PRINCIPAL-AGENT THEORY AND THE INDIAN SUPPORT FOR TAMIL INSURGENCY IN SRI LANKA

Abstract

The paper analyses India’s intervention in the internal affairs of Sri Lanka as well as former’s overt or
covert support to Tamil rebels in the country. It utilizes the principal-agent theory that helps
understand as to why, how and under what conditions a state uses militant groups as its proxies in a
neighboring state. The study explores why and how New Delhi used Tamil rebels as its proxies in Sri
Lanka. India’s RAW provided finance, weapons, training, and sanctuaries to Tamil guerillas fighting
for a separate state in Sri Lanka. India also provided political support to the rebels and attempted to
cover its real objectives under the veil of a peace broker. It had diverse strategic, political, and
economic objectives and used terrorism as a tool of its foreign policy. It cultivated and used Tamils as
its proxies to undermine the security and territorial integrity of Sri Lanka and curtail the latter’s
sovereignty in order to exploit certain benefits and extract undue concessions.