Sri Lanka's powerful Rajapaksa dynasty consolidated its grip over power, with President Gotabaya Rajapaksa's elder brother Mahinda becoming the prime minister in 2020 - a year which seen the strengthening of Colombo's ties with New Delhi and revival of a key trilateral maritime dialogue involving India after a gap of six years.

The high hopes of an economic revival that accompanied the Rajapaksas' return to power turned into despair soon after the COVID-19 pandemic gripped the island in mid-March, plunging it into the worst financial crisis.

In September this year, Prime Minister Mahinda Rajapaksa, who won the general elections in August, held a "very successful" virtual summit with his Indian counterpart. President Gotabaya's administration has emphasised that its 'India-First' policy, which resonates well with India's 'Neighbourhood First' policy, would be the cornerstone of Colombo's outreach to New Delhi.

Prime Minister Mahinda Rajapaksa travelled to India in February on his first official trip abroad after being appointed to the office by President Gotabaya Rajapaksa, his younger brother. During his visit, Prime Minister Narendra Modi had announced financial assistance of USD 450 million to Sri Lanka including USD 50 million to fight terrorism.

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