It seems the ‘neighbourhood first’ policy is finally yielding positive results. Prime Minister Narendra Modi’s visit to Sri Lanka is the culmination of patient and pragmatic policymaking in Delhi, as well as the emergence of a young Sri Lankan President, who, like the Indian Prime Minister, is not burdened with the weight of a political family. If this visit proceeds as planned, it will benefit Delhi, but it could be even more advantageous for Colombo.

The Joint Statement was notably rich in content, addressing even the irritants lightly. But let’s first consider the context. This visit must be seen against the backdrop of India’s strong support for Sri Lanka during its financial crisis in 2022, providing $4 billion in foreign exchange support, which was more than what the International Monetary Fund offered and constituted at least one per cent of India’s own forex reserves. Additionally, there was a $400 million currency swap, measures to finance the Lines of Credit, and crucial oil provisions. This extraordinary series of actions, as noted by Foreign Minister Jaishankar, aimed to erase the bitterness of the disastrous military intervention once and for all. In essence, India emerged as a friend in need, delivering without the usual fanfare.

During this visit, India also acted as a constructive co-chair of the Official Creditors Committee, alongside Japan and France, and 17 other countries that have lent a combined $5.8 billion. Delhi has also converted around $100 million into grants and reduced interest rates. In contrast, despite a visit by Chinese Foreign Minister Wang Yi during the crisis, no significant assistance came from China. Chinese loan interests for Hambantota in 2011 were 6.5 per cent, contributing to Sri Lanka’s........

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