Sri Lanka hasn't recognized the Taliban government and India would also say no due to the China factor.
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No one has yet recognized the Taliban government.
Give it to Bangladesh then.
Pakistan would say no due to strained relations, and state level Indian governments would pressure the federal government to say no due to anti-Bangladeshi sentiment in India (sort of similar to anti-Central American sentiment in the US with an added Islamophobic element or Ethnic element depending on the region) - appearing to vacillate to Bangladesh over what is basically a dumb symbolic issue would piss off voters in very narrow Indian elections.
I see that the Iranian government has also demanded the diamond in the past. Forestalling the diplomatic difficulty of giving it to Tehran, give it to the current Pahlavi claimant in exile, satisfying no one in power and thus the truly neutral solution.
There are pending water issues with Bangladesh like Teesta river, this could be a way to buy them off.
No Indian politician would want to appear to be appeasing Bangladesh would be slammed as anti-Hindu, anti-Assamese, anti-Tripuri, etc depending on the election, especially over an unneccesary symbolic issue like the Kohinoor diamond. And fundamentally, no one actually cares about the Kohinoor diamond conundrum other than a couple chattering class types like Tharoor. The Kohinoor diamond question is basically a microcosm of the larger issues in North India, Pakistan, and Afghanistan that all those central goverment politicians exacerbated or directly caused during Partition, the 1980s Punjab Militancy, the Kashmir exodus, the KPK insurgency, the Afghan Civil War, the ongoing issues in Kashmir, the various Indo-Pak wars, etc.
Release Kashmir as a buffer state and give them the diamond, resolving two international dilemmas with one stone.
Neither will do it as the other nation would try to make it a client country, and it would anyhow fall back into an ethnoreligious civil war like back in the 1990s. Also, it's not just Kashmir - it's Kashmir AND Jammu AND Ladakh AND Gilgit AND Baltistan. There are dividing lines across religion (Sunni vs Shia vs Hindu/Sikh), ethnicity (Pahari vs Koshur vs Migrant vs Balti vs Ladakhi), and caste (Dogra vs Gaddi vs Bakkarwal). If I was negotiating, the only solution would be a full normalization of India-Pakistan relations with cross-border travel restarted like back before the 1971 war, and potentially a SAARC based free trade corridor (free transfer of goods and people from Mazar-i-Sharif to Moreh, from Gilgit to Galle, from Chittagong to Colombo, from Kathmandu to Karachi), but that ain't happening in my lifetime.
There are a lot of complexities involved (you didn't mention the Buddhists, and China has border claims too), but it seems like the locals are pretty fed up with the status quo and have a real "a plague on both your houses" sentiment now. Unfortunately their opinion doesn't seem to matter to the actual powers involved.
https://www.nytimes.com/2019/09/19/world/asia/pakistan-kashm...
https://www.reuters.com/article/us-kashmir-poll-idUSDEL29179...