From Partner to Patron: How India is quietly taking Over Sri Lanka’s Western Province

 

Sri Lanka’s most commercially and politically vital hub is heavily influenced by India. From strategic ports and financial lifelines to digital identity, soft power, and trade deals, the Western Province is ground zero for India’s hybrid dominance — combining hard infrastructure control, financial leverage, digital entanglement, soft power, and embedded Indian-origin family networks.

 

India exerts influence in the Western province in

1. Strategic port/shipbuilding control
2. Economic & Finance
3. Digital infrastructure & cyber integration
4. Diplomatic & Political Networks
5. Cultural, Media & Educational influence
6. Health & Pharmaceuticals
7. Indian Origin family networks & Commercial power
8. Wholesale – Retail & Trade Dominance
9. India’s external partnerships
10. Indian partnerships with local companies
11. Defense partnerships & Training
12. Real estate & hospitality control

 

1. STRATEGIC PORT & SHIPBUILDING CONTROL

Type of Influence: Acquisition and control of Colombo Port terminals and shipbuilding infrastructure.

• Completed Projects:
  • India’sMazagon Dock Shipbuilders Ltd (under Indian Defence Ministry) acquired 51% of Colombo Dockyard PLC (CDPLC).
  • Indian firms involved in Colombo Port logistics modernization.
  • India proposed Adani Group-led investments in Colombo West Container Terminal.
• Ongoing Projects:
  • Continued Indian bids and expansion in Colombo Port terminals.
• India’s Strategic Objective:
  • Establish a maritime logistics and surveillance hub in Colombo.
  • Counter China’s BRI footprint (Port City, Hambantota).
• Dangerous Implications for Sri Lanka:
  • Loss of sovereign control over maritime chokepoints.
  • Port infrastructure could serve Indian military logistics under commercial guise.
  • Colombo risks becoming an Indo-China strategic flashpoint.

Sources: Business Standard 2022; IDSA 2023; MEA India Strategic Brief 2023

 

2. ECONOMIC & FINANCIAL LEVERAGE

Type of Influence: Debt aid, credit lines, trade dominance, and rupee-zone pressure.

• Completed Projects:
  • India extended over USD 4 billion during 2022 crisis (fuel, food, credit).
  • First to back IMF debt restructuring.
• Ongoing Projects:
  • Push for ECTA agreement (includes labor, land access).
  • Expansion of INR-based trade, new credit lines. Indian currency already in use
• India’s Strategic Objective:
  • Become Sri Lanka’s primary financial backer.
  • Bind Sri Lanka into the Indian rupee trade orbit.
• Dangerous Implications for Sri Lanka:
  • Loss of economic sovereignty.
  • Potential for land and job captureby Indian nationals via ECTA.
  • Demographic shifts through residency and land rights provisions.

Sources: Reuters 2022; Economic & Political Weekly 2023; Sri Lanka Ministry of Finance

 

3. DIGITAL INFRASTRUCTURE & CYBER INTEGRATION

Type of Influence: Integration of Sri Lanka’s digital ID, customs, and payment systems with India’s tech stack.

• Completed Projects:
  • MoUs signed on Digital Public Infrastructure
• Ongoing Projects:
  • Proposal for digital ID, e-gates, customs, and UPI-style payment systems under Indian frameworks.
• India’s Strategic Objective:
  • Control Sri Lanka’s digital ecosystem.
  • Enable cross-border data access and monitoring.
• Dangerous Implications for Sri Lanka:
  • Risk of cyber surveillance and data mining.
  • Loss of control over national identity systems.
  • Weakening of border sovereignty through shared biometric systems.

Sources: Tech Policy Reports 2024; HCI Colombo 2023

4. DIPLOMATIC & POLITICAL NETWORKS

Type of Influence: Political outreach via the Indian High Commission and regional diplomacy.

• Completed Projects:
  • High Commission in liaison with all major political parties in Colombo.
  • Political party training and soft diplomacy through civil society engagements.
• Ongoing Projects:
  • Regular diplomatic engagement with MPs, business leaders, media, religious leaders.
• India’s Strategic Objective:
  • Influence domestic policymaking and political appointments.
  • Create a pro-India narrative network inside the political system.
• Dangerous Implications for Sri Lanka:
  • Democratic subversion through foreign diplomatic leverage.
  • Sri Lanka’s foreign policy independence compromised.
  • Policy concessions made under bilateral pressure, not national interest.

Source: Indian High Commission Reports 2023; Diplomatic Trackers Sri Lanka

 

5. CULTURAL, MEDIA & EDUCATIONAL INFLUENCE

Type of Influence: Bollywood soft power, temple diplomacy, Hindi language promotion, scholarships, academic partnerships, and media collaboration.

• Completed Projects:
  • Bollywood events and Indian film promotions in Colombo – compromising local talent & impacting local film industry
  • Renovation and funding of Hindu temples and cultural centres – increasing prominence given to Hinduism over Buddhism in violation of Article 9
  • Establishment of Indian Cultural Centre (Colombo) offering Hindi, Bharatanatyam, and Yoga.
  • Scholarships for Sri Lankan students via ICCR and ITEC.
  • Opening of the Rabindranath Tagore Memorial Auditorium.
• Ongoing Projects:
  • Expansion of the mythical Ramayana Trail as a cultural tourism and religious diplomacy initiative usurping history & heritage of Sri Lanka as first priority
  • Hindi language programs, Sanskrit study modules in schools/universities.
  • Launch ofe-VidyaBharati digital academic exchanges and Indian Studies partnerships.
  • Collaboration with University of Colombo, Kelaniya, and other higher education institutes.
• India’s Strategic Objective:
  • Creating a“shared civilizational” narrative that aligns Sri Lanka’s history with Indian epics – an extremely dangerous long-term objective
  • Win youth and elite loyalty through scholarships, media influence, and cultural glamour.
  • Buildlong-term Indo-centric academic and ideological alignment.
• Dangerous Implications for Sri Lanka:
  • Erosion of Sinhala-Buddhist cultural identity, especially among youth and elites.
  • Curriculum and media exposure that downplay  local history and elevate pan-Indian myths.
  • Use of soft power as a tool for long-term political and social influence.

Sources: MEA India Cultural Diplomacy Brief 2023; HCI Colombo; SL Ministry of Higher Education; ICCR

6. HEALTH & PHARMACEUTICALS

Type of Influence: Indian pharmaceutical companies and health collaborations operate major distribution, marketing, and administrative offices based in Colombo, serving as national hubs. Indian healthcare aid, vaccine supplies, and medical research partnerships are coordinated through the Western Province.

Completed Projects:

• Establishment of Indian pharma distribution centers (Sun Pharma, Cipla, Aurobindo) in Colombo.
• Supply of COVID-19 vaccines and medical equipment during pandemic relief efforts.
• Health scholarships and training programs for Sri Lankan medical personnel coordinated through Colombo.

Ongoing Projects:

• Expansion of Indian pharma presence in retail pharmacies and hospitals nationwide.
• Joint health research initiatives with Colombo universities and institutions.
• Continued vaccine and medical aid programs managed via Indian diplomatic channels in Colombo.

India’s Strategic Objective:

• Position Colombo as the central node for Indian healthcare influence across Sri Lanka.
• Build long-term dependency on Indian pharmaceuticals and health aid.
• Use healthcare diplomacy to cultivate goodwill and policy influence.

Dangerous Implications for Sri Lanka:

• Risk of pharmaceutical supply chain dependence compromising national health security as well as hela medicines & hela treatments.
• Potential influence on public health policy via aid and partnerships.
• Subtle shaping of health priorities aligned with Indian interests.

Sources:

• Ministry of Health Sri Lanka 2023 Reports
• Indian High Commission Colombo Health Division
• Pharmaceutical Industry Analytics Sri Lanka 2024

 

7. INDIAN-ORIGIN FAMILY NETWORKS & COMMERCIAL POWER

Type of Influence:
Dominance in wholesale, retail, textiles, finance, real estate, hospitality, plantation exports, and political lobbying through legacy Indian-origin families primarily based in the Western Province.

Well-Established Indian-Origin Families in Western Province:

Family / Community	Sectoral Control Areas
Colombo Chetty Families	Real estate holdings, customs clearing, shipping agencies, finance, historical political brokerage.
Moosajee Family	Premium men’s apparel, formalwear, textile trade (Moosajee Sons).
Pestonjee Family (Parsi origin)	Consumer electronics and appliances via Abans Group (exclusive distributor for LG, Electrolux).
Pestonjee Family (A.A. Pestonjee)	High-end furniture, household appliances, early commercial ventures (distinct from Abans).
Nadar Community	Traders in hardware, household goods, rural finance, pawn brokerage, and inter-provincial transport.
Bohra & Khoja Muslim Merchants	Prominent in jewelry, textiles, gold loans, and Colombo-based shipping trade.
Zainudeen (Zam Gems)	Gem exports, textile trade, hotels, and real estate (with India/Middle East linkages).
Sindhi Traders	Textile imports, wholesale provisions, footwear, and commercial finance.
Akbar Brothers	Tea plantations, exports (Sri Lanka’s largest tea exporter), logistics, freight forwarding.
Gardiner Family (Tamil Catholic origin)	Cinema (Ceylon Theatres), CT Holdings, real estate (Gardiner’s Place), KFC, Keells Super, and hospitality ventures.
Adamally Family (Bohras)	Import-export of marine hardware, steel, cement, and chemicals.
Gnanam Family	Construction, cement, steel, and heavy industry via St. Anthony’s Group and Tokyo Cement.
Adamjee Lukmanjee Family	Desiccated coconut, spices, edible oils, and agro-exports — one of Sri Lanka’s oldest Indian-origin trading houses (est. 1865).

India’s Strategic Objective:

• Use trusted, well-rooted family networks as economic proxies and influence brokers.
• Leverage these communities to push Indian trade, import chains, and policy lobbying.
• Secure discreet intelligence channels on Sri Lankan markets, politics, and business trends.
• Promote Indian-style business consolidation and franchising across Colombo and beyond.
• Utilize families to deepen control in exports, property, retail, logistics, and soft power sectors.

Dangerous Implications for Sri Lanka:

• Foreign-influenced control over critical domestic commerce, export earnings (tea, spices), and retail sectors.
• Policy capture via informal lobbying and elite business networks.
• Strategic land and property accumulation in Colombo and plantation districts.
• Cultural and economic Indianization of lifestyle, consumer behavior, and enterprise models.
• Backdoor diplomacy via business-community ties, bypassing official state mechanisms.

Sources:

• Historical Trade Registry, Department of National Archives
• Colombo Urban Merchant Studies, University of Colombo (2022)
• Sri Lanka Business & Company Registry Reports (2023–2024)
• Indian Diaspora Commerce Papers (SAARC Economic Forum, 2023)

8. WHOLESALE, RETAIL & TRADE DOMINANCE

Type of Influence: Indian brands, trade routes, and import-export controls.

• Completed Projects:
  • Indian products dominate essential imports (medicines, textiles, rice, spices).
• Ongoing Projects:
  • Expansion of Indianretail chains, pharmacies, and logistics nodes.
  • Push to establish direct sea and air cargo routes to Indian ports.
• India’s Strategic Objective:
  • Control Sri Lanka’sconsumer supply chains.
  • Ensure Indian goods have preferential access and pricing.
• Dangerous Implications for Sri Lanka:
  • Supply chain dependence.
  • Undermining of local production and SMEs.
  • Strategic vulnerability during regional tension.

Sources: Trade Ministry SL; Indian Export Council 2023

Summary Table: India’s Strategic Penetration in Western Province

 

Sector	India’s Strategic Objective	Danger to Sri Lanka
Ports & Maritime	Naval/logistics dominance	Loss of control, Indo-China rivalry hotspot
Economic & Trade	Financial dependency, rupee zone	Sovereignty loss, job/land risks, demographic shifts
Digital & Tech	Cyber dominance, data access	Data breaches, population surveillance, digital colonization
Diplomacy & Politics	Policy capture, soft regime change	Foreign subversion of democratic choices
Culture & Media	Regional identity framing, Hindu revivalism	Youth reorientation, erosion of Sinhala-Buddhist culture
Business Families & Retail	Proxy economic control	Monopoly formation, political lobbying, urban ownership shifts
Education & Academia	Indo-centric intellectual base	Curriculum hijack, identity dilution, soft power entrenchment

 

 

9. INDIA’S EXTERNAL STRATEGIC PARTNERSHIPS 

Type of Influence: Indian influence has significantly increased through QUAD alliances (notably with Japan, the US, Australia), bilateral strategic deals (e.g., with Japan) selling its shares in Colombo Dockyard is a case in point where these partners are coordinating infrastructure & financial control over Sri Lanka.

Ongoing Projects:

• India-Japan collaboration in Sri Lanka’s power grid and energy transitions.
• QUAD-driven strategic mapping of Indian Ocean maritime logistics— Colombo is key.
• Regional supply chain realignments(eg: India-US-Japan reshoring industries from China via Sri Lanka).

 India’s Strategic Objective:

• Partnership leverage to outcompete China in Sri Lanka.
• Secure Western geopolitical cover for Indian expansion in Sri Lanka.
• Tie Sri Lanka’s strategic decisions to QUAD’s Indo-Pacific vision.

Dangerous Implications for Sri Lanka:

• Sri Lanka becomes a pawn in the US-India vs China rivalry.
• Loss of true non-alignment as QUAD interests override Sri Lanka’s sovereign priorities.
• Increased risk of foreign-backed regime destabilization if Sri Lanka resists alignment.
• Energy, maritime, and cyber infrastructure risk becoming integrated into a larger geopolitical agenda beyond Sri Lanka’s control.

Sources:

• Colombo Dockyard Ownership Reports 2023
• MEA India-Japan Strategic Dialogue Brief
• Indo-Pacific Maritime Roadmap (QUAD 2024)
• Reuters / Nikkei Asia / Sri Lanka Strategic Policy Review 2024

 

10. INDIAN PARTNERSHIPS WITH LOCAL COMPANIES

Type of Influence: Strategic joint ventures and collaborations between Indian firms and Sri Lankan counterparts across key economic sectors—energy, logistics, finance, agro‑industry, and hospitality.

Completed Projects:

• Colombo West Container Terminal
  Adani Ports(India) partnered with John Keells Holdings (34%) and Sri Lanka Ports Authority (15%) to own and operate the terminal
• Colombo Dockyard PLC
  Mazagon Dock Shipbuilders Ltd(India) acquired 51% share, taking control of the shipbuilding facility
• Lanka IOC (LIOC)
  Indian Oil Corporation subsidiary in partnership with CEYPETCO, dominates fuel storage and distribution.
• Watawala Plantations PLC – Tata Tea JV
  Since 1996,Tata Tea Ltd operates alongside Watawala in managing tea, rubber, and palm oil estates
• Akbar Brothers Ltd
  Indian-origin founding family controls Sri Lanka’s largest tea export company across Colombo and Middle East markets

Ongoing Projects:

• Adani Green Energy + Ceylon Electricity Board (CEB)
  Joint renewable energy projects (solar farms in Mannar/Pooneryn).
• Tata Consumer Products
  Plantation ownership—51 tea estates in Sri Lanka under Tea Board JV
• IT partnerships
  Indian firms like TCS, Infosys, HCL collaborate on digital ID, banking systems, and e-governance with Sri Lankan agencies (ICTA, banks).
• Finance • DFCC Green Bonds
  Sri Lankan banks issuing green bonds in India (GIFT IFSC), facilitating sustainable finance collaboration
• Bharti Airtel & Tata Communications
  Telecom expansion via joint ventures and digital infrastructure services
• Mitsui & Co – Heritage Teas JV
  Japanese-Sri Lankan JV in tea flips potential for Indian cross-investment

 India’s Strategic Objective:

• Industrial embedding: Insert Indian-led operations into strategic sectors—ports, fuel, energy, telecom, finance, plantations.
• Market integration: Use joint ventures toalign Sri Lanka’s supply chains and infrastructure with Indian standards and control.
• Institutional leverage: Strengthen indigenous pro-India business lobbies within Sri Lanka’s corporate landscape.
• Cross-border positioning: Convert Sri Lanka into a regional logistical and economic ally under India-led frameworks (eg: Adani terminal).

Dangerous Implications for Sri Lanka:

• Critical infrastructure partially controlled by foreign entities.
• Loss of decision-making autonomy within energy, finance, and digital sectors.
• Policy distortions favoring Indian capital, disadvantaging local competitors.
• Strategic adjustment of supply chains toward India, reducing diversity and resilience.
• Integration into India-centric geopolitical webs, increasing Sri Lanka’s dependence.

Summary Table – Partnerships

Sector	Indian Partner	Local Partner	Strategic Outcome
Ports	Adani Ports	John Keells Holdings, SLP Authority	Control of transshipment hub
Shipbuilding	Mazagon Dock Ltd	Colombo Dockyard	Strategic repair capacity
Fuel	Indian Oil Corp (LIOC)	CEYPETCO	Energy distribution dominance
Tea Plantations	Tata Tea, Tata Consumer	Watawala, Sri Lankan estates	Input-output control, branding
Energy	Adani Green, Tata Power	CEB	Power sector dependency
IT & Telecom	TCS, Infosys, Bharti, Tata	ICTA, national banks, mobile operators	Digital systems integration
Finance	Indian institutions	DFCC, local banks	Financial linkage via green bonds

11. DEFENSE PARTNERSHIPS & TRAINING

Type of Influence: Indian defense cooperation is administered mainly through Colombo, encompassing supply contracts, training exchanges, joint exercises, and intelligence sharing, enabling India to maintain a strategic military presence.

Completed Projects:

• Signing of bilateral defense cooperation agreements via Colombo-based officials.
• Indian military training scholarships for Sri Lankan officers coordinated through Colombo.
• Transfer and supply of Indian defense equipment routed through Colombo ports.

Ongoing Projects:

• Regular joint naval and army exercises coordinated from Colombo command centers.
• Expansion of intelligence sharing and counter-terrorism collaboration.
• Continued defense training programs hosted in India for Sri Lankan personnel.

India’s Strategic Objective:

• Cement Colombo as the operational hub for Indian defense influence in Sri Lanka.
• Develop close military ties that enable Indian strategic leverage over Sri Lankan security policies.
• Use training and joint exercises to shape Sri Lankan defense posture in favor of Indian regional dominance.

Dangerous Implications for Sri Lanka:

• Loss of independent military decision-making due to Indian influence.
• Increased risk of intelligence penetration and surveillance.
• Potential compromising of Sri Lanka’s sovereignty in defense and security matters.

Sources:

• Ministry of Defense Sri Lanka 2023
• Indian High Commission Colombo Defense Desk
• Defense Cooperation Agreements 2023

12. REAL ESTATE & HOSPITALITY CONTROL

Type of Influence: Strategic acquisition and long-term lease of prime land, hotels, apartments, and urban commercial properties through direct Indian investment, Indian-origin business families, and joint ventures.

Completed or Ongoing Acquisitions:

• Taj Samudra (Colombo)– Owned and operated by Indian Hotels Company Ltd (Tata Group).
• Taj Bentota– Landmark southern coastal hotel under Indian ownership.
• CG Hotels / Jetwing tie-ups– Co-managed Indian real estate & hotel investments.
• Hemas & Indian hospitality partners– Ventures in wellness and tourism infrastructure.
• Several Indian real estate investorslinked to Indian-origin Sri Lankan businessmen in Colombo, Nuwara Eliya, and Negombo.

India’s Strategic Objective:

• Establishpermanent physical presence in elite economic zones (Colombo, Galle, Nuwara Eliya).
• Use hotels as intelligence outposts, soft power launchpads, and business lobbying venues.
• Acquire beachfront, heritage, and hill country properties to control tourism narrative and earnings.
• Expand India-linked halal, wellness, and yoga-based tourism under their cultural footprint.
• Facilitate land acquisition under long leases, bypassing direct ownership bans through local proxies.

Dangerous Implications for Sri Lanka:

• Strategic real estate in Colombo and coastal areas falls under foreign control.
• Indian tourist flow gets channelled into Indian-owned establishments, depriving local SMEs.
• Land near sensitive military zones or ports may be acquired via commercial guise.
• Hill country and heritage towns (Nuwara Eliya, Kandy) risk cultural and economic Indianization.
• Influx of Indian managers, chefs, tour agents, guides, and staff shifts demographic & labor dynamics.

Sources:

• Sri Lanka Tourism Investment Reports (2023)
• BOI Investment Board Filings
• Real Estate Watch Colombo (2024)
• Hotel Ownership Registries, Ministry of Lands
• Tata Group Annual Reports (IHCL)
• Local press exposés on foreign hotel ownership in Colombo/Galle/Nuwara Eliya

Sri Lanka’s commercial capital & nerve centre is the Western Province. As the examples above show, it is today the epicenter of India’s strategic control & influence.

 

What appears as cooperation on the surface—ports, credit lines, digital ID, health aid, or cultural exchange—is, in substance, a multi-dimensional model of dependency-building. Have these not been mapped by Sri Lanka’s foreign ministry, national defense think tanks & those tasked to secure Sri Lanka’s sovereignty?

 

India’s actions in the Western Province are not accidental or ad-hoc. They follow a clear geostrategic doctrine that is expanding its tentacles across the provinces of Sri Lanka. When Sri Lanka becomes economically dependent, digitally integrated, dominated logistically, aligned ideologically across society through joint ventures, family networks, defense pacts, cultural absorption – what is the ultimate outcome for a nation that has boasted of never been invaded except betrayed by their own. Are we not seeing how the strategic “partner” is becoming Sri Lanka’s strategic “patron”. Even if the Indian origin families cast their allegiance off shore, does the political class & national security institutions not comprehend the dangers?

 

Today, the enemy is not coming in uniforms or with guns. It is operating digitally, through acquisitions, loans, partnerships, scholarships, culture, exchange programs, apps. Do we have strong legislation in place to safeguard Sri Lanka or are our legislators meekly changing legislation with secret pacts. Are we not returning to the theory that Sri Lanka was never invaded but were ceded by our own?

 

Imagine if Western province eventually ceases to be governed in Sri Lankan interest & by Sri Lankans?

 

Recommendations / National Action Imperatives:

1.    Conduct a national security review of all foreign digital infrastructure proposals.

2.    Freeze Indo-Lanka joint ventures in strategic sectors pending sovereignty audits.

3.    Audit and publish real estate ownership in Colombo by Indian-linked entities.

4.    Reassert cultural primacy of Buddhism under Article 9 in public diplomacy and education policy.

5.    Establish a parliamentary oversight committee on foreign influence and soft power infiltration.

 

 

 

Shenali D Waduge