See here for the Economist's story on worsening relations between Tamil Nadu and Sri Lanka.
Extracts reproduced below:
"Tamil Nadu’s hostility to Sri Lanka is growing more overt."
"Gotabaya Rajapaksa, Sri Lanka’s powerful defence secretary, growls that Tamil Nadu dictates policy to feeble Delhi. Airlines have cut flights. Traders who once bustled to-and-fro now stay at home. Textile shops in Colombo say stocks are running short."
"On March 29th Salman Khurshid, the foreign minister, rebuffed suggestions to label Sri Lanka unfriendly, let alone impose sanctions. Instead India continues as a big aid donor, trading partner and investor. However, demands to boycott a big Commonwealth summit to be held in Colombo, the Sri Lankan capital, in November may grow too strong to resist."
"Growing evidence of massacres in the war and cover-ups since are widely discussed in India. Off the record, a Sri Lankan official now admits the family of the Tamil rebel leader, Velupillai Prabhakaran, was “wiped out”. Other stout denials may also be revised."
"The government also still shows signs of hostility to Sri Lankan Tamils. Leading politicians now look ready to use sparring with Tamil Nadu as an excuse to scrap plans to devolve power to the regions. Mr Rajapaksa, the defence secretary, told a local paper on March 27th that regional autonomy would be a threat. “Could we afford to have a provincial administration here, which pointed a gun at the national leadership at the drop of a hat?”"