India Cedes Katchatheevu to Sri Lanka to Settle Sovereignty Dispute
• India had a weak legal case for sovereignty over Katchatheevu compared to Sri Lanka based on historical records and maps.
• Sri Lanka pressed India to settle the issue quickly or refer it to international arbitration.
• India cited national security interests due to a pro-China lobby in Sri Lanka and potential oil discoveries.
• Karunanidhi was reluctant to publicly support ceding the island but privately assured he would not inflame opposition.
• India wanted to avoid third party arbitration which tended to favor smaller countries over bigger ones.