One question that may trigger increased congressional interest, for example, is whether what some observers may see as inadequate progress in furthering ethnic reconciliation should inhibit the United States' further developing bilateral relations, especially at a time when China has been seeking to develop and expand its trade, investment, and geopolitical influence in Sri Lanka and the broader Indian Ocean region. Civil War and Aftermath

From 1983 to 2009, Sri Lanka's political, social, and economic development was constrained by ethnic conflict and war between the government and the Liberation Tigers of Tamil Eelam (LTTE), also known as the Tamil Tigers. The war claimed over an estimated 70,000 lives. This result was affirmed in parliamentary elections later in 2015 that led to the formation of the National Unity Government. President Sirisena has pledged to reduce the authority of the executive presidency and has ushered in a period of constitutional and political reform. Main Political Parties

Sri Lankan politics is dominated by the right-of-center United National Party (UNP) and the socialist Sri Lanka Freedom Party (SLFP). The current government is a national unity government of Prime Minister Ranil Wickremesinghe's UNP and President Sirisena's SLFP. Passage of the bill was also one of President Sirisena's 2015 campaign pledges. The Sirisena government has done more, such as allowing the national anthem to be sung in Tamil, returning some lands taken from Tamils during the war, lifting a ban on Tamil groups, and creating an office of missing persons. Many observers believe long-term peace and harmony between the Sinhalese majority and the Tamil minority necessitates a reconciliation of grievances. Remittances are a significant part of Sri Lanka's economy. Geopolitical Context

Sri Lanka is situated near strategically important sea lanes that transit the Indian Ocean. According to some observers, one possible response to these questions is that, while China's trade and investment activities in Sri Lanka are not a direct threat to American interests, it is not in America's interest to have its, or its friends' and allies', influence marginalized to the point of irrelevance in Sri Lanka given Sri Lanka's strategic position near critical sea lanes. More specifically, Congress may be interested in exercising oversight in a number of areas including the Administration's policy toward Sri Lanka with regard to support for democratic reform, ethnic reconciliation, human rights and transitional justice, geopolitics related to India and China in the Indian Ocean region, trade and investment, military-to-military relations, and the environment. The United States has also provided over $2 billion in development assistance to Sri Lanka since 1948. The United States is Sri Lanka's single largest market with approximately 25% of the nation's exports reaching the United States. The United States and Sri Lanka adopted a Joint Action Plan to boost bilateral trade at the 12 th U.S.-Sri Lanka Trade and Investment Framework (TIFA) meeting in April 2016. The Obama Administration has sought to broaden and deepen the U.S. relationship with Sri Lanka, and the inaugural U.S.-Sri Lanka Partnership Dialogue was held in Washington, DC, in February 2016. Key objectives highlighted in the FY2017 Congressional Budget Justification for Sri Lanka include the following:
Sri Lanka accelerates reconciliation between the majority population and ethnic and religious minorities with the assistance of U.S. programs. Questions for Congress

Looking forward, Congress may consider a number of questions as it considers legislation and exercises oversight of policy related to Sri Lanka: 
Does Sri Lanka's strategic significance merit stronger bilateral ties with Colombo? What is the nature of Sri Lanka's political and constitutional reform process? Should the United States continue to provide democracy assistance? Is the Sirisena government's progress on ethnic reconciliation sufficient to justify enhanced collaboration and increase U.S. foreign assistance or should such assistance be diminished pending further improvement in this area? Is there a danger that by pushing Colombo too hard on ethnic reconciliation the United States and the international community could unintentionally limit the Sirisena government's political room for maneuver to achieve moderate efforts of reconciliation? What are China's strategic interests in Sri Lanka and the Indian Ocean region? Are these potentially a threat to U.S. interests? Presidential and Parliamentary Election Results
Sri Lanka is a nation of geopolitical importance despite its relatively small size. Strategically positioned near key maritime sea lanes that transit the Indian Ocean and link Asia with Europe and Africa, Sri Lanka's external orientation, in particular its ties to China, are of great interest to nearby India. Some observers view China's involvement in the Sri Lankan port at Hanbantota to be part of Beijing's strategy to secure sea lanes through the Indian Ocean.
United States-Sri Lanka relations are expanding significantly, creating new opportunities for Congress to play a role in shaping the bilateral relationship. For example, the United States is increasing its foreign assistance to Sri Lanka while seeking to further develop trade between the two countries. The total foreign assistance request in the FY2017 Congressional Budget Justification for Congress for Foreign Operations is $39,797,000 compared with actual foreign assistance provided in 2015 of $3,927,000. In February 2016, the United States and Sri Lanka held their inaugural Partnership Dialogue, while in April 2016, the governments held their 12th Trade and Investment Framework Agreement (TIFA) talks. The United States is Sri Lanka's major export destination. Recent U.S.-Sri Lankan engagement has been prompted in part by a fundamental shift in Sri Lanka's domestic politics since early 2015. This shift has occurred against the backdrop of the more reconciliatory and reform-oriented approach of President Maithripala Sirisena of the Sri Lankan Freedom party (SLFP) and the "National Unity Government" he formed with Prime Minister Ranil Wickremesinghe of the United National Party (UNP).
Under Sirisena's predecessor, former President Mahinda Rajapaksa (2005-2015), U.S.-Sri Lankan relations deteriorated, especially during the closing phase of Sri Lanka's civil war between government troops and the forces of the Liberation Tigers of Tamil Ealam (LTTE). The war ended in 2009 after 26 years, having claimed over 70,000 lives. Disagreements between the United States and Sri Lanka stemmed from human rights concerns about how the Sri Lankan government fought the LTTE, particularly at the end of the war.
In presidential and parliamentary elections of January and August 2015, respectively, voters ousted the Rajapaksa regime and brought President Sirisena and Prime Minister Ranil Wickremesinghe to power in what the two major parties call a National Unity Government. Some observers assert that this significant reorientation of the Sri Lankan government has created opportunities for Colombo to restore and enhance the country's democracy through constitutional and political reform and achieve reconciliation with the Tamil minority. President Sirisena's government has also sought to rebalance its relationship with China.
Human rights concerns remain, especially those related to implementing United Nations-supported transitional justice measures. Progress has been made in a number of areas including, for example, measures to create an office of missing persons and freedom of information legislation, but some observers indicate that more needs to be done to achieve lasting reconciliation with the Tamil minority. They deem such reconciliation to be necessary if Sri Lanka is to attain long-term peace and stability.
As Congress considers legislation and exercises oversight of policy related to Sri Lanka, Members and committees may consider a number of questions. Is Sri Lanka's strategic significance such that the United States has an interest in developing stronger bilateral ties with Colombo? What is the nature of Sri Lanka's political and constitutional reform process? Should the U.S. continue to provide democracy assistance? If so, how can it be most effectively structured? Is the Sirisena government's progress on ethnic reconciliation sufficient to justify enhanced collaboration and increase U.S. foreign assistance, or should such assistance be withheld pending further improvement in this area? Is there a danger that by pushing Colombo too hard on ethnic reconciliation the U.S. and the international community could unintentionally limit the Sirisena government's political room for maneuver to achieve moderate efforts of reconciliation or political reform? What are China's strategic interests in Sri Lanka and the Indian Ocean region? Are these potentially a challenge to United States interests?