And, Kachachatheevu Remains By N Sathiya Moorthy

After less than a week of avoidable tensions, doubts and suspicions, Kachchatheevu remains – the tiny islet with Sri Lanka, and the controversy as a domestic issue in Indian politics. There is nothing on record to show that Indian Prime Minister Narendra Modi had mentioned it in his delegation-level discussions with the Sri Lankan team, headed by President Anura Kumara Dissanayake during his three-day visit to the island-nation. This was so despite their multi-sector talks touching upon the larger fishers’ dispute, where both sides seem to have reiterated only their known positions from the past.

Incidentally, Modi did not touch Kachchatheevu in his public rally on way back home in the southern temple town of Rameswaram, which is at the centre of the fishermen’s dispute between the two countries. Not that it was expected, given the complexities and legalities involved. It’s unlike the accompanying, larger fishermen dispute, which too has remained in the news in both nations, with the Sri Lanka Navy (SLN) continuing to arrest Indian fishers ‘illegally’ crossing the IMBL and ‘poaching’ in Sri Lankan territorial waters, closer to the northern Jaffna coastline.

Modi touched only upon the latter issue in his Rameswaram speech and recalled how his Government had obtained the release of over 3,000 Tamil Nadu fishers, arrested by the SLN, over the past ten years (of his rule, which began in 2014). Incidentally, the Sri Lankan Government had freed 11 Indian fishers as ‘goodwill gesture’ on the eve of Modi’s visit. In his interactions with the Sri Lankan leadership, the Prime Minister urged them to adopt a ‘humane’ approach in the matter.

‘Unanimous’ passage

The ‘Kachchatheevu issue’ became a political controversy in India for Sri Lanka and Sri Lankans to sit up and take notice after the State Assembly of the South Indian State of Tamil Nadu passed a ‘unanimous resolution’ calling for India’s federal government to take initiatives for the ‘retrieval’ of Kachchatheevu. The resolution itself was short, just two-paragraphs long. The second and concluding paragraph urged Modi to obtain freedom for Tamil Nadu fishers arrested by the Sri Lanka Navy (SLN) and also their high-cost bottom-trawlers that were being impounded – as a ‘goodwill gesture’. Nothing more, nothing less.

The resolution was moved by Chief Minister and ruling DMK head M K Stalin. It was in Tamil and there was no English translation either. By restricting it all to the present, the Chief Minister wanted to ensure a unanimous passage, including traditional rival, AIADMK – which obliged. Only the ruling BJP at the Centre, of Prime Minister Modi, opposed it, but even its members staged a walk-out, thus ensuring technical ‘unanimity’. They had the option of demanding a vote, but given the local mood, they chose not to.

This is not the first or the only resolution that the Tamil Nadu Assembly has passed on the subject. As Chief Minister Stalin said in a letter to the Prime Minister a day later, the State Assembly had passed similar resolutions at least four times in the past – in 1974, 1991, 2013 and 2014. Whenever the issue props up, there has been contestation between the DMK and its political rivals – namely, the AIADMK and the BJP – if Stalin’s late father M Karunanidhi endorsed the 1974 IMBL Agreement between New Delhi and Colombo.

Cede, Annex and what

By mentioning the 1974 resolution in his letter to the Prime Minister, Stalin was throwing up evidence that his late father and then DMK Chief Minister M Karunanidhi had indeed opposed the Agreement, which ‘placed’ Kachchatheevu on the Sri Lankan side of the International Maritime Boundary Line (IMBL). It was basically a ‘territorial issue’ if it was one, at the time, and there was no anticipation of a fishers’ dispute flowing out of it in such proportions as has been witnessed since.

The prevailing belief was that under the Indian Constitution, the federal government alone had the power to ‘cede’ or ‘annexe’ territories from other countries. The then federal government under Prime Minister Indira Gandhi concluded that it was for the first time that the two nations were marking the IMBL (under UNCLOS that was set to come into force) and hence there was no territory to be ‘ceded’ or ‘annexed’.

It meant there was no constitutional provision to deal with such a situation. The Indian federal government, in its wisdom, hence concluded that it was only an official acknowledgement of the Ocean territory that fell under the two nations. Accordingly, the letters exchanged by Indian Foreign Secretary Kewal Singh and his Sri Lankan counterpart W T Jayasinghe, were found to be sufficient. It was the case when the Agreement was modified in 1976.

Wadge Bank exchange

However, in the years that followed, Jayalalithaa Jayaram, the late AIADMK Chief Minister of Tamil Nadu, took a position, based on documents available in the Tamil Nadu Archives (then or earlier) that Kachchatheevu belonged to Tamil Nadu, and for the Centre to give it away to Sri Lanka, cannot be done through a mere exchange of letters. Instead, it could be done only through an official resolution passed in both Houses of Parliament, by a simple majority – or, so went the argument.

Suffice to point out that the Tamil Nadu Assembly resolutions of 1993, 2011 and 2014 on Kachchatheevu were piloted by the Jayalalithaa Government. The immediate purpose was to blame rival DMK and also the Congress ally-turned-opponent from 1991. Incidentally, in 1991, her first year as Chief Minister, Jayalalithaa broke tradition, when in her Independence Day speech at Chennai’s Fort St George, called upon New Delhi to ‘retrieve’ Kachchatheevu.

The immediate provocation for the Tamil Nadu Assembly passing the new resolution at present flows from State BJP leaders constantly accusing the DMK in particular, and also the latter’s Congress ally at present, of letting down local interests over the 1974 Agreement. The State BJP leaders, including party chief, K Annamalai, had taken their cue from Prime Minister Narendra Modi and External Affairs Minister (EAM) S Jaishankar, who had levelled similar charges during the Lok Sabha poll campaign last year.

Tamil Nadu had already voted in the multi-phase elections to Parliament’s Lower House when Modi levelled that accusations, hence it did not have any impact where it could have mattered. Even without it, successive election results in the Rameswaram area where the issue mattered, the local people seemed to be voting in terms of political loyalty rather than on either the Kachchatheevu issue or the larger fishermen’s dispute.

However, the issue died a momentary death for the n-th time after veteran diplomats familiar with the subject too joined the media discourse of the time. They too lent their support to the point that technically India did not ‘give away’ Kachchatheevu. They also recalled, joined the handful – or, less – of knowledgeable academics and observers that at best, it was a ‘territorial exchange’ of a kind.

In ‘return’ for Kachchatheevu, India got Wadge Bank, a ‘continental shelf’ south of the land’s end at Kanyakumari – again under the said Agreements. At the time, it was incidental that Wadge Bank is now believed to be mineral rich. Instead, in the aftermath of the victorious 1971 war with Pakistan, when their naval vessels could move closer to the peninsular shores and also wreak damage, India needed to secure its Ocean territory, where all it mattered the most.

In Sri Lanka, the issue did not flare up after then Foreign Minister Ali Sabry told newsmen that New Delhi had not informed the Government about any change in the approach of the former. He claimed that it was only an internal election-time affair in India. The same may apply to the situation even at present, what with the long run-up to the Tamil Nadu Assembly election being here, already.

Will not solve…

In their time, both Jayalalithaa and Karunanidhi filed separate petitions in the nation’s Supreme Court, and in their respective names, to declare the ‘transfer’ of Kachchatheevu to Sri Lanka, as unconstitutional. The two cases did not see much action until their death, respectively, in 2016 and 2018. Recently, DMK Treasurer and octogenarian-parliamentarian, T R Baalu, moved a petition in the Supreme Court to implead himself in the case, in the place of late Karunanidhi. The court is set to hear the petition later this year.

That having been said, there is realisation that the ‘retrieval’ of Kachchatheevu, even if it were to happen, would not solve the fishers’ dispute. Leave aside the monumental task of re-drawing the IMBL, which is just not going to happen, the very fact that even with Kachchatheevu on India’s side of the IMBL, the fishers’ dispute cannot end, is a reality. That is because there are too many trawlers operating from the Rameswaram region and they all would be fighting over too little a catch, which alone is available, in the Kachchatheevu waters.

Exclusive water body

Incidentally, the two IMBL Agreements do not mention Kachchatheevu by name. Instead, they refer only to latitudes and longitudes. India and Sri Lanka also promptly notified their IMBL Agreements under UNCLOS. This only strengthens any case against re-opening a settled maritime border dispute between two neighbours. The matter thus rests there – for now and for the future.

Then, there is a question about the IMBL in this sector being skewed and not following the median-line principle set out for the UNCLOS. When India began working on the ‘Sethusamudram Canal’ in these waters three decades back, the US, in particular, publicly claimed that if those waters were to be opened for transport, then, they too would have the right to the use of the same.

As is known, vessels transhipping from the eastern and western shores of India to the other now circumnavigate Sri Lanka. It’s because the Sethu waters are too shallow for ships of any kind. The Indian effort was to cut down on costs and time by creating a sea-canal in these parts, as visualised by a British engineer a century and more back.

However, the work on the canal project stalled after the Indian Supreme Court intervened on faith-based petitions, calling it the sacred ‘Ram Sethu’. As may be recalled, Prime Minister Modi, while flying from Anuradhapura in Sri Lanka to Rameswaram, over the weekend, mentioned how he could have ‘darshan’ of ‘Ram Sethu’ from his chopper.

Having said that, by taking a collective position in the matter when it mattered for the purpose of UNCLOS notification, India and Sri Lanka together ensured that the Palk Strait remained an ‘exclusive water body’ between the countries, with no room or space for any third nation to meddle with it, then, now or ever. Any reopening of the issue, now or ever, whatever the reason and methodology, could only open a Pandora’s Box, and both nations seem to be well aware of it!

(The writer is a Chennai-based Policy Analyst & Political Commentator. Email: sathiyam54@nsathiyamoorthy.com)

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Court lifts stay order issued on elections for several LG bodies including CMC

The Court of Appeal has ordered to lift the injunction order issued previously preventing the conduct of the Local Government Election for 18 local government bodies including the Colombo Municipal Council on 6 May.

The court further directed that the rejected nomination papers submitted for the aforementioned local government institutions be re-accepted.

This order was issued by a bench of Court of Appeal judges comprising Acting Chairman of the Appeals Division, Justice Mohammed Laffar Tahir, and Justice Priyantha Fernando, following the consideration of a motion submitted by the Attorney General.

India proposes land connectivity again, but SL still non-committal

India has proposed a land connectivity project with Sri Lanka once again during the visit of Indian Prime Minister Narendra Modi, but the Sri Lankan government has not committed yet, the Daily Mirror learns.

In 2002, the then Sri Lankan government proposed a land bridge between Rameswaram in Tamil Nadu, India, and Talaimannar in Sri Lanka. That was based on the ancient land link called Ram Setu or Adam’s Bridge.

According to the plan, road and rail bridge links were proposed to be developed.

Later, the two sides again started talks on the project, and it even crept into the joint statement issued during the time of the last government. It was not included in the joint statement issued after the visit of President Anura Kumara Dissanayake to New Delhi last year, though.

During the latest visit of Prime Minister Modi, the Indian side proposed it. The Sri Lankan government did not respond to it immediately, as reported.

Prime Minister Modi, on his way back from Sri Lanka, had a Darshan of Ram Setu, also known as Adam’s Bridge, a vast chain of natural limestone shoals that spans an impressive 30 miles (48 km) over the Indian Ocean. This ancient land bridge is celebrated for its geological, historical, and mythological significance. The ancient limestone bridge is believed to have been built by Lord Ram.

Meanwhile, India is ready to consider Sri Lanka’s request to increase the apparel export quota to 50 million units only in terms of the proposed Economic and Technology Cooperation Agreement (ETCA), the Daily Mirror learns.

In the wake of the United States slapping 44 percent tariffs on Sri Lankan exports, Sri Lanka is currently in the process of exploring fresh avenues to support businesses now grappling with U.S. tariffs.

Recently, Foreign Minister Vijitha Herath is reported to have said that Sri Lanka requested India to expand the quota to export under the Indo-Lanka Free Trade Agreement to 50 million units from the current 8 million.

However, Daily Mirror learns that this is a demand made by the Sri Lankan side during talks on ETCA.

India is ready to look at Sri Lanka’s request only when negotiations resume on ETCA.

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Court orders to re-accept 35 more rejected LG Polls nominations

The Court of Appeal has ordered the relevant Returning Officers to reaccept several rejected nomination papers due to issues arising from the certification of birth certificates by Justices of the Peace and the oath taken under the 7th Schedule to the Constitution.

Accordingly, the court has ordered nearly 35 rejected nomination papers to be reaccepted today (10).

This order was issued when several petitions filed by political parties and independent groups against the rejection of the relevant nomination papers were taken up before a bench of judges comprising Acting President of the Court of Appeal, Justice Mohamed Lafar Tahir and Priyantha Fernando this morning.

How Did a Government Housing Complex Become a Torture Chamber?

Former Inspector General of Police Ernest Perera made a startling revelation regarding the transformation of a government housing complex into a torture chamber. This revelation was recorded in the Batalanda Commission Report.

The Batalanda housing complex, originally under the purview of the Government Fertilizer Corporation, became a site of illegal detentions and torture.

During the Batalanda Presidential Commission, significant details emerged about the misuse of the housing complex.

At the time, Ranil Wickremesinghe was the Minister of Industries, and the complex was under the Ministry of Industries.

According to the commission’s findings, houses labeled A2/2, A2/1, A2/3, A1/7, B2, B1, and B7 were used by Wickremesinghe.

Additionally, houses in the complex were allocated to a police team led by Douglas Peiris, the then OIC of Peliyagoda Police.

Thirteen houses were designated for officers of the Kelaniya Anti-Riot Unit.

The report revealed that these allocations were made under Wickremesinghe’s instructions and orders.

However, some houses were occupied only nominally.

Former IGP Ernest Perera testified before the commission, expressing surprise that Nalin Delgoda, who had a private residence, was allocated a house in the complex but never resided there.

The commission uncovered that the allocation of houses to police officers was done improperly.

There was no official documentation from the police headquarters or Kelaniya division to support the lawful acquisition of these houses.

Former IGP Perera suggested that these allocations might have been based on private transactions.

The commission further questioned whether the improper allocation of houses facilitated the operation of illegal detention centers and torture chambers.

Perera acknowledged that the misuse of the housing complex for such purposes was indeed possible.

The pressing need now is to ensure justice is served.

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Decision to privatise SriLankan Airlines scrapped

A decision taken by the previous administration to privatise SriLankan Airlines has been scrapped, the President’s Media Unit said.

A meeting between President Anura Kumara Dissanayake and senior officials of SriLankan Airlines was held at the Presidential Secretariat.

The discussions mainly focused on proposals to transform SriLankan Airlines into a more profitable state-owned enterprise.

Special attention was also given to possible short-term and long-term solutions for the airline’s debt management.

The talks further explored new investment opportunities for the airline. The President instructed the officials to take all necessary steps to transform SriLankan Airlines into a profit-making entity.

Although the airline has recorded operational profits, due to past mismanagement and poor decision-making, it remains one of the leading loss-making state enterprises.

The current government has decided to reverse the previous administration’s decision to privatize the airline. Instead, it plans to continue operating it as the national carrier while introducing a new management structure to ensure its profitability moving forward.

Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, President’s Senior Advisor Duminda Hulangamuwa, Chairman of SriLankan Airlines Sarath Ganegoda along with several senior officials of SriLankan Airlines, were present at the meeting.

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Committee to be appointed to look into repealing of PTA

A Cabinet Paper has been presented to appoint a committee to look into repealing the Prevention of Terrorism Act (PTA), Prime Minister Harini Amarasuriya told Parliament today.

Responding to a question raised by MP S. Rasamanikkam in the House, she said the government will also come out with a wider consultation on repealing the PTA and to compile new legislation.

Namal Rajapaksa meets Indian PM Modi

Sri Lanka Podujana Peramuna (SLPP) Parliamentarian Namal Rajapaksa met with Indian Prime Minister Narendra Modi on Tuesday (08).

The meeting has taken place on the sidelines of the ‘Rising Bharat’ Summit 2025 held in India.

Posting on ‘X’ (formerly Twitter) Rajapaksa said that India has reached greater heights in the modern world under Prime Minister Narendra Modi’s strong leadership with India’s economy rapidly growing further.

MP Namal Rajapaksa, the eldest son of former President Mahinda Rajapaksa, addressed the ‘Rising Bharat’ Summit in India yesterday (April 8), joining a distinguished lineup of regional and global leaders.

The summit also featured a keynote address by Indian Prime Minister Narendra Modi.
Premier Modi also visited Sri Lanka last week on a two-day state visit

Indo-Lanka and JVP-India relations come full circle – Daily Mirror editorial

Pity Wijeweera, the late leader of the Janatha Vimukthi Peramuna (JVP), whose life came to an end in 1989. The late Wijeweera feared our giant neighbour India. He claimed India had expansionist intentions and even wrote chapters on the subject in his own ‘little red book’.
Members of his organisation took these anti-Indian essays so seriously that during the 1988-1990 reign of terror, our countrymen and women, on the pain of death, were forced to refer to the name of the vegetable ‘Bombay Onion’ as ‘B’ Onion. The then JVP also viewed the estate Tamils as an Indian ‘fifth column’.

So blinded by petty nationalism was the JVP at that time, they were unable to even recognise that the upcountry Tamils were, in fact, the only community in our country who could correctly be identified by the Marxian term ‘proletariat’. Instead, the JVP looked at the community as an internal enemy and as mentioned earlier, a fifth column for India.

Fortunately, in the recent past, under a change in leadership, the JVP’s attitude towards the upcountry Tamil community changed dramatically. The party backed the struggles of the community for justice. So successful was the JVP in its overtures that during the general election of 2024, the JVP/NPP combine won five of the eight seats in the Nuwara Eliya district areas where upcountry Tamils form a majority.

Similarly, its anti-India stance underwent a radical change after the party received an official invitation to India in early 2024. Party leader Anura Kumara Dissanayake and a team of JVP leaders were warmly received and held discussions with important Indian ministers. During discussions, they emphasised that a future JVP government would never permit Sri Lankan soil to be used to endanger India’s security.

After taking over the presidency, President Dissanayake paid his first visit as head of state to India. He was accorded a guard of honour by the very Indian forces his party once rose up in arms against.

So it is unsurprising that during Premier Modi’s visit to Lanka a few days ago, Lanka and India initialled an important defence and co-operation pact.

As the idiom goes, ‘the wheel has turned full circle’. The last time an MoU on defence and understanding between our two countries was signed was thirty-eight years ago. Then Indian premier Rajiv Gandhi literally forced the Indo-Sri Lanka Defence Pact down President Jayawardene’s throat.

Today, the boot is on the other foot, Lanka needs India’s help, especially regarding meeting its international debt repayments. Our chief concern is the state of the economy. US President Trump’s imposition of a huge tariffs on Lankan exports to the US will almost make it impossible to achieve targets within the framework of the IMF Extended Fund Facility (EFF) and the stipulated timeframe.
Lanka therefore needs to seek fresh markets and investments to offset the anticipated drop in income from the US market. However, India is still the third largest importer of our goods as well as our third biggest lender. It offers us a way out in the midst of lower exports to the US.

We already have a Free Trade Agreement (FTA) with India, which has been extremely beneficial to us. The terms of trade are favourable to our country. Sixty-five percent of our exports benefit under the agreement, while only 5% of Indian exports to us receive the concession. We need to upgrade this agreement.

Fortunately, the present government, despite earlier seeing dangers of Indian expansionism, has eaten humble pie and acknowledged the important role India played during our financial crisis. It has also agreed to advance the Sampur Power Project. Government is also in talks to upgrade the Free Trade Agreement; all of which will help offset, to an extent, the US imposition of tariffs on our exports to that market.

India, in turn, has tried not to ruffle Lankan feathers by raising contentious issues. The actions of both sides indicate intentions of attempts to create better relations. India, after all, has not suggested that Lanka becomes India’s 29th state or 8th Union territory! It is time all Lankans realise our future lies in aligning with Asia and give up the slavish colonial mentality of the past.

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Sri Lanka exporters asked to suspend some shipments to US after Trump tariffs

Some US buyers have asked exporters in Sri Lanka to suspend shipments after a 44 percent tax was slapped on shipment from the island, apparel industry sources said.

“There are some expectations that President Trump may give an extension from the April 09 deadline,” an apparel industry source said.

“If it is extended the buyers may be able to clear the goods without the tax.”

The request to halt shipments by US buyers are coming just as factories are closing for the traditional New Year holidays, an exporter said.

Sri Lankan export firms usually give extended holidays for the traditional Sinhala-Tamil New Year and use the time to do scheduled maintenance of factories.

D – Day

On Monday the Dow Jones index briefly picked up amid speculation that there may be a three-month extension of the deadline.

To be as abundantly clear as possible, trading desks started sending out this headline at 10:09. I was regurgitating what the market was reacting to, to my 600 followers. It was an incorrect interpretation of a Fox News interview. https://t.co/RpN6c5RqfW — Hammer Capital (@yourfavorito) April 7, 2025
However, stocks resumed their slide after the Whitehouse told the media that speculation of an extension was ‘fake news’.

About 23 percent of Sri Lanka’s exports go to the US. But in apparels 1906 million dollars or 40 percent of the total 4,761 million dollars went to the US.

April is the month Sri Lanka exporters ship the lowest volumes.

In 2024, Sri Lanka shipped 114 million dollars of apparels compared to 140 to 160 million dollars a month in the rest of the year.

If taxes remain, Sri Lanka exporters face higher tariffs than neighboring Bangladesh and India.

Apparel sector officials have said the industry has thin margins and buyers have an existing network of factories in multiple countries to which orders can be easily transferred.

Sri Lanka is hoping to meet US trade officials this week to submit proposals to cut tariffs and boost imports. Bangladesh has said it will import LNG from the US among other goods to reduce the deficit.

Doctrine

Trump’s taxes appears to be coming mainly from a Sri Lanka style classical-Mercantilist false belief that trade deficits are ‘bad’.

The US trade and current account deficits come from foreign private investments (due to good investment framework and stable policies before Trump and freer trade) and government borrowings (foreign central bank’s which purchase US securities to build reserves for example) which are spent domestically.

The US is the worlds second largest exporter after China. China beat the US as the world’s top exporter only in 2009, soon after the collapse of the housing bubble. The US also has a services surplus.

However Trumps other strategy appears to be to shift some income tax (which destroys domestic savings and capital) into border taxes, in line with the status before 1913.

Under the US constitution, which guaranteed equal treatment, progressive income tax was illegal as it denied equal treatment to citizens before the law. A constitutional amendment was brought in 1913 to apply law unequally which some belief punishes the most productive citizens.

After repeated bouts of ‘monetary accommodation’ and ‘stimulus’ to boost growth by macroeconomists, US government finances have been driven to the wall.

US was running budget surpluses for the first time since the collapse of the Bretton Woods at the end of the Great Moderation period, when Ben Bernanke misled Alan Greenspan to reflate the economy base on a false deflation scare, firing a housing bubble in the process.