Sri Lanka stared into the abyss in 2022. An economic crisis, born from mismanagement and external shocks, brought the island nation to its knees, culminating in a sovereign default that sent shockwaves through the region. Amidst this turmoil, as reserves dwindled and essentials vanished, one neighbour stepped decisively into the breach: India.

Prime Minister Narendra Modi is visiting Sri Lanka from April 4-6. The trip represents a critical juncture in India’s sustained, complex engagement—a strategic “Lanka Play" aimed at stabilising its neighbour while securing its interests in an increasingly volatile Indian Ocean region.

When Sri Lanka faced its darkest economic hour, the response from New Delhi was swift and substantial. Unlike the rest of the International support, India did not just offer a token of assistance, it was a lifeline. India extended close to $4 billion in crucial support through multiple channels, including currency swaps via the Reserve Bank of India (RBI), deferrals of trade liabilities under the Asian Clearing Union (ACU), and vital credit lines for importing fuel, food, and medicines facilitated by the EXIM Bank of India and the State Bank of India.

This emergency financing, disbursed rapidly during the critical January-April 2022 period, covered over 80 per cent of Sri Lanka’s merchandise imports from India that year, effectively preventing a total collapse and enabling the country to meet immediate needs and avoid defaulting on multilateral creditors—a move that would have barred access to crucial institutional funding.

Foreign Secretary Vikram Misri rightly emphasised a week ago that this assistance flowed from India’s “Neighborhood First" policy, framing Sri Lanka as an integral partner. India acted as the quintessential first responder, providing nearly $4.5 billion in total assistance during 2022-23, dwarfing initial contributions from other international actors and demonstrating a capacity and willingness to shoulder regional burdens.

This intervention provided Colombo with essential breathing room, stabilised foreign reserves, and allowed for the continued import of........

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