A number of proposals, which have received Cabinet’s nod of approval for goods and services on grant from India before Finance Minister Basil Rajapaksa left for New Delhi to secure a US$1bn credit line, contain conditions, the Sunday Times learns. These proposals needed to get Cabinet approval for Sri Lanka to secure the Indian loan. [...]

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Cabinet approves maritime security pact with India

Indian experts in Lankan military facilities; Indian style NIC and floating dock projects; Jaishankar here next week
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A number of proposals, which have received Cabinet’s nod of approval for goods and services on grant from India before Finance Minister Basil Rajapaksa left for New Delhi to secure a US$1bn credit line, contain conditions, the Sunday Times learns.

These proposals needed to get Cabinet approval for Sri Lanka to secure the Indian loan. This was after agreements were also signed for the Trincomalee oil tanks, a renewable energy project in Sampur and an energy project off Mannar previously. They also come on the eve of Indian External Affairs Minister S. Jaishankar’s visit to Sri Lanka scheduled for the coming week. Sri Lankan Defence analysts have warned that some of these proposals hastily rushed through the Cabinet require deeper study in the national interest. For instance, according to a Cabinet paper for the supply of DO-228 Dornier Reconnaissance Aircrafts from India to Sri Lanka, New Delhi has agreed to grant one plane for free. As it will take two years to manufacture, it will loan an active Dornier (INDO) from the Indian naval fleet for search-and-rescue operations in the interim. But full deal is contingent on Sri Lanka then buying a third Donier through an Indian credit line.

The twin-engine Doniers will be used in the Sri Lanka Navy’s maritime surveillance activities and search and rescue (SAR) in and off Sri Lanka, especially to conduct reconnaissance within the Exclusive Economic Zone (EEZ) of Sri Lanka, the Cabinet paper says. It adds that Sri Lanka has sought India’s assistance in this regard.

While the Donier is on loan, a team comprising a maximum of five Indian technical officers will stay in Sri Lanka to train the Sri Lankan Air Force and Navy personnel on maintenance and handling. “This agreement ties us to buying a third aircraft, whereas I’m sure Japan, the US or another county will also give us a plane for free,” a maritime defence analyst said.

“Another issue with the Donier that is to be loaned is that the operational plan is not very clear, whether patrols will be done jointly with the Indians,” he continued. “Reading in between the lines, it is also implied that we are barred from sharing any information gathered with anyone but them.”

The relevant section of the Letter of Exchange reads: “Information gathered during the conduct of operation by the INDO shall be the property of GoSL [Government of Sri Lanka]. No classified information under this Letter of Exchange shall be disclosed to any third party by GoI [Government of India] unless authorised in writing by the GoSL. GoI shall treat such authorised classified information with the same level of classification as GoSL.”

“Whatever said and done, we have claimed neutrality and this is an Indian asset on Sri Lanka, operating out of Sri Lanka,” the analyst pointed out. “This is the way they creep into our system, or naval reconnaissance, the Defence Ministry and Air Force facilities. It compromises our basic security in terms of independence of the country.”

Sri Lanka has also agreed to a grant of 3bn Indian rupees (11.4bn LKR) to introduce a digital personal identification system for its citizens based on the Indian Aadhaar system. The Memorandum of Understanding precludes third country involvement in the project even for the elements of it that are not funded by the Indian Government.

“GoSL shall select Indian firms as exclusive contractor(s) for executing elements of the project carried out with the Grant in accordance with the requisite tendering procedures of GoSL,” it states. “Any third country involvement in the project shall be based on mutual consent. The elements of the ‘Project’ not funded through the Indian Grant shall not be executed by a 3rd country entity during the period this MoU remains in force. In this regard, the issuance of a Confirmation of No Objection by the JPMC [Joint Project Monitoring Committee] shall be an essential qualifying criterion for any entity being considered for such award of an element of the ‘Project’ not funded through the Indian Grant.”

It has been agreed to set up a joint Maritime Rescue Coordination Centre (MRCC) to strengthen Sri Lanka’s search and rescue region (SRR) on a US$ 6mn grant from the Indian Government. The agreement for this is between Sri Lanka’s Defence Ministry and India’s M/s Bharat Electronic Ltd (BEL) for the supply, installation and commissioning of the MRCC.

The MRCC will be at the Naval Headquarters in Colombo, the Maritime Rescue Sub Centre (MRSC) will be at Hambantota, and the Sub-Units at Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro and Mullikulam.

“Why must they be in the Navy headquarters or in the most crucial naval camps around the country?” the analyst questioned. “We must ensure that no foreign forces have access to any of those places. Even at the headquarters, they must not have access to naval operation which will happen if they place the MRCC in the naval ops center. Security should not be compromised by MRCC. It must be in a separate location but run by the Navy.”

Sri Lanka will also accept a gift of a US$ 19.81mn, 4000-ton floating dock (FD) from the Government of India for the Navy. It will be built by Goa Shipyard Ltd and “primarily be stationed in Trincomalee, Sri Lanka”, according to the agreement.

“The Floating Dock may be moved except to the port of Hambantota at the discretion of the GoSL, with prior notification to GoI, when the need arises to move it to any other location within Sri Lanka considering the safety, economic factors and efficient & effective utilisation of the FD,” it states.

The agreement shall remain in force for an initial period of five years. The dock was originally proposed to Sri Lanka by Pakistan. “It is not clear why the paperwork dictates to us where we should put the dock–in Trincomalee, not Hambantota,” the analyst commented. “If they are giving us something for free, we should have complete control of the asset.”

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