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Showing posts with label bilateral. Show all posts
Showing posts with label bilateral. Show all posts

Saturday, September 20, 2025

CHINA – SRI LANKA RELATIONS: A New Chapter Opened in 2025

By Tharushika Peelikumbura and Yohan Soyza

In September 2024, Sri Lankans experienced a significant political shift in the country. 76 years of governance led by the United National Party, the Sri Lanka Freedom Party and its alliance, and later the Sri Lanka Podujana Peramuna, were rejected by the public. The National People’s Power won the presidential and parliamentary elections within two months. With that a new era of Sri Lankan politics began, and this article attempts to focus on a new era in China-Sri Lanka bilateral relations.

Newly elected Sri Lankan President Anura Kumara Dissanayake paid a four-day state visit to the People’s Republic of China from 14 to 17 January 2025. The Minister of Foreign Affairs, Foreign Employment, and Tourism, Vijitha Herath, the Minister of Transport, Highways, Ports, and Civil Aviation, Bimal Rathnayake and the Director General of Government Information, H. S. K. J. Bandara were seen joining the visit with Dissanayake. The four-day state visit included meetings with Chinese President Xi Jinping, Premier Li Qiang and Chairman of the Standing Committee of the National People’s Congress of China Zhao Leji and others. The visit was significant for the relations between the two countries as the Sri Lankan delegation met high-ranking members from the Chinese Communist Party, signaling increased cooperation in the future.

Key Diplomatic Objectives

1. Reaffirmation of the One China Policy

During his visit to the People’s Republic of China (PRC), President Dissanayake reaffirmed Sri Lanka’s continuous support for the One China Policy, recognizing the PRC as the only legitimate China that exists. He also assured his commitment not to allow Sri Lanka’s territory to be used for any anti-Chinese activities. This stance is aligned with Sri Lanka’s strong diplomatic relations with China since the 1950s (Kuruwita, 2025), and stronger than ever before since President Mahinda Rajapaksa’s time in the office from 2005 to 2015.

2. Strengthening Economic and Strategic Ties

This state visit aimed to strengthen strategic and economic ties between the two nations. Several agreements were signed to advance the Belt and Road Initiative (BRI) projects, strengthen trade and investment, and promote cooperation in areas such as education, climate action and agriculture. China also pledged to support Sri Lanka’s debt restructuring efforts and encourage investments in areas such as green development and logistics (Kuruwita, 2025; Xinhua, 2025).

Both parties emphasized the importance of the cultural ties as mentioned in the joint statement between China and Sri Lanka, released in January 2025. Education and research were seen as significant opportunities to enhance cultural ties, as both parties promised to encourage more exchanges of students, teachers and researchers. China stated they welcome committed Sri Lankan students to pursue higher studies in China by providing them government scholarships, which will be a great chance for Sri Lankan students who wish to pursue their higher studies in a foreign university. China will also work with Sri Lanka to implement the Luban Workshop to create more professionals through vocational and technical training in Sri Lanka (Joint Statement between China and Sri Lanka, 2025)

3. Positioning within Global South multilateral frameworks

China and Sri Lanka emphasized global development initiatives and multilateralism. Both countries agreed to support each other by strengthening coordination and cooperation within large multilateral bodies like the United Nations Organization (UNO), and also to give focus on global issues such as climate change (Xinhua, 2025). Sri Lanka also seeks to leverage China’s BRI for development purposes and navigate risks in debt and regional power dynamics. The BRI is a great opportunity for Sri Lanka to enhance its network and connect with other partnering countries of the BRI.

Strategic Cooperation Areas

1. Development in Infrastructure

A major area of cooperation between the two countries includes infrastructure development, which is mainly led by the BRI. Notable projects in Sri Lanka include the Colombo Port City project and Hambantota Port. These projects can play a crucial role in Sri Lanka’s economic development and turn the island nation into a regional hub of business, transportation and maritime logistics if managed properly (Kuruwita, 2025; Xinhua, 2025). Table 1 provides an overview of the current ongoing Chinese projects in Sri Lanka.

2. BRI Project Advancement

The state visit also highlighted the importance of continuing BRI projects in Sri Lanka. China promised strong support for Sri Lanka’s economic development, sovereignty, and independence. Both countries also signed 15 new agreements covering areas including economic development, education, media, culture, infrastructure, agriculture, digital economy, and marine economy. President Xi emphasized the importance of fostering new highlights and high-quality cooperation within the BRI while building a community of shared future with Sri Lanka. In response, Sri Lanka pledged to further deepen regional connectivity and welcome more Chinese investments. This collaboration also includes infrastructure development and other forms of multilateral cooperation addressing climate change, demonstrating the expanding scope and depth of bilateral relations (Desheng, 2025).

3. Investment in Maritime Infrastructure

Sri Lanka and China have multiple agreements on developing maritime infrastructure under the BRI projects. These projects include Hambantota International Port (HPI), aiming to make Sri Lanka a major maritime hub in the Indian Ocean Region by providing services such as port, energy, marine and port investment (Hambantota International Port Group, n.d.). The project also aims to create job opportunities that are estimated at around 50,000. However, since 2017, Sri Lanka has leased the port for 99 years to China Merchants Ports Holding Company (CMPort) in a debt-for-equity swap deal. Therefore, Sri Lankan decision-makers should work carefully and maintain high standards to maximize the benefits currently earning.

The Colombo Port City Project is another key project located on reclaimed land from the sea. The project is handled by the China Harbour Engineering Company (CHEC) (CHEC Port City Colombo (Pvt) Ltd - Sri Lanka, n.d.). The China Merchants Ports Holding Company (CMPH) operates the Colombo International Container Terminals (CICT) as a joint venture company with the Sri Lanka Port Authority (SLPA). The CICT is the only deep-water port in South Asia at the moment, and they also aim to increase the capacity of the terminal and manage the container traffic (Details Business Areas, 2018).

4. Economic Collaboration

This includes increasing trade and investment, promoting agricultural cooperation, and developing digital economy partnerships, as it is one of the fastest-developing sectors globally, contributing over 15% to global GDP (Wignaraja and De Zylva, 2018). China has also agreed to assist Sri Lanka in debt restructuring, education, tourism development, logistics and green development (Kuruwita, 2025). China is also focusing on a free trade agreement (FTA) with Sri Lanka, as they already reached one recently with the Maldives (Shivamurthy, 2025).

5. $3.7 billion Sinopec Oil Refinery Project in Hambantota

As a major point of President Dissanayake’s 2025 visit to China, both nations agreed to a $3.7 billion oil refinery project in Hambantota, Sri Lanka. Sinopec will lead this project as decided after a bidding process. This step indicates a shift towards partnerships based on investment rather than financial loans (Moramudali and Chen, 2025).

6. Renewal of Currency Swap Agreement

During the state visit two nations agreed on a currency swap renewal. This is a pivotal point of Sri Lanka’s debt restructuring and economic stabilizing process, and it will also enhance economic cooperation between the two old friends (Kuruwita, 2025).

7. Expanding Trade and Investment

Both countries are highly focused on expanding trade and investment to provide a more friendly business atmosphere for Chinese enterprises in Sri Lanka. Digital transformation, green development, and logistics are the main aspects to be focused on (Kuruwita, 2025; Xinhua, 2025)

Table 1 above indicates that China’s main focus on infrastructure projects in Sri Lanka was mainly on roads, airports, seaports, energy, the telecommunication sector and water supply projects. By investing in such infrastructure projects, China created interdependencies and leveraged them significantly. Sri Lanka, as a strategic point in the Indian Ocean, could be pivotal for China to ensure its regional power balance in South Asia. But during the civil war times, China emerged as a major donor and development partner (Shivamurthy, 2025), proving China’s caring role for Global South partners. The authors assume that providing development assistance is not just a strategic step, it is also a significant priority of uplifting the global south partners while developing itself, as China is doing. If the public could understand this with an open mind, this might be seen as a positive opportunity to develop the country.

What is important is that the Sri Lankan policymakers need to carefully manage Chinese development loans to gain the maximum benefits. In this case, transparency is very important as the government officials are responsible for every decision they take on behalf of the public, and the decisions need to be transparent to the public. Evaluating and reporting each project is also crucial as they can be used to plan future projects carefully.

Geopolitical Context

As President Anura Kumara Dissanayake sets out on a strategic partnership with China, the geopolitical context surrounding this initiative cannot be overlooked. The Indian Ocean remains significant for international relations, and Sri Lanka's geographical position makes it a critical player in the balance of power among regional powers. Sri Lanka must therefore navigate its aspirations cautiously, serving both its national interests and the demands of powerful neighbouring countries.

1. Balancing Relations with Regional Powers

By reaffirming its ties with China, Sri Lanka finds itself seeking a delicate balance between India and China, two strong neighbours. Sri Lankan leadership often emphasizes the need for a non-aligned foreign policy, which allows it to engage with both nations without compromising its sovereignty. A diplomatic quote that describes this approach is from Dissanayake himself in which he notes that "We thrive best when our partnerships create opportunities for all parties involved." (Deccan Herald, 2025).

2. Strategic Positioning in the Indian Ocean

The Indian Ocean is becoming increasingly significant for trade routes and military presence. Sri Lanka's decision to strengthen ties with China under the Belt and Road Initiative (BRI) will likely enhance its strategic location in the region. China’s investments in maritime infrastructure aim to secure its maritime silk route, while Sri Lanka benefits from development and trade opportunities (Ministry of Foreign Affairs of China, 2025). The growth in maritime infrastructure could lead to increased ship traffic through the Colombo harbour, thereby significantly boosting the Sri Lankan economy (Global Times, 2025).

3. Diplomatic Support in International Forums

In the face of global challenges, Sri Lanka's collaboration with China also opens avenues for diplomatic backing in international forums. China's weight in the United Nations and other multilateral organizations provides an opportunity for Sri Lanka to express its interests more clearly (Sunday Times, 2021). This collaboration may come in the form of backing during discussions related to climate change, economic development, and regional security matters, aligning with China's global objectives while benefiting Sri Lanka’s international standing.

Recommended Policy Actions

For Sri Lanka to fully gain the benefits of its deepening relationship with China, several policy actions have been highlighted by scholars and policy institutes. Firstly, diversifying economic partnerships is essential. While Chinese collaborations offer significant opportunities, overdependence poses long-term risks. Strengthening ties with ASEAN countries, the European Union, and India can enhance economic resilience and geopolitical balance (Observer Research Foundation, 2025). Secondly, leveraging Chinese investments strategically can catalyze broader development. Beyond infrastructure, Sri Lanka can use these investments to expand sectors like energy, technology, and manufacturing, provided the projects are managed with transparency and long-term sustainability in mind (Global Times, 2025). Thirdly, maintaining diplomatic flexibility is crucial. A dynamic foreign policy that balances relations with both China and India, while promoting regional multilateralism, can help Sri Lanka navigate shifting geopolitical dynamics (Gateway House, 2025).

Amidst these high-level strategies, several modest yet impactful actions remain underutilized. One such initiative is the formation of an independent Foreign Investment Impact Assessment Taskforce, including members from civil society, academia, and business, to review and publicly brief on major bilateral projects, thereby increasing transparency and public trust. Additionally, bilingual digital dashboards that track project progress, financial flows, and social outcomes could facilitate data-driven adjustments and citizen engagement. The government could also embed policy nudges into contracts, such as local hiring quotas, incentives for technology transfer, and environmental safeguards, all achievable without extensive legislative overhaul. Finally, introducing foreign policy literacy modules in secondary education would help cultivate a more informed and globally aware generation. These grassroots-oriented actions are low-cost, culturally resonant, and politically feasible, yet they often remain sidelined in favor of grand diplomatic visions.

Potential Challenges

While the prospects of deepening relations with China appear promising, several well-documented challenges must be carefully managed. First, navigating regional power dynamics is crucial, as tensions between China and India over territorial disputes continue to escalate. Sri Lanka must tread carefully to avoid being drawn into broader geopolitical rivalries (Foreign Policy, 2024). Second, ensuring balanced international relations is vital. Strengthening ties with China should not come at the expense of alienating other key international partners, and a nuanced foreign policy is required to maintain this equilibrium (Deccan Herald, 2025). Third, the issue of maintaining economic sovereignty remains pressing. The influx of Chinese investments, while beneficial in the short term, may compromise Sri Lanka’s long-term control over strategic sectors unless protective mechanisms are in place (Chatham House, 2020).

Beyond these widely acknowledged strategic concerns, Sri Lanka also faces a set of more localized, systemic challenges that could quietly erode the benefits of foreign engagement. Entrenched bureaucratic inefficiencies often stall the implementation of large-scale agreements, regardless of high-level diplomatic progress. Additionally, the politicization of foreign investments, where projects become mired in domestic party politics, can cause mismanagement, public opposition, or abandonment. Another underappreciated challenge is the limited institutional capacity to enforce environmental, labor, and transparency standards in megaprojects funded by foreign entities. This gap can lead to exploitation, unequal benefits, and environmental harm. Furthermore, low levels of public awareness regarding the long-term implications of international partnerships hinder civic engagement and accountability. If left unaddressed, these domestic vulnerabilities risk undermining even the most strategically sound bilateral initiatives.

Conclusion

The strategic visit of President Anura Kumara Dissanayake to China marked a significant milestone in the evolution of China-Sri Lanka relations. By deepening cooperation across multiple areas, reaffirming key diplomatic objectives, and maintaining a proactive diplomatic stance, Sri Lanka is poised to enhance its standing in the regional and global arena.

The evolving partnership between Sri Lanka and China presents a landscape rich with opportunity, but not without complexity. As strategic initiatives continue to deepen bilateral ties, Sri Lanka must remain vigilant in safeguarding its economic sovereignty, institutional integrity, and regional balance. The recent political transition signals a willingness to reset foreign policy priorities, but genuine success will depend not only on high-level diplomacy but also on transparent governance, inclusive development, and civic accountability.

In this significant chapter of its international engagement, Sri Lanka has the chance to reshape its role in the Indo-Pacific and the Global South. Whether it emerges as a strategic bridge or becomes strategically bridged over will depend on how well it can balance cooperation with caution, vision with vigilance. And here’s something to think about. If foreign partnerships are designed to build the nation’s future, should the people of that nation not be more actively involved in shaping how those partnerships unfold?

References

About | Colombo International Container Terminals. (2018). Cict.lk. https://www.cict.lk/index.php/about

Chatham House. (2020). Debunking the myth of 'debt-trap diplomacy'. https://www.chathamhouse.org/2020/08/debunking-myth-debt-trap-diplomacy/4-sri-lanka-and-bri

CHEC Port City Colombo (Pvt) Ltd - Sri Lanka. (n.d.). Http://Www.colomboportcity.lk. https://www.portcitycolombo.lk/

China Merchants Ports Holding Company (CMPORT), Details_Business areas_招商局港口控股有限公司. (2018). Cmport.com.hk. https://www.cmport.com.hk/EN/business/Detail.aspx?id=10005376

Deccan Herald. (2025). Sri Lanka's balancing act with India and China. https://www.deccanherald.com/opinion/anura-kumara-dissanayake-xi-jinping-modi-sri-lanka-india-china-joint-statement-3377840

Desheng, C. (2025). China, Sri Lanka boost BRI bond. Chinadailyhk. https://www.chinadailyhk.com/hk/article/602847

Department of External Resources. (2020). Recently Signed Water Projects China Division. Erd.gov.lk. https://www.erd.gov.lk/index.php?option=com_content&view=article&id=97:recently-signed-water-projects-china-division&catid=30&Itemid=166&lang=en

Gateway House. (2025). Sri Lanka balances India and China. https://www.gatewayhouse.in/sri-lanka-balances-india-and-china

Global Times. (2025). BRI helps shore up Sri Lanka's economic resilience, development. https://www.globaltimes.cn/page/202501/1327107.shtml

Hambantota International Port Group. (n.d.). Retrieved March 28, 2025, from https://www.hipg.lk/

Joint Statement between the People’s Republic of China and The Democratic Socialist Republic of Sri Lanka_Ministry of Foreign Affairs of the People’s Republic of China. (2025). Mfa.gov.cn. https://www.mfa.gov.cn/eng/xw/zyxw/202501/t20250116_11536637.html

Kuruwita, R. (2025, January 21). Sri Lankan President Seals Several Deals in China. Thediplomat.com; The Diplomat. https://thediplomat.com/2025/01/sri-lankan-president-seals-several-deals-in-china/

Ministry of Foreign Affairs of the People's Republic of China. (2025). Joint statement between the People's Republic of China and the Democratic Socialist Republic of Sri Lanka. https://www.mfa.gov.cn/eng/xw/zyxw/202501/t20250116_11536637.html

Moramudali, U., & Chen, Y. (2025, January 15). Beyond Debt: China-Sri Lanka Economic Relations in a New Era. Thediplomat.com; The Diplomat. https://thediplomat.com/2025/01/beyond-debt-china-sri-lanka-economic-relations-in-a-new-era/

Observer Research Foundation. (2025). The benefits of economic integration between India and Sri Lanka. https://www.orfonline.org/research/the-benefits-of-economic-integration-between-india-and-sri-lanka

Shivamurthy, A. (2025, January 15). The changing nature of Chinese influence in Sri Lanka and Maldives. Orfonline.org; OBSERVER RESEARCH FOUNDATION ( ORF ). https://www.orfonline.org/expert-speak/the-changing-nature-of-chinese-influence-in-sri-lanka-and-maldives

Sunday Times. (2021). China assures continuing support to Sri Lanka at international forums. https://sundaytimes.lk/online/news-online/China-assures-continuing-support-to-Sri-Lanka-at-international-forums/2-1132305

Times of India. (2019, April 9). Sri Lanka opens new railway line built with China’s assistance. The Times of India; Times Of India. https://timesofindia.indiatimes.com/world/south-asia/sri-lanka-opens-new-railway-line-built-with-chinas-assistance/articleshow/68796380.cms

Wignaraja, G., & De Zylva, A. (2018, June 19). Is Sri Lanka missing out on Asia’s digital economy boom? (D. Anthony Perera, Ed.). South Asia@LSE; South Asia @ LSE. https://blogs.lse.ac.uk/southasia/2018/06/20/is-sri-lanka-missing-out-on-asias-digital-economy-boom/

Wignaraja, G., Panditaratne, D., Kannangara, P., & Hundlani, D. (2020). Chinese Investment and the BRI in Sri Lanka. https://www.chathamhouse.org/sites/default/files/CHHJ8010-Sri-Lanka-RP-WEB-200324.pdf

Xinhua (Ed.). (2025). Xi calls for fostering new highlights in China-Sri Lanka cooperation. Cppcc.gov.cn. http://en.cppcc.gov.cn/2025-01/16/c_1064826.htm

Thursday, April 24, 2025

INDIA - MAURITIUS RELATIONS: A Multifaceted Analysis of Bilateral Cooperation

By Nishali Ranasinghe

The 2025 visit of Indian Prime Minister Narendra Modi to Mauritius made headlines in global news. Modi received Mauritius' highest honour, the Grand Commander of the Order of the Star and Key of the Indian Ocean, suggesting a strong connection. This visit by a prime minister to another country raises questions about why the PM traveled to Mauritius, an island with little influence in world politics. Analyzing the relationship between these two countries will provide an answer to that question.

The Historic Connection

Mauritius is a subtropical island country in the Indian Ocean, just over 1,130 kilometers east of Madagascar, off the southeastern coast of Africa. Its outlying territories include Rodrigues Island and other smaller islands (The Commonwealth, n.d.). Conversely, India is a rising global power in the Asian region with more than 1.4 billion populations. Mauritius and India may not share the same status in the global arena. However, these two countries share a strong bond, rooted for ages. According to Sinha (2024), after Mauritius became an English colony in 1810, approximately 470,000 Indians were sent to Mauritius as indentured labourers between 1834 and 1920 and this significantly impacted the sugar plantations. The human cargo was carried from Bihar, Tamil Nadu, and Uttar Pradesh. The people who migrated to Mauritius embarked on their new journey in Mauritius with a new identity but retained Indian values and cultures. As a result, out of the 1.2 million population in the country, 70% are of Indian origin.

In addition, in 1901, while traveling to South Africa, Mahatma Gandhi landed in Mauritius and advised the people to educate themselves and reclaim their identity. This message stayed with them and because of it, they celebrated their national day on the day Gandhi started his Dandi March also known as the Salt March on March 12.

After becoming an independent state in 1968, Seewoosagur Ramgoolam became the first prime minister of Mauritius, and his son, Navin Ramgoolam is the current prime minister. The connection between the two countries has not been reduced but expanded in many ways. This expansion has occurred in different sectors; Defense, Military and Strategy, Economy, Technology, and Capacity Building.

a. Defense, Military and Strategic Partnership

In 1974, the two countries signed a defense agreement, making India and Mauritius strategic partners. To date, India guarantees Mauritius’ security showcasing a powerful bond. The backing of India has been evident on several occasions. In 1983, there was a rumour about a coup by the MMM (Mauritius Military Movement), and even though it never occurred, it was believed that the then PM, Indira Gandhi wanted to send Indian troops to the country. In 2024, India welcomed the UK-Mauritius agreement for Mauritian sovereignty over the Chagos archipelago, which houses a US-UK military base, and Modi reiterated India’s “firm support” for Mauritius on this issue (Parashar, 2025).

In his recent visit to Mauritius, Modi again confirmed that India will support Mauritius’ sovereignty over the Chagos Island following the statement made by US President Trump that he would support a deal between Mauritius and Great Britain over the future of the United States-United Kingdom base in the Islands. It can thus be understood how India has always been a country that supports Mauritius in protecting its sovereignty and territorial integrity proving to be a friend in need.

Additionally, the Indian Prime Minister also unveiled "Vision MAHASAGAR – Mutual and Holistic Advancement for Security and Growth Across Regions” for the Global South which vision builds upon the foundation of the earlier "Vision SAGAR" (Security and Growth for All in the Region) that encompasses principles of trade for development, capacity building for sustainable growth, and mutual security for a shared future (Laskar, 2024).

Furthermore, since 2009, the Indian Navy has been deploying ships to Mauritius bi-annually to assist in patrolling the vast EEZ of the island country. The joint patrolling focuses on preventing piracy and illegal fishing and helps reinforce maritime security in the Exclusive Economic Zone (EEZ) of Mauritius (Padmaja, 2017). As reported in Firstpost (2024), since the EEZ in Mauritius extends up to 2.3 million square kilometers and is difficult to monitor, India built an airstrip costing $250 million in Agalega Islands after signing a memorandum in 2015. The airstrip is 3km long and is suitable for Long Range Maritime Reconnaissance Anti-Submarine Warfare (LRMR-ASW) aircraft which are used for maritime surveillance and strike, electronic warfare missions, and search and rescue missions. This will ultimately assist them with their goal to combat contemporary non-traditional security threats such as piracy, drug trafficking, and terrorism.

In this manner, Mauritius has the security and defense backing from one of the rising global powers in the world. From India’s side, they are capable of protecting Mauritius as well as countering any non-traditional security threats and constructing the influence from China coming into the country.

b. Economic Partnership

Mauritius being an island nation, has grown to be a nation with significant status after its independence in 1968. Being a small state, the country mainly depends on many sectors such as tourism, manufacturing, construction, financial services, and agriculture. Due to the shared history, India has been supporting Mauritius to achieve their targeted economic goals, and is one of the major players and drivers of Mauritius’ economy.

India’s support in successfully implementing several infrastructure projects, such as India-Mauritius Metro Express Project, New Supreme Court Building, New ENT Hospital, 956 Social Housing Units, and Educational Tablets, showcases the bond between the two countries developed over time and India has overall invested $1.1 billion in Mauritian projects (Government of India, 2025).

As Singh (2023) points out, Mauritius has emerged as a significant source of foreign direct investment (FDI) in India, and with the Double Tax Avoidance Agreement (DTAA) India aims to streamline taxation, reduce complexity, and gradually eliminate tax exemptions. By enhancing the taxation framework, India aims to create a fair and conducive environment for foreign investors while promoting economic growth and investment in the country. It is apparent that this has contributed to Mauritius' emergence as a significant financial hub in the global market.

Further strengthening bilateral economic ties, the two countries have also signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). The Comprehensive Economic Cooperation and Partnership Agreement (CECPA), signed in 2021, marked India’s first trade agreement with an African country. This agreement further solidified the bilateral relationship and paved the way for increased trade between the two nations. In the fiscal year 2021-2022, the total trade between India and Mauritius amounted to $ 786.72 million, with significant growth witnessed over the past 15 years (Singh, 2023). The CECPA encompasses a wide variety of areas, including Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) Measures, Dispute Settlement, Movement of Natural Persons, Telecom, Financial services and Custom procedures.

The initiatives demonstrate the effort by both countries to foster mutually beneficial economic cooperation. They also highlight how strategic partnerships like India and Mauritius can drive sustainable economic growth in their respective nations.

c. Technology Partnership

Within the technological parameters, India assists Mauritius in many ways, especially in people-centric digitalization. India has supported the implementation of the e-judiciary system, and digitization of archives and records at the Mahatma Gandhi Institute, strengthening cooperation in the field of ICT including cyber security, Digital Public Infrastructure, and capacity building for the same, and explore the implementation of successful digital tools developed by India, such as PM Gati Shakti digital platform, as per Mauritius’ requirements.

Similarly, since 1986, the Indian Space Research Organization (ISRO), India's national space agency, has operated a satellite tracking system in Mauritius which helps India guide its missions in space. The press release by the High Commission of India, in Port Louis, Mauritius (2009), states that ‘The Government of India may assist in the training of scientists and technicians, upon request from Mauritius, at various facilities under the Department of Space in the use of remote sensing data in applications relevant to Mauritius. Moreover, the Government of India may also provide, upon request, technical assistance for the establishment of a remote sensing cell or unit in Mauritius, selection of equipment and training of staff, and operationalization of the Station, and that a Mauritian scientist shall be attached to the TTC Station.’ This exhibits Indian presence in Mauritius for a considerable period. Thus, it can be noted that both countries share a genuine connection that expands in many areas.

d. Capacity Building

Strengthening bilateral relationships between the two countries, capacity building is one aspect that both these countries focus on. Capacity building encompasses many actors. For instance, Public Service and Administration, Diplomacy, Trade and Commerce, Finance, Infrastructure, and Health.

As reported by the India News Network (2024), during the visit to India in 2024, officials from both sides discussed opportunities for collaboration, particularly focusing on enhancing the administrative capabilities of Mauritian public officers through capacity-building programs and faculty development initiatives. Moreover, out of the 8 agreements that were exchanged between Mauritius and India in the recent visit in 2025, the two countries focused on other important aspects such as diplomacy, commerce, and trade. According to the Government of Mauritius (2025), an MoU was signed between the Sushma Swaraj Institute of Foreign Service in New Delhi, India, and the Ministry of Foreign Affairs, Regional Integration and International Trade of the Republic of Mauritius, for the exchange of information on the structure and content of training program for diplomats and another MoU between the Ministry of Industry, SME and Cooperatives and the Ministry of Micro, Small and Medium Enterprises of the Republic of India was signed to develop micro, small and medium enterprises in the respective countries.

In addition, the launching of India’s Unified Payments Interface (UPI) can be considered as one of the key steps in strengthening the banking and finance systems in Mauritius and it will also create not only a connection between the two countries but also trust. This new payment infrastructure will enable customers of participating banks to make seamless and secure payments both in Mauritius and in India. RuPay cards issued in Mauritius will be accepted at ATM and Point of Sales (POS) terminals in India, and Indians will be able to make UPI QR transactions at participating merchants in Mauritius. Commenting on this new payment service, the Governor of the Bank of Mauritius, Harvesh Kumar Seegolam, stated that "the launch of the RuPay and UPI linkage between Mauritius and India marks a significant milestone in our efforts to enhance financial connectivity and promote digital transactions. This collaboration will not only facilitate seamless and secure cost-effective payments for our customers but also strengthen the economic ties between our two nations." (Bank of Mauritius, 2024)

In terms of infrastructure, India has assisted in contributing to the implementation of several development projects in Mauritius. During the recent visit to Mauritius, both leaders agreed to work towards timely delivery of 100-electric buses and the associated charging infrastructure, implement Phase II of High Impact Community Development Projects, finalize discussions on the new Parliament building on a site to be identified by Mauritius, and conclude framework understanding to implement this project with India’s grant assistance, finalize discussion on the redevelopment of the Ganga Talao Spiritual Sanctuary and conclude framework understanding to implement this project with India’s grant assistance and explore new areas of development cooperation, as per the needs and priorities of Mauritius.

Apart from the above initiatives, the two countries have collaborated in the health sector as well. As reported by the Economic Times (2024), India launched their first overseas Jan Aushadi Kendra in Mauritius. Chandna (2024) noted that the scheme is promoted as an affordable medicines scheme by the Modi government where they offer generic drugs priced 50-90% lower than their branded counterparts in the market and Mauritius has shared a list of 16 therapeutic areas based on which the stock of drugs is being prepared such as cancer, anti-diabetic, antibiotics, nervous system, urology, painkillers, antifungal drugs, and supplements.

Conclusion

The connection between India and Mauritius dates back many decades, and from the examples mentioned, we can see how these two countries have developed and expanded their ties across many sectors. Like any other relationship, the connection between these two countries encounters challenges. For instance, there is a rise in geopolitical influence in the region, and balancing the interests of superpowers like the United States of America, the United Kingdom, and China is an important and challenging task not only for Mauritius but also for India. Consequently, maritime security threats and challenges will increase due to the region's importance and the strategic location of Mauritius.

Furthermore, there is a rise in non-traditional security threats globally, such as climate change and cybersecurity threats, that could jeopardize the sovereignty and territorial integrity of both countries. Additionally, balancing ethnic engagement within Mauritius, given its significant population of Indian origin, will affect decision-making by the government of Mauritius. Such challenges will arise from rapid regional and global changes, but it is the responsibility of both countries to reach a common agreement and work toward a shared vision for the future that brings mutually beneficial outcomes for both nations.

References

Angel One. (2024, May 11). India-Mauritius sign 8 MoUs covering banking, security, trade. Retrieved from https://www.angelone.in/news/india-mauritius-sign-8-mous-covering-banking-security-trade

Bank of Mauritius. (2024, February 12). Media Release: Mauritius and India Launch RuPay and Unified Payments Interface Linkage. https://www.bom.mu/media/media-releases/media-release-mauritius-and-india-launch-rupay-and-unified-payments-interface-linkage

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Firstpost. (2024, March 1). Mauritius Inaugurates New Airstrip Made by India | Vantage with Palki Sharma. [Video]. YouTube. https://youtu.be/Xq2WlhAVgpE?si=zu0-6fhKhvnewGBh

Firstpost. (2025, March 11). PM Modi in Mauritius: Why the Island Nation is Crucial to India | Vantage with Palki Sharma. [Video]. YouTube. https://youtu.be/902Tl5MIeco?si=oCYcxgavlcfl0mpi

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Monday, February 10, 2025

FOREIGN POLICY BETWEEN LEBANON AND SRI LANKA: A Relationship shaped by Labour Migration

 

By Kalara Perera

Foreign policy, a country’s strategy and approach in managing its relations with other nations and international actors, is based on internal and external determinants. Labour migration is an external determinant that plays a significant role in shaping Sri Lanka’s foreign policy as a labour-exporting country. Sri Lanka is heavily reliant on remittances from migrant workers as a major source of foreign exchange earnings. Lebanon has been a long-term Sri Lankan labour migrant destination and her foreign policy towards Lebanon has been shaped by these ties. While Sri Lanka reaps the economic benefits of labour migration, it also has social and diplomatic consequences as it involves ensuring the wellbeing of the migrant domestic workers in their host country. Specifically, since labour migrants face severe challenges under Lebanon’s Kafala system, it limits their rights and legal protections. This article explores how Sri Lanka’s foreign policy toward Lebanon has evolved through the lens of labour migration, highlighting the opportunities and obstacles in ensuring both economic stability and migrant worker protection.

Historical context

Formal diplomatic relations between Sri Lanka and Lebanon were established in 1997. While the migration of domestic labourers take precedence in importance, Lebanon and Sri Lanka are trade partners and Sri Lankan peacekeepers are deployed in United Nations Interim Force in Lebanon (UNIFIL). Sri Lankan labour migration to Lebanon can be traced back to the 1970s with the oil boom in the gulf region, mainly in the construction field. Following the end of the first Lebanese civil war, the demand for domestic workers in Lebanon grew, creating opportunities for Sri Lankan women to migrate as domestic workers. The peak of labour migration to Lebanon was in early 2000’s and labour migration pattern to Lebanon has been inconsistent due to external factors such as the second Lebanese civil war, the 2019 economic crisis in Lebanon, Covid-19 pandemic and the 2020 Beirut explosion.

The Kafala system

Labour migrants in Lebanon, similar to the countries of the Gulf Cooperation Council (GCC) are governed by the Kafala system that has been followed by these countries since the 1950’s. The Kafala system requires each worker to be sponsored by a citizen of the host country, who is their employer. The employer is responsible for the worker’s legal status, visa and have complete agency in determining employment status. Under this system, migrant workers are not entitled to the labour rights enshrined in the labor laws in Lebanon, including those which determine their minimum wage and working hours. As a result, over the years, migrant workers have been subject to abuse under this system. It has made migrant workers extremely vulnerable to abuse as there is excessive powers given to employers and lack of protection towards migrant workers. There have been many reported instances of non-payment or delayed payment of wages, long working hours with no rest days, physical and psychological abuse and confiscation of passports by employers.

The Sri Lankan government has acknowledged these challenges faced by migrant workers and measures have been taken both on a national and international level. Locally the government has focused on minimizing the social impact due to women leaving their families behind and making the process of migrating more stringent rather than addressing the root causes of vulnerability. National-level mechanisms, such as the Family Background Report (FBR) and pre-departure training programmes, have been implemented to mitigate risks. However, these efforts have fallen short of providing comprehensive protection for migrant domestic workers. In addition, internationally there have been measures taken by labour exporting countries to address such issues.

Diplomatic Efforts and Limitations

On a diplomatic level, Sri Lanka has engaged in various efforts to address the plight of migrant domestic workers such as signing a memorandum of understanding (MoU) with Lebanon. Such agreements aim to ensure better working conditions for migrant domestic workers but the lack of enforceability of MoUs and poor implementation mechanisms limits its effectiveness. Another effort at addressing these issues is through consular support. The Sri Lankan embassy in Lebanon provides various services through the labour welfare section which include a range of regulatory, legal, and welfare activities. The repatriation efforts made through the embassy were evident during critical junctures such as the 2019economic crisis, the civil war, Covid-19 and the Beirut explosion where the embassy made arrangements for migrant domestic workers to be repatriated to Sri Lanka. The Sri Lankan embassy has also established safe houses to provide temporary shelter for abused workers. Despite these initiatives, the effectiveness of such measures remains limited due to structural barriers, including the stringent requirements of the Kafala system and resource limitations.

The Sri Lankan government has been unable to strongly advocate for the rights of Migrant Domestic Workers because of its over-reliance on foreign remittances. This dependency has placed Sri Lanka in a weaker bargaining position, as Sri Lanka cannot advocate for workers' rights at the cost of straining diplomatic relations and jeopardizing remittance flows. Such a situation was viewed during the 2018 Philippines diplomatic crisis with Kuwait over the abuse towards migrant domestic workers. In the post economic crisis, Sri Lanka is in an even more difficult position to bargain due to their vulnerable and fragile economic context. At large, it may appear that Sri Lanka's foreign policy prioritizes economic stability over the well-being of its migrant workers, creating a tension between national interests and human rights.

Looking Ahead

Labour migration is an important source of remittances for Sri Lanka, yet foreign policy towards host countries often fail to adequately protect the rights of migrant workers, who are the very source of the income. Sri Lanka needs to focus on developing its labour diplomacy, strengthen enforcement mechanisms of legal instruments, expand consular support and foster international cooperation, to turn this silent crisis into an opportunity for sustainable and equitable labour mobility.