Talks are nearing completion on a $5 billion road-and-rail link between India and Sri Lanka, with India covering the full cost, according to Environment Secretary Prabath Chandrakeerthi.
This marks the first major bilateral infrastructure project since President Anura Kumara Dissanayake's election, reflecting New Delhi's efforts to balance Chinese influence in the region.
India, Sri Lanka's largest trade partner and a leading source of foreign direct investment (FDI), contributed around $142 million in 2021.
Chandrakeerthi noted, “Last month I participated in a meeting with India in New Delhi, and we are going to establish the highway and railway line connectivity between Rameswaram in India and Trincomalee in Sri Lanka,” and further he added, “This is being planned as businessmen in both countries have to pay more, and with the road and rail connectivity, both parties can get help because it will help in trade with European and other countries. Indian businessmen can also get some benefits from Sri Lanka as well”.
A land bridge between Rameswaram in Tamil Nadu and Talaimannar in Sri Lanka was initially proposed in 2002, but opposition from the Tamil Nadu government halted progress.
Talks resumed in 2015, with India requesting the Asian Development Bank to conduct a pre-feasibility study on financing the link. Plans have since expanded to include Trincomalee.
Currently, there is no direct land connection between the two countries. The closest link, a railway station in Dhanushkodi, India, was destroyed by a cyclone in 1964. A short boat ride used to connect Dhanushkodi with Talaimannar until 1966.
Chandrakeerthi added that “The cost of the project is still not finalized. We have to have more discussion about that, but I think it is estimated to be nearly $5 billion,” Further, he added, “It will entirely be borne by the Indian government. We have to get some approval for environmental clearance.”
The plan may include bridges and underwater tunnels to ensure uninterrupted maritime traffic.
