India signs nuclear pact with Sri Lanka, countering China’s sway

On his first overseas tour since winning an election last month, Sri Lanka's new president has sought to rebalance his country's foreign relations away from China.

NEW DELHI // India and Sri Lanka signed a civilian nuclear pact on Monday that would help the island nation meet its energy goals, a sign of improving ties as president Maithripala Sirisena looks to reduce his country’s dependence on China.

Mr Sirisena, on his first overseas tour since winning an election last month, hailed his country’s close relations with India in a joint briefing with prime minister Narendra Modi in New Delhi.

They did not provide details on the deal.

“The bilateral agreement on civil nuclear cooperation is another demonstration of our mutual trust,” Mr Modi said. “This is the first such agreement that Sri Lanka has signed. It opens new avenues for cooperation.”

Mr Sirisena has promised to rebalance Sri Lanka’s foreign relations away from China. Officials under his predecessor, Mahinda Rajapaksa, had rankled India by suggesting that Pakistan – whose reactors have mostly been built by Chinese companies – may help it build nuclear power plants.

Mr Modi said on Monday that India and Sri Lanka would also expand defence and security ties. Both countries have shared interests in maritime security in the region.

“India is Sri Lanka’s closest neighbour and friend,” Mr Modi said. “I believe that our destinies are interlinked. Our security and prosperity are indivisible.”

Last year, President Xi Jinping became the first Chinese leader to visit Sri Lanka in 28 years as he courted Colombo’s support for a maritime trade route.

Chinese submarines docked twice in Colombo last year, triggering protests from India. The visits were for “replenishment purposes” and Sri Lanka would not act against India’s security interests, deputy minister for external affairs, VK Singh, said in response to India’s parliament in November.

Beijing has invested heavily in Sri Lanka infrastructure projects and supported Mr Rajapaksa in the face of US-led inquiries into human rights abuses allegedly committed during the end of a 26-year civil war.

“Sri Lanka certainly wouldn’t be foolish enough to kick China out – not when billions of dollars of investment go with it – but will likely loosen its embrace,” said Romita Das, an analyst at Control Risks in Singapore. “The nature of the rebalancing as it unfolds will also have significant implications on China’s efforts to project its power in the Indian Ocean region.”

After the stunning defeat of his predecessor Mr Rajapaksha in general elections, Mr Sirisena has tried to restore a balance between the two Asian giants, and plans a visit to China soon.

Sri Lanka and India began talks on a civilian nuclear cooperation pact in 2012 and held two more rounds of talks last year.

Colombo is seeking to incorporate nuclear into its long-term energy plans to diversify from biomass, hydroelectricity and imported oil products, then-power minister Patali Champika Ranawaka said in 2010. It was considering help from India, Pakistan, Russia, France and the US at that time.

Last month, Mr Modi and US president Barack Obama announced a breakthrough on a long-stymied 2008 civilian nuclear agreement that could trigger an expansion of nuclear imports and projects.

* Bloomberg, additional reporting from Associated Press