Sep 12, 2010

India raises its sights on Sri Lanka

As Tamil Nadu is gearing up for legislative elections, both the ruling Dravida Munnetra Kazagham (DMK) and its national ally the Congress Party have focused on Indian aid to Sri Lanka for the Tamils affected in the war torn Northern Province. The issue had figured in interaction between leaders of both parties at the highest level. And Tamil Nadu chief minister Karunanidhi expressing concern at the proper utilisation of the Indian aid had requested the prime minister for despatching a representative to make a first hand assessment.

Towards the end of the month, the Indian government despatched Foreign Secretary Nirupama Rao on a visit to Vavuniya, Kilinochchi, and Jaffna areas for a first hand assessment of Indian assistance to the affected population.  She met a number of displaced persons awaiting resettlement as well as those already resettled. She also visited sites of de-mining operations carried out by Indian agencies.

The visit has brought into sharp focus implementation of resettlement for which Prime Minister Dr Manmohan Singh had announced Rs 500-crore humanitarian assistance last May. Ms Rao also focused on India’s promise to construct 50,000 houses for the displaced population made during the visit of President Rajapaksa to India in June 2010. She said the houses would be constructed with local participation to give a fillip for their employment.

Both New Delhi and Colombo took another significant step to boost bilateral relations when they signed an agreement to establish Indian consulates general in Jaffna and Hambantota. This was agreed upon during Rajapaksa’s New Delhi visit. Sri Lanka is also likely to establish yet another consulate in India, in addition to the ones now in Chennai and Mumbai.

These Indian moves are significant in the face of sustained high profile interest of China in Sri Lanka for sometime now. On August 15, the President participated in the ceremonial filling of sea water in the harbour basin of the Chinese aided Hambantota Port under construction. This marked the completion of first phase for which the Chinese had given a loan of $ 425 million. Sri Lanka is negotiating for a further $ 800 million loan for the second phase of the $ 1.5 billion dollar project. When completed Hambantota will have bunkering facility and a tank farm project with a capacity of 80,000 metric tonnes. The port will begin handling ships from November. It is one of the four ports being built or upgraded as part of Rajapaksa's plan to boost the economy. They will significantly change the strategic profile of Sri Lanka in Indian Ocean security, apart from impacting trade and commerce. 

SEP 2010