This article covers India's development partnership with Sri Lanka: credit and grant assistance, the Indian Housing Project and other grant projects, humanitarian and pandemic assistance, the response to Cyclone Ditwah, defence and security cooperation, and ITEC training. All information is drawn from the Ministry of External Affairs (MEA) brief on India-Sri Lanka relations dated June 2026.
Scale of assistance
According to the MEA brief of June 2026, development cooperation is one of the most important pillars of the relationship. India's overall credit assistance to Sri Lanka amounts to over USD 7.5 billion, including emergency assistance, and grant assistance currently stands at over USD 850 million.
The Government of India has been carrying out people-oriented development projects across the 25 districts of Sri Lanka. They cover almost all major sectors, including infrastructure, housing, health, livelihood and rehabilitation, education, agriculture, renewable energy, railways and industrial development.
Indian Housing Project and other grant projects
India's biggest grant assistance project is the construction of 60,000 houses under the four phases of the Indian Housing Project, at a total cost of more than INR 1800 crore. The fourth phase, covering 10,000 houses for plantation sector workers, follows an announcement made by PM Modi in May 2017. India is also extending grant assistance of INR 300 crore towards implementing the Sri Lanka Unique Digital Identity project.
Other prominent projects named in the brief include:
- upgradation of the Northern Railway line and track-laying
- an advanced signalling and telecommunication system along the Maho-Anuradhapura Railway Line, converted from a line of credit to grant assistance; during President Anura Kumara Disanayaka's visit in December 2024, India announced a grant of USD 14.9 million for the signalling project in the Maho-Anuradhapura section
- the island-wide 'Suwa Seriya' Emergency Ambulance Service
- a multi-specialty hospital at Dickoya
- a new surgical unit at Teaching Hospital Batticaloa
- multi-sectoral grant assistance for socio-economic development projects in the Eastern province
- a Hybrid Renewable Energy project in 3 Islands off Jaffna
Humanitarian and pandemic assistance
During Sri Lanka's economic crisis in 2022, India's financial support was augmented by humanitarian assistance through donations of drugs, medicines, essential food items and kerosene. During the Covid-19 pandemic, the brief says, India acted as first responder by supplying vaccines and essential medicines, including a donation of 500,000 doses of COVISHIELD vaccines in January 2021 and a grant of 100,000 Rapid Antigen Test (RAT) kits in February 2022.
Operation Sagar Bandhu and Cyclone Ditwah
India launched 'Operation Sagar Bandhu' to assist Sri Lanka after Cyclone Ditwah. It provided more than 1123 tonnes of relief material, including dry rations, tents, tarpaulins, hygiene kits and water purification kits, and about 14.5 tons of medicines and surgical equipment. Around 60 tons of equipment, including generators and inflatable rescue boats, and 248 tons of Bailey Bridge units were also given.
India deployed two columns of the National Disaster Response Force, comprising 80 experts and K9 units, which evacuated 150 stranded persons. A field hospital with 78 medical personnel in Mahiyanganaya in Kandy catered to more than 7000 patients, and medical centres were set up from BHISM Arogya Maitri cubes in Ja-Ela and Negombo. INS Vikrant, INS Udayagiri and INS Sukanya provided immediate relief, and two Chetak helicopters from INS Vikrant and three MI 17 helicopters rescued 272 survivors.
During his visit as PM Modi's Special Envoy in December 2025, EAM announced a comprehensive relief package worth USD 450 million, made up of USD 350 million in INR-denominated LOCs and USD 100 million of grant assistance. It covers five sectors: railway, road and bridge connectivity; housing and water supply; health and education; agriculture and livestock; and disaster preparedness. Under the package, 5 Bailey bridges have been inaugurated and restoration of damaged sections of the Northern Railway Line has commenced. After the brief, in August 2026, agreements on two INR-denominated Lines of Credit of USD 250 million for railway projects and USD 100 million for livestock and other priority requirements were exchanged, and work on rehabilitation of the Northern Railway corridor was reported completed with train services resumed.
Earlier, the Indian Navy and Indian Coast Guard assisted in Sri Lankan waters to avert large-scale environmental damage in the MT New Diamond incident in September 2020 and the MV XPress Pearl incident in May 2021.
Defence and security cooperation
High-level defence engagements take place regularly through visits of Service Chiefs from both sides, and an Annual Defence Dialogue is held between the Defence Secretaries every year. The brief also notes continuous naval interactions and ship and submarine visits from India to Sri Lanka.
The bilateral exercises SLINEX (Naval Exercise) and MITRA SHAKTI (Army Exercise) are held every year, alternately in India and Sri Lanka. MITRA SHAKTI was last held in India in November 2025, and SLINEX in Colombo in August 2025.
In capacity building, a Maritime Rescue Coordination Centre (MRCC), established with grant assistance worth USD 6 million, was commissioned during EAM's visit in June 2024. An Indian Navy Dornier Aircraft was deployed in Sri Lanka from August 2022 to August 2025 for maritime surveillance. An MoU on Defence Cooperation was signed during PM Modi's visit in April 2025, and India offers around 1200 training vacancies for the Sri Lankan Armed Forces annually.
The brief describes security cooperation on counter terrorism and related areas as an important aspect of the relationship. It says the Colombo Security Conclave has emerged as a key platform in recent times to address regional security issues.
ITEC training
Under the Indian Technical and Economic Cooperation (ITEC) Program, 402 fully-funded slots are offered every year to officials and other eligible citizens for short-term training programmes.