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India SriLanka - Defense deal

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March 13, 2017

What is the issue?

  • Recently the Sri Lankan government made the announcement that it was seeking to procure between eight and 12 combat aircraft to replace its ageing air force assets.
  • This selection process can offer India a unique opportunity both to strengthen military ties with Sri Lanka as well as to make a breakthrough into the aviation export market.

What is India’s experience?

  • The sale of Dhruv helicopters to Ecuador was widely hailed.
  • However, after a number of crashes, the helicopters were withdrawn from use, citing, among other things, poor spares support from Hindustan Aeronautics Limited (HAL).
  • The sale of Chetaks to Suriname was plagued by poor contract management and “financial and administrative obstacles” leading to a delay in delivery of the helicopters.
  • Subsequent supplies of aircraft have been gifts or heavily discounted sales of Chetak and Dhruv helicopters and Dornier Do-228 surveillance aircraft to the Maldives, Mauritius, the Seychelles, Nepal and Bhutan.

What is the experience with Sri Lanka?

  • In the past, India had provided 24 L-70 guns, 24 battle-field surveillance radars, 11 upgraded Super Fledermaus radars, four Indra- I & II radars and 10 mine-protected vehicles to assist in the defence of SLAF air bases.
  • These proved useful against air attack by the former Liberation Tigers of Tamil Eelam (LTTE)’s air wing consisting of armed microlight aircraft as well as from LTTE infiltrators.
  • India is already a major supplier to the Sri Lankan Navy with two 105m Offshore Patrol Vessels under construction at Goa.
  • India is geographically proximate to Sri Lanka and Indian Air Force support facilities can be made use of.
  • Furthermore, India has had a somewhat low-key but nonetheless important role in equipping the SLAF.

What is India’s potential in arms export?

  • If the SLAF desire a supersonic multi-role aircraft, India’s Tejas Mk.1, despite its still being in the developmental phase, could be a viable option.
  • The aircraft has already demonstrated significant capabilities in the air-to-air and air-to-ground roles and the limited number of aircraft being sought by the SLAF lends itself to relatively easy accommodation with HAL’s production schedule and capacity.
  • On the other hand, if the SLAF is seeking a cost-effective multi-role aircraft with a relatively low operating cost – and is willing to forego the “prestige” of supersonic aircraft - then the BAE-HAL Advanced Hawk has the potential to meet this requirement.
  • The Advanced Hawk has significant combat capabilities with provision for Brimstone air-to-ground missiles and ASRAAM air-to-air missiles.

What is the way ahead?

  • If India is desirous of securing this order, it must not treat it as a purely transactional arrangement.
  • The export of Indian combat aircraft would be a major step forward for Indian arms exports and, as such, India should be flexible in respect of prices.
  • India should also not hesitate to offer attractive financing packages and lines of credit at low interest rates to encourage Sri Lanka to “buy Indian”

 

Source: IDSA

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