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150 Words10 Marks
Q.India is an age-old friend of Sri Lanka’. Discuss India’s role in the recent crisis in Sri Lanka in light of the preceding statement.
UPSC Mains 2022•International Relations
Model Answer
View this Question In PYQ RealmSyllabus Point
- Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
Approach
- Introduction (30-40 words): Highlight the historical, civilizational ties between India and Sri Lanka and introduce the context of the recent crisis.
Body (170-180 words)
- Outline the nature of Sri Lanka's economic and political crisis in 2022.
- Detail India's multi-dimensional assistance (financial, humanitarian, infrastructural, and diplomatic).
- Discuss the strategic challenges and concerns for India.
- Conclusion (30-40 words): Reaffirm India's commitment to Sri Lanka's stability as a reliable regional partner.
Introduction
India and Sri Lanka share deep-rooted civilizational, cultural, and economic ties spanning centuries. As Sri Lanka's closest neighbor, India has consistently acted as a reliable partner, playing a pivotal role in supporting the island nation during its severe economic and political crisis in 2022 under its 'Neighbourhood First' policy.
Body
1. Overview of Sri Lanka's Recent Crisis
- Foreign Exchange Depletion: Sri Lanka faced a near-total exhaustion of foreign reserves, leading to an inability to import essential commodities.
- Sovereign Debt Default: The country defaulted on its external debt obligations, triggering a severe financial shutdown.
- Hyperinflation and Shortages: Acute shortages of food, fuel, and medicines led to widespread public protests and social unrest.
- Political Instability: The economic collapse triggered a major political crisis, culminating in the resignation of President Gotabaya Rajapaksa.
2. India's Role in Assisting Sri Lanka
- Financial and Economic Assistance: India provided over $4 billion in financial aid, including credit lines for essential goods, currency swap arrangements, and loan deferments. India also actively lobbied the IMF to expedite a bailout package for Colombo.
- Energy and Food Security Support: India sent emergency shipments of petroleum, LPG, rice, pulses, and life-saving medicines to alleviate immediate humanitarian distress.
- Infrastructure and Trade Cooperation: India supported long-term economic recovery by investing in renewable energy projects, port development, and railway modernization, while facilitating trade agreements to boost Sri Lanka's exports.
- Diplomatic and Security Engagement: India engaged with international creditors to restructure Sri Lanka's debt and strengthened maritime security cooperation to maintain stability in the Indian Ocean.
3. Challenges and Strategic Concerns
- China's Debt-Trap Diplomacy: Sri Lanka's economic vulnerability was exacerbated by high-interest Chinese loans for non-viable projects like the Hambantota Port.
- Political Uncertainty: Domestic political shifts in Sri Lanka can impact the implementation of bilateral agreements and Indian investments.
- Regional Security: India must continuously monitor and counter Chinese strategic and military footprint in Sri Lanka to safeguard its maritime interests.
Conclusion
India's swift, unconditional assistance during Sri Lanka's crisis has reaffirmed its status as a trusted, benign regional leader. Moving forward, sustained economic integration and strategic cooperation will be key to ensuring a stable, prosperous, and secure Sri Lanka, which is vital for India's own national security.
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