@Gibbs
First disclaimer. I am half Tam.
The SL episode has to be viewed from 2 perspectives. One, the US has good ties with SL during that period an two, we did not have very good ties with US, in that period. The episode of the US carrier was only a decade old. The last thing, India wanted was to have the US in its backyard. The backing of the LTTE needs to be seen from this perspective. To put it further in perspective, we backed the LTTE like the Pakistanis backed the Mujahideen in Afghanistan.
The decision of RG, to get out of the situation and back the SL government was probably the second best decision he took. Second, only to his economic decision of the Long Term Fiscal Policy document. Looking back, we probably got out better than the Pakistanis got out of Afghanistan. But, our intervention caused to a smaller scale a problem in TN. This is not going to go for a generation. Though sounding harsh, the current generation of LTTE backing politician has to die in TN for things to evolve to the next level.
Having seen the stupid waste of time and talent, that it did to a couple of my friends, I have only utter contempt for the LTTE and what it stood for. How I rejoiced and smiled, when the news broke that the SLA had killed him.
Coming to the next thing, the current GoI and policy is no longer aligned to parties like the Vaiko faction, amply evident by the distancing of the NDA from it. No small measure being Dr Swamy's lobbying, that, Vaika was acting against national interests by backing the militant sections of the LTTE.
Indian policy towards SL is changing. To the Sri Lankans, this is less to do with Pakistan. A little to do with China. Believe me, China has only sped up the process, not made India change directions. For India, to prosper, we need stable boundaries and co-operative partners. Without this we cannot develop at the pace we wish to. The need from India, which by the way is already happening is to push for closer relationships with Bangladesh, Nepal and SL. How is this possible?
a. Visa free entry for Sri Lankans for a period of 10 days.
b. Working permit allowance for Sri Lankans wanting to work in India, renewable every 5 years.
c. Allowing SL students to apply to premier Indian institutes, by having a specific quota for them. Provided they meet the minimum cut off criteria. These students should be encouraged with scholarships.
d. Implementing a ferry service to the south of Sri Lanka from Kerala, for the time being.
e. Increasing co-operation with the SAARC in the area of disaster management. Build a unified command to respond to natural disasters with Bangladesh and SL. If we had the resources, build a LPD which acts as a humanitarian hospital ship, supported by cutters and personnel trained specifically for the same. The ship will be manned by personnel from all 3 countries.
If India, wants to be a major power in the IOR, good and happy relations with both Bangladesh and SL will have to be a cornerstone of Indian foreign policy.