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The Sri Lankan President Mahinda Rajapakse's four-day (27-30 December 2005) official visit to India was more than a mere ritual. The fact that Mahinda chose India for his maiden foreign tour after assuming executive presidency on 18 November 2005 once again highlights the significance of India in Sri Lanka's domestic and foreign policies. A decade and a half ago, this was unimaginable; bilateral relations then were at rock bottom, especially during Premadasa's regime. The credit for mending and lifting the relations to this level of cordiality goes to Chandrika Kumaratunga, ably assisted by Lakshman Kadirgammar and Ranil Wickremasinghe. Now, Indo-Sri Lankan relations have reached a new peak; enjoying domestic consensus in both countries.

Where does one place Mahinda's visit? Has it made an impact on bilateral relations? What does this visit mean for the peace process in Sri Lanka? The visit of the fifth Executive President is seen as a consolidation of Indo-Sri Lankan relations. Politically, after acknowledging continued "state of excellence" of relations, the two sides "reaffirmed their resolve to further consolidate and build on this strong and dynamic relationship." Enthused by this consolidation, Colombo wants to involve India in the peace process on par with the 'gang of four', the co-chairs of donor countries - US, EU, Japan and Norway. India has to exercise caution at this point. It does not require extraordinary intelligence to understand that it was because of its "hands-off" policy over the ethnic issue that mutual relations has reached this degree of cordiality. Norway is doing a commendable job and there is no need for India to walk into a minefield. It is uncertain whether India is acceptable to the LTTE as a facilitator. Even if it is, there are politico-legal predicaments due to the LTTE chief topping the wanted list of the Indian criminal justice system. India should not go beyond providing technical and financial assistance in rebuilding the war-ravaged northeast. Even this humanitarian gesture is being read as "partisan" by political circles in Tamil Nadu.

Economically, Mahinda Rajapakse returned hands full. Both countries have agreed to build on the success of the present India-Sri Lanka Free Trade Agreement into a Comprehensive Economic Partnership Agreement (CEPA). However, it is not clear when the negotiations - that have been taking place since October 2003 - would end in agreement. Once finalized, the CEPA is expected to "unleash the inherent synergies between the two countries." In this regard, India and Sri Lanka have accepted "to work for full realization of objectives" of the 13th SAARC summit - SAFTA and eventually market integration in the whole of South Asia. To Sri Lanka's benefit, India has decided to extend a concessionary credit line of US $100 million for the integrated development of the Colombo-Matara rail network. Apart from reaching an understanding on identifying joint ventures for the development of Trincomalee, both countries have agreed to set up a coal-based power project of capacity of 500 MW in Trincomalee. Potential for cooperation in the areas of agriculture, IT and renewable energy have been recognized.

Militarily, the Sri Lankan delegation was slightly disappointed, as the long-pending Defence Cooperation Agreement was not inked. The dilemma of UPA coalition, with parties from Tamil Nadu as major constituents was understandable. Moreover, with the Assembly elections round the corner, such an agreement would have been politically suicidal.

Do frequent joint military exercises signify something? Why has India increased its aid to Sri Lanka recently? Does this mean that India has tilted in favour of Colombo? What is the guarantee that humanitarian aid is not routed for defence purposes and indirectly used against the interest of Sri Lankan Tamils? These questions frequent rallies and political meetings in Tamil Nadu. Sensing trouble, Tamil Nadu chief minister Jayalalithaa had to backtrack on her appointment with Mahinda Rajapakse.

The increase in socio-cultural interaction between the two peoples is very promising. With the "open skies" policies adopted by the Indian government, Colombo is well connected by air to major Indian cities. Indians constitute by far the largest tourists to visit the island making use of the liberal visa regime. Indian goods, from petrol to sarees, are conspicuous in the Island. Sri Lanka is perhaps the only country where Indian goods compete successfully with the Chinese goods because of socio-cultural similarities. India's immediate help in the aftermath of the tsunami is well appreciated by the people. India's help in the construction of the new 150-bed hospital at Dickoya in the Central Province and rehabilitation of the tsunami-damaged Base Hospital in Trincomalee go a long way in sending a positive message to Sri Lankans. India has to build on this gross-roots cordiality and emulate it in other South Asian countries. Strong and prosperous neighbours are always advantageous to India.