Domestic factors significantly influence the foreign policy between India and Sri Lanka. Political stability, economic conditions, and public opinion in each country shape their diplomatic interactions.

For instance, political changes in Sri Lanka, such as shifts in government, can lead to variations in its foreign policy approach towards India. Similarly, India’s domestic priorities, like economic growth and security concerns, affect how it engages with Sri Lanka.

During Sri Lanka’s 2022 economic crisis:

India’s role was pivotal. Sri Lanka faced severe financial difficulties, including a lack of foreign currency reserves, leading to shortages of essential goods like food, fuel, and medicine. India stepped in to provide substantial assistance to help stabilize the situation. This included credit lines for purchasing essential goods, financial aid, and humanitarian support. India extended over $4 billion in assistance, including a $1 billion credit line for importing essentials and another $500 million for fuel imports.

India’s support was driven by both strategic interests and a desire to help a neighboring country in distress. This aid helped alleviate some immediate economic pressures in Sri Lanka and demonstrated India’s commitment to maintaining strong bilateral ties. The domestic imperative for India to support regional stability and humanitarian assistance strongly influenced its foreign policy during the crisis.