperation and
coordination between India and Japan in projects in Sri Lanka.
The MoU is
yet another step in building bonds between the two countries beyond India-Sri
Lanka Free Trade Agreement (ISFTA) , which came in force in 2000. Both the
countries have been discussing a comprehensive Economic and Technical
Cooperation Agreement (ETCA) for some time now. Sri Lanka chambers of commerce
have welcomed the idea. However, the subject has become politically
sensitive as Sri Lankan professionals fear ETCA would ultimately enable India
to export services personnel to Sri Lanka, though its objective is not to open
up Sri Lanka to Indian services personnel. In view of this, India has
shown no hurry in pushing it. Perhaps India would like to wait and watch the
final shape of the China-Sri Lanka Free Trade Agreement (CSFTA), which has been
on the anvil for some time. The MoU has shown the contours of areas in
which India can build economic bonds as and when the ETCA is finalized.
Prime Minister Narendra Modi is
scheduled to visit Colombo and Kandy to attend United Nations Day of Vesak in
Sri Lanka. The three-day celebration will begin on May 12 at Colombo and
closing ceremony will be held in Kandy. However, as of now the Indian prime
minister’s visit will be strictly to attend the religious function. Other foreign dignitaries attending the
celebration include Nepali President Ms Bidya Devi Bhandari.
Col R Hariharan, a retired MI officer, served as the head of Intelligence of the Indian Peace Keeping Force from 1987 to 90. He is associated with the Chennai Centre for China Studies. E-mail: haridirect@gmail.com
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