The 1974 Maritime Boundary Agreement between India and Sri Lanka was a significant treaty that defined the maritime boundary in the Palk Strait and Bay of Bengal. The island of Katchatheevu, situated in the Palk Strait, was a focal point of this dispute. Under the agreement, India ceded its claim to Katchatheevu, which then became part of Sri Lanka. This was done to resolve the maritime boundary dispute and facilitate better relations between the two nations.