The prime minister has moved from Thailand to Sri Lanka after the BIMSTEC summit. Sri Lanka being a BIMSTEC member itself the visit can be seen as an extension of the summit but is important because its a significant outreach by India to its troubled neighbourhood. After the uprising against the Rajapakse following runaway inflation and balance of payments crisis last year the island has been disturbed. Sri Lanka has been an important part of the string of pearls strategy of China and disturbs India’s dominance over the Indian Ocean. It is perfect in policy that India was the first state visit of the new Sri Lankan President Mr. Dissanayake and PM Modi is the first foreign leader to visit Sri Lanka after the crisis. The present dispensation and situation is conducive to resolve the Tamil question also as rhetoric is low on both sides. While president Dissanayake has categorically said that Sri Lanka would not allow its soil to be used against Indian interests, it would have to compete with Chinese cash.