India still has considerable catching up to do with Sri Lanka on per capita income despite its rise as an economic power, Geopolitics Expert Prof. C. Raja Mohan said, pointing to the two countries’ sharply different income levels.
‘We talk about rising India, but we have a long way to go. In fact, we might have a long way to go catching up with Sri Lanka. Sri Lanka has a $ 5,000 per capita. India is still at $ 2,800.’
Speaking at the Lanka India Business Association’s India Calling forum, Prof. Raja Mohan said India’s size nevertheless gave it greater aggregate economic weight, with domestic economic gains translating into a larger international impact.
He said the globalisation model of the past three decades was fragmenting, with geopolitics increasingly influencing economic decisions and greater emphasis being placed on regional engagement, trusted partners and resilient supply chains.
Prof. Raja Mohan said this strengthened the case for greater India-Sri Lanka economic cooperation, but argued that such integration should be determined by economic outcomes rather than proximity alone.
‘The question that must be critical for all of us is, does it increase your capability? Is it cheaper? What are the long-term costs of a particular way of approaching things?’
He said investment decisions should consider the cost of capital, borrowing and long-term equity rather than proceed on the assumption that ‘all money is welcome’.
Prof. Raja Mohan said closer India-Sri Lanka economic integration did not have to depend on broader South Asian mechanisms such as SAARC, arguing that bilateral policy could advance cooperation between two countries separated by about 50 kilometres.
He also placed responsibility on New Delhi to make regional integration deliver economic gains.
‘India, as the largest economy in the region, must do more to be able to become much more attractive for our neighbours to interact with India as well as to be able to create more substantive positive outcomes for the region as a whole.’
Prof. Raja Mohan said artificial intelligence offered another area for India-Sri Lanka cooperation, including preparing workforces and societies for changes in production and economic activity.
On security, he said India would have to be sensitive to Sri Lanka’s security concerns and sovereign rights, while Sri Lanka would also need to consider India’s security interests.
He called for greater cooperation among Sri Lanka, India and other Indian Ocean countries to strengthen regional capacity amid major-power rivalry.
‘The age of AI offers an unprecedented level of prosperity. In a fragmenting world of global economy, the need for more regional collaboration, building on existing synergies, especially between close neighbours, becomes very, very important,’ Prof. Mohan said.