Foreign Policy of Sri Lanka – Hon. State Minister of Regional Cooperation, Tharaka Balasuriya, MP

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Event Report

NIICE NEPAL organized a webinar on 5th November 2020 about the foreign policy of Sri Lanka. The state minister of regional cooperation in Sri Lanka, Mr. Tharaka Balasuriya MP, presented his perception on the questions raised on how Sri Lankan foreign policy is Manuovering and what more needs to be done—followed by the Brief view of a Sri Lankan diplomat in Nepal who emphasized on the importance attached by the new government towards regional cooperation. It is also a noteworthy development in the context of the COVID pandemic, as countries are increasingly looking at regional partnerships for future economic engagement and cooperation. Sri Lanka is attracting renewed interest both within and beyond the South Asian region by observers seeking to gain an understanding of the country’s foreign policy direction under the new government of President Gotabaya Rajapaksa.

Questions about Sri Lanka’s foreign policy, the role of regional organizations like SAARC and BIMSTEC, and a few other concerns about Nepal and Sri Lanka, were posed. Which are as follows:

What is Sri Lanka’s present foreign policy? How does it look at China and India? 

He said they had developed the national policy framework to start processes. So, they managed to develop a 20-point foreign policy directive aimed at Nationals sovereign nations to play in the international system by converging national security and economic development. Moreover, out of the 20 points, the most important one is the policy of neutrality. Sri Lanka wants to be a country like Switzerland, has done very well for themselves, the neutral location as Sri Lanka, and they think of themselves as a single middle state among the maritime groups. They want to strengthen ties with Asia, particularly South Asia. They intend to uphold ownership of strategic assets quality and essential national resources. They want to leverage Sri Lanka since its strategic location in the Indian Ocean to make it a maritime aviation technological knowledge and financial hub. Wants to develop similar to Auckland Harbour in the south pacific region. Another critical point minister raised is that they want to seek opportunities for Sri Lankan entrepreneurs to venture into foreign markets, particularly Asia and Africa. They feel South Asia has been the fastest growing region during the last five years, and to an extent, they had missed the bus somewhat. Minister said they want to promote Sri Lanka for educational and human resource development as a Knowledge Centre. They even want to encourage to bring South Asian partners and partner countries from around the world where they can train the students. He comments that countries like China also spend considerable money sending their bureaucrats to Singapore for training.

So similarly, they too want to learn from the best in order to advance themselves and want to promote Sri Lanka’s image as a multiparty democracy; he comments even sometimes, western countries might not get able to understand the complexities of democracies in Sri Lanka, just as much as we find it very difficult to understand the Electoral College system in what is happening in the US. However, we want to take pride.

What about the challenges in balancing our neighbors, India and China? How is the silicon experience of balancing China and India? 

He says that we have strong historical ties both culturally and a solid relationship with India. China is one of Sri Lanka’s best friends because of its continuous financial support since 2009.

What is the status of Belt and Road Initiative projects in Sri Lanka? How do they look at the opportunities of BRI, especially in the context of media reports of Sri Lanka falling into a death trap?      

He comments: Yes, it is going on! Moreover, the need is for better fiscal management. However, as far as China is concerned, it is a misconception. Our total debt, which we owe to China, is less than 10% of our total debt, and most of the loans which China gives us are at concessionary cost,

How will Sri Lanka balance between the United States Indo Pacific strategy and China’s BRI, and apart from that, what is Sri Lankan stand on Millennium Challenge Corporation (MCC)? Or What about the debates on Nepal’s benefit from MCC or BRI or how the bank can cope with the initiative? 

Reaffirms the position of neutrality and looks at both the BRI and Indo-Pacific strategy as mere institutions of bringing about connectivity. They look at these two strategies as not necessarily mutually exclusive strategies.

How can Sri Lanka capitalize on its strategic location in the Indian Ocean region? 

Due to the Hambantota port location, which has the capability of being a trans-shipment Hub, Sri Lanka can utilize its position and be the global leader in being a spot shipment carrier and transportation center because the world’s 70% route passes from the Indian ocean.

What is Sri Lankan stand on the United States Indo Pacific strategy? How has Sri Lanka committed to Indian Ocean Rim Association (IRA) and the Indian Ocean region building?

Sri Lanka believes that most maritime challenges must be dealt with at multilateral levels and by adhering to the International Maritime laws. So it is a tremendous enduring interest in ensuring that the Indian Ocean region remains a region of peace as far as the Indo-Pacific strategy goes on.

When SAARC is inactive, what role is Sri Lanka playing in reviving SAARC? 

He comments that SAARC is essential; it talks about not only the economic aspects but also functional and many things. However, he says that he does not subscribe that SAARC is a failure.

Sri Lanka is a member country of Border Initiative, SAARC, and also of BIMSTEC, so which framework would benefit Sri Lanka the most? 

There are overlaps in many organizations, but the speaker feels that even both organizations have value. Moreover, he does not think that strengthening an organization should necessarily mean the demise of another organization.

Nepal and Sri Lanka both have Hindu and Buddhist links. Both countries can develop Hindu circuits and Buddhist circuits. So, what steps are taken by the government named India, Nepal, and Sri Lanka to develop religious tourism? 

Every year about 70,000 Sri Lankans tourists visit Lumbini to visit the birthplace of Buddha. Sri Lankans are also developing the Ragnar trail from the Ramayana epic so Nepalese tourists can see this route when they visit Sri Lanka. Sri Lankans have considerable potential in their beaches and hospitality sectors too.

What should Nepal and Sri Lanka do to enhance the tourism industry? 

Need of Connectivity between Lumbini and Colombo.

What are possible sectors of investment in Sri Lanka by Nepalese investors? 

Services and manufacturing regions, especially inside Hambantota industrial zones and Joint ventures in Ayurveda and pharmaceuticals along with gems and jewelry.

The terms and prospects of Nepal’s and Sri Lanka’s foreign policies, as well as their various dimensions of relations, were discussed in-depth during this lengthy discussion. Along with that, what else could be done to strengthen their extensive relations, particularly in a religious and spiritual sense, was also covered in detail.

Prepared by Om Ranjan, Intern at NIICE