India–Sri Lanka, India–Maldives and the Indian Ocean Neighbourhood

Why the maritime neighbours matter

Sri Lanka and Maldives sit astride the major sea lanes of communication (SLOCs) of the Indian Ocean, through which much of the world's oil and container trade passes. Together with Mauritius and Seychelles, they are central to India's maritime security and to its SAGAR vision (Security and Growth for All in the Region, 2015), which was expanded in 2025 to MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions). China's growing presence – port investments, loans and research vessels – makes this region an arena of strategic competition.

India–Sri Lanka

Shared heritage: Buddhism spread to Sri Lanka from India; Emperor Ashoka sent his son Mahinda. The two countries have Tamil linguistic links. The Palk Strait separates them by only about 30 km at the narrowest point. The Ram Setu (Adam's Bridge) is a chain of shoals between Rameswaram and Mannar.

Key milestones:

• 1974 and 1976 maritime agreements: the island of Katchatheevu was recognised as Sri Lankan territory.
• Tamil ethnic conflict: from 1983, war between the government and the LTTE.
• The India–Sri Lanka Accord (1987) led to the 13th Amendment to Sri Lanka's constitution, which created provincial councils and devolved power, and to the deployment of the Indian Peace Keeping Force (IPKF, 1987–90). The IPKF suffered heavy losses and withdrew. Rajiv Gandhi was assassinated by the LTTE in 1991.
• End of the civil war (2009): India supported reconstruction, including the Indian Housing Project of about 50,000 houses in the Northern and Eastern provinces.
• India–Sri Lanka Free Trade Agreement (signed 1998, effective 2000): South Asia's first bilateral FTA. Negotiations on an Economic and Technology Cooperation Agreement have been underway.

2022 economic crisis: Sri Lanka defaulted on its debt amid a foreign exchange crisis. India extended about US$4 billion of assistance – credit lines for fuel, food and medicines, currency swaps, and loan deferrals – the largest bilateral support of any country. India was also among the first creditors to give financing assurances for Sri Lanka's IMF programme. This restored much goodwill.

Issues:

• Fishermen: Indian fishermen from Tamil Nadu cross the International Maritime Boundary Line and are arrested. Bottom trawling damages the Sri Lankan fishing grounds. Katchatheevu is raised periodically in Indian domestic politics.
• Chinese presence: Hambantota port was leased to a Chinese company for 99 years (2017) after Sri Lanka could not service its loans, an example often cited in "debt-trap" debates. The Colombo Port City project and visits by Chinese research and survey vessels have also caused concern. Sri Lanka introduced an SOP for foreign research vessels in 2024.
• Tamil question: India supports full implementation of the 13th Amendment and reconciliation.

Cooperation projects:

• The Colombo West Container Terminal (Adani with Sri Lankan partners).
• The Trincomalee oil tank farm and an energy hub.
• The Sampur solar project.
• A UPI linkage.
• The Nagapattinam–Kankesanthurai ferry (2023).
• A defence cooperation MoU (2025).
• The Unique Digital Identity project.

India–Maldives

Maldives is an archipelago of about 1,200 coral islands located 70 nautical miles from Minicoy (Lakshadweep).

History of support:

• Operation Cactus (1988): Indian forces foiled a coup attempt against President Gayoom.
• Tsunami relief (2004).
• Operation Neer (2014): drinking water during a crisis in Male.
• COVID-19 vaccines and supplies.

Projects:

• The Greater Malé Connectivity Project (6.7 km of bridges and causeways), the largest infrastructure project in Maldives, funded by India.
• Hanimaadhoo airport.
• Uthuru Thila Falhu (UTF) harbour for the coast guard.
• Water and sanitation on 34 islands.
• High-impact community development projects.

Tensions: Maldivian politics swings between "India First" and pro-China positions.

• Under President Yameen (2013–18), Maldives signed an FTA with China and joined the BRI; the "India Out" campaign followed.
• President Mohamed Muizzu (elected 2023) asked India to withdraw military personnel who operated helicopters and a Dornier aircraft for humanitarian missions. They were replaced by Indian civilian technical staff in 2024. Derogatory remarks by Maldivian deputy ministers about India's PM in January 2024 led to a social media backlash and a fall in Indian tourist arrivals.
• Faced with a debt crisis, Maldives later re-engaged India. India rolled over treasury bills, agreed a currency swap (2024), and Muizzu visited India in October 2024. PM Modi visited Male in July 2025 for the 60th anniversary of Maldives' independence.

Mauritius and Seychelles (brief)

• Mauritius: about two-thirds of its population is of Indian origin. It is a major source of FDI into India (the tax treaty was amended in 2016).
• India built facilities on Agaléga island: an airstrip and a jetty, inaugurated in 2024.
• India was Mauritius's chief guest partner at its National Day celebrations in 2025.
• The UK–Mauritius agreement (2025) on the Chagos Islands transfers sovereignty to Mauritius while the UK and US keep Diego Garcia under a long lease. India supported Mauritius's decolonisation claim.
• Seychelles: a plan for India to develop facilities on Assumption Island (2015, revised 2018) was not ratified by Seychelles' parliament. Cooperation continues on coastal surveillance radar and the coast guard.

India's Indian Ocean instruments:

• The Information Fusion Centre–Indian Ocean Region (IFC-IOR, Gurugram, 2018).
• The Colombo Security Conclave: India, Sri Lanka, Maldives and Mauritius, with Bangladesh joining later.
• Hydrography surveys.
• White shipping agreements.
• Acting as first responder in disasters (HADR).

Practice: Mains question

*"India's role as a 'first responder' and development partner is key to countering China's influence in the Indian Ocean island states." Discuss with reference to Sri Lanka and Maldives. (250 words)*

Debt, China and the "debt-trap" debate

The Hambantota case is often cited as evidence of Chinese "debt-trap diplomacy". Scholars dispute this. They point out that Sri Lanka's debt crisis was driven mainly by international sovereign bonds and by domestic fiscal decisions (tax cuts in 2019, a sudden ban on chemical fertilisers in 2021), not just by Chinese loans. The lease of Hambantota was used to raise foreign exchange. For examinations, present both views. Chinese lending lacked transparency and created strategic leverage, but debt vulnerability also has domestic causes. The policy lesson for India is to offer transparent, demand-driven, timely financing and to focus on grants and capacity building that small states value.

India's development partnership model

India's development cooperation emphasises lines of credit (managed by the EXIM Bank), grants for community projects, training through ITEC (Indian Technical and Economic Cooperation, since 1964), and disaster assistance. Recipients appreciate that it is demand-driven and comes without political conditions. Delays in project execution are a recurring criticism, which India has tried to address by monitoring and using public sector enterprises.

Maritime security cooperation

• Coordinated patrols and exercises: SLINEX (India–Sri Lanka navies) and Dosti, a coast guard exercise begun by India and Maldives in 1991 and trilateral since Sri Lanka joined in 2012.
• Coastal surveillance radar chains in Maldives, Mauritius, Seychelles and Sri Lanka, linked to India's systems.
• Hydrographic surveys by the Indian Navy for island states. Maldives declined to renew its agreement in 2024.
• Capacity building: providing patrol vessels and aircraft, and training their security forces.

Common prelims traps

• Minicoy is separated from the Maldives by the Eight Degree Channel.
• The Nine Degree Channel separates Minicoy from the rest of Lakshadweep.
• The Ten Degree Channel separates the Andaman Islands from the Nicobar Islands.
• The Palk Strait lies between Tamil Nadu and northern Sri Lanka. The Gulf of Mannar lies south of Adam's Bridge.