Colombo: Indian Prime Minister Narendra Modi received a ceremonial guard of honor in Colombo on Saturday as his delegation signed energy and defense agreements with Sri Lanka, where New Delhi competes with China for greater influence.
Sri Lankan President Anura Kumara Dissanayake rolled out the red carpet for Modi and welcomed him with a 19-gun salute in the capital’s Independence Square.
He also conferred Sri Lanka’s highest civilian honor, Mithra Vibhushan, on the Indian prime minister.
“This prestigious honor, which was introduced in 2008, is conferred upon heads of states and government for their friendship, and honorable Prime Minister Modi highly deserves this honor. That is what we firmly believe,” Dissanayake said during a joint press conference with Modi, after the two countries signed seven cooperation agreements.
Modi arrived in Sri Lanka on Friday evening from Thailand, where he participated in the annual summit of BIMSTEC, a regional grouping of the seven countries on the Bay of Bengal.
He is accompanied by External Affairs Minister S. Jaishankar, National Security Adviser Ajit Doval, and Foreign Secretary Vikram Misri, who signed agreements on defense cooperation, information and technology sharing, and energy imports and exports with the Sri Lankan government.
Another energy deal was signed between India, Sri Lanka, and the UAE on cooperation in the development of Trincomalee port as an energy hub.
“We welcome the important agreements made in the area of defense cooperation. We have also agreed to work together on the Colombo security conclave and security cooperation in the Indian Ocean,” Modi said.
“The agreement reached to build a multiproduct pipeline and to develop Trincomalee as an energy hub will benefit all Sri Lankans. The Grid Inter-Connectivity Agreement between the two countries will create opportunities for Sri Lanka to export electricity.”
The Indian prime minister is the first foreign head of state to visit the island nation since Dissanayake and his leftist alliance swept last year’s presidential and parliamentary elections.
The visit comes as Colombo balances ties with India, its powerful neighbor, and China, its biggest lender, which at the same time is India’s main regional foe.
Dissanayake’s first foreign visit as president was to New Delhi in December, followed by a visit to Beijing in January, highlighting Sri Lanka’s careful diplomacy between the two powers.
“Within the Indian subcontinent and Chinese belt, Sri Lanka is caught as a strategic island — not only in the Indian Ocean — between these two giants,”  historian and analyst Dr. B.A. Hussainmiya  told Arab News.
“Their geopolitical interest is centering in the Indian Ocean and in the Himalayas, so Sri Lanka, being a very small country, cannot hold its strength unless it creates a balanced and nuanced diplomatic approach between these two powers to keep it afloat in the system.”

BEIJING: China said on Saturday “the market has spoken” in rejecting US President Donald Trump’s tariffs, and called on Washington for “equal-footed consultation” after global markets plunged in reaction to the trade levies that drew Chinese retaliation.
State-run Xinhua news agency also published the Chinese government’s stance, saying the US should “stop using tariffs as a weapon to suppress China’s economy and trade.”
Hong Kong Financial Secretary Paul Chan told public broadcaster RTHK, however, Hong Kong would not impose separate countermeasures, citing the need for the city to remain “free and open.”
“The market has spoken,” Chinese foreign ministry spokesperson Guo Jiakun said in a post on Facebook on Saturday. He also posted a picture capturing Friday’s falls on US markets.
Trump introduced additional 34 percent tariffs on Chinese goods as part of steep levies imposed on most US trade partners, bringing the total duties on China this year to 54 percent.
Trump also closed a trade loophole that had allowed low-value packages from China to enter the US duty-free.
This prompted retaliation from China on Friday, including extra levies of 34 percent on all US goods and export curbs on some rare earths, escalating the trade war between the world’s two largest economies.
Global stock markets plummeted following China’s retaliation and Trump’s comments on Friday that he would not change course, extending sharp losses that followed Trump’s initial tariff announcement earlier in the week and marking the biggest losses since the pandemic. For the week, the S&P 500 was down 9 percent.
“Now is the time for the US to stop doing the wrong things and resolve the differences with trading partners through equal-footed consultation,” Guo wrote in English on Facebook.
In a separate statement published by state-run Xinhua news agency, the Chinese government urged the US: “Stop using tariffs as a weapon to suppress China’s economy and trade, and stop undermining the legitimate development rights of the Chinese people.”
“China has taken and will continue to take resolute measures to safeguard its sovereignty, security and development interests,” said the government.
Washington “seriously undermines the rules-based multilateral trading system, and seriously undermines the stability of the global economic order,” it added.
Earlier on Saturday, several industry chambers of commerce ranging from those representing traders in metals and textiles to electronics, issued statements condemning the tariffs.
China’s chamber of commerce, representing traders in food products, called on “China’s food and agricultural products import and export industry to unite and strengthen cooperation to jointly explore domestic and foreign markets.”
Hong Kong’s Chan said it strongly opposes Trump’s actions and would continue to be “free and open.”
“Allowing a free flow of capital and acting as a free port are our advantages, and this will not change,” Chan told public broadcaster RTHK.
“The rules-based multilateral trading system is our core,” he said.