With Sri Lanka’s arms procurement from Pakistan touching alarming levels in the past year, crossing $80 million, India has urgently prepared a soft loan package of $100 million for Sri Lanka to make defence purchases from India. However, the rider on selling only defensive equipment is likely to continue.Given that the Sri Lankan Armed Forces are involved in a full-fledged battle with the LTTE, Pakistan still seems a viable option. The reason: Pakistan last month agreed to supply 150,000 mortar ammunition and the same number of grenades along with a range of other smaller equipment from its war reserves.In fact, Sri Lankan Army Chief Gen Sarath Fonseka was in Rawalpindi to meet his Pakistani counterpart Gen Ashfaq Parvez Kayani last week. He even visited the Pakistan Ordnance Factories at Wah and is learnt to have had a detailed discussion on future supplies, which are largely for offensive purposes.Currently, among the important ammunition, Sri Lanka is in the process of buying 300 more MK 82 and MK 83 aerial bombs for its Air Force from the Air Weapons Complex (AWC), Pakistan, at a cost of over $2 million. It was one of these bombs that killed Tamil Selvam, the head of LTTE’s political wing.Colombo, sources said, has made it clear to New Delhi at various levels that it is in dire need of more arms and ammunition and if there are reservations in India to fulfil these requirement, then it would have no option but to try importing from other countries including Pakistan.Constrained by domestic political pressure from Tamil parties, India is currently focusing on finalising a Comprehensive Economic Cooperation Agreement ahead of Prime Minister Manmohan Singh’s visit to Sri Lanka for the SAARC Summit in July. But the increase in involvement of Pakistan and China in Lankan defence agencies is becoming a cause of worry. The growing defence relationship between Sri Lanka and Pakistan is reflected in the fact that the latter conducted 180 training courses in 2007 for Sri Lankan military personnel. Of these, 83 were for the Sri Lankan Air Force while 75 and 22 courses were for the Army and Navy respectively. According to Indian assessment, the sudden spurt in Sri Lankan Air Force operations can be attributed to this material and training support from Pakistan. For instance, teams from AWC have visited Sri Lanka frequently last year to impart even basic training like handling of ammunition and storing them.Consider these:• Sri Lanka Army is negotiating purchase of over 10,000 G3 rifles from Pakistan since January.• The Lankan Army has sought urgent supply of artillery and mortar ammunition. Instructions have been passed to its mission in Islamabad to finalise procurement of ammunition worth $9 million.• Sri Lankan Navy is to receive 100 122-mm high-explosive multi-barrel rocket launchers (Yarmuk) from Pakistan. Intelligence sources say the schedule of payments is being worked out.• Pakistan has released 90,000 mortar bombs of different types from its war reserves. A three-member Lankan team was recently there to verify if the stocks were produced after 2000. With the scope of cooperation expanding between both countries, a serious rethink is underway in India on how to overcome internal political compulsions, to ensure that defence cooperation between India and Sri Lanka does not take the back seat.Top officials admit that options are limited for India, but at the same time make the point that the Rajapakse government too must reduce the violent attacks on the Tamils and look to start a political dialogue soon. India has been assisting in the inter-party dialogue to forge a consensus on a devolution package in Sri Lanka for the Tamils without affecting territorial integrity.