The following statement is released by the Governments of Sri Lanka and the United States of America on the occasion of the Fourth Sri Lanka – U.S. Partnership Dialogue held on 23 March, 2022 in Colombo. 

Sri Lanka and the United States convened the Fourth Sri Lanka – U.S. Partnership Dialogue on 23 March, 2022, in Colombo, Sri Lanka, renewing their shared commitment to economic prosperity, sustainable development, democracy, human rights, and the rule of law.  The meeting was co-chaired by the Minister of Foreign Affairs of Sri Lanka Prof. G.L. Peiris and the Under Secretary for Political Affairs of the U.S. Department of State Victoria Nuland. 

Both delegations reaffirmed their commitment to the bilateral relationship, firmly rooted in shared values as fellow democracies, and their intent to work together to further strengthen the partnership.   

Sri Lanka expressed its deep appreciation to the United States for the donation, in partnership with COVAX, of 3.4 million vaccines, and the provision of over $18 million in health equipment and other relief to address the COVID-19 pandemic in the past year. 

Acknowledging that the U.S. is already the largest market for Sri Lankan exports, both delegations reiterated their intent to explore new opportunities to enhance market access, bilateral trade, investment, and tourism.  The United States expressed its commitment to enhancing opportunities for the economic empowerment of women.  To that end, Sri Lanka welcomed the role of the U.S. International Development Finance Corporation (DFC), which has increased its portfolio to $265 million in loans designed to support Sri Lanka’s small and medium enterprises, particularly women-owned businesses.  Sri Lanka also appreciated the provision of U.S. funding to launch the first business accelerator in Sri Lanka, specifically aimed at women entrepreneurs. 

Both countries committed to working together to address climate change and other environmental challenges.  The United States welcomed Sri Lanka’s goal to produce 70 percent of electricity from renewable energy by 2030, and to attain carbon neutrality by 2050.  Ongoing U.S. grant assistance to help meet these goals, including a five-year $19 million Sri Lanka Energy Program and support towards a floating solar plant, were noted with appreciation.   

The United States informed its intent to continue supporting the sustainable development of Sri Lanka through the U.S. Agency for International Development.  The U.S. delegation reaffirmed its commitment to promote school nutrition and literacy among Sri Lankan children, in consultation with the Sri Lankan Government.  Sri Lanka appreciated the successful nutrition campaign conducted by Save the Children in 2021 which benefited over 106,000 primary grade students.  

Sri Lanka and the United States resolved to continue cooperation on maritime security and work together to ensure a safe maritime domain in the Indian Ocean through the rules-based international order.  In this context, the U.S. strategy towards a free, open, and prosperous Indo-Pacific region, which promotes freedom of navigation and overflight, was noted as an important initiative.  Sri Lanka welcomed the impending arrival of the third High Endurance U.S. Coast Guard Cutter transferred through the U.S. Excess Defense Articles program.  The United States noted the recently announced King Air program to strengthen Sri Lanka’s maritime monitoring capacity and respond to humanitarian and post-disaster needs.  Sri Lanka welcomed U.S. support in the prevention of smuggling and other illegal activities.      

Both delegations welcomed ongoing bilateral defense and security sector cooperation, including U.S. support for humanitarian demining and disaster relief, joint military engagements, human rights training for Sri Lankan officers, and exchange of visits, including by U.S. ships and military officials. The United States resolved to explore opportunities to further expand counter-terrorism cooperation with Sri Lanka.

The United States welcomed action taken by Sri Lanka to promote reconciliation and human rights in pursuit of development and prosperity.  Sri Lanka outlined its progress in reconciliation, in promoting and protecting human rights, and in strengthening democracy, democratic institutions and practices, good governance, justice and the rule of law.  The United States acknowledged progress in these areas, including efforts to reform the Prevention of Terrorism Act (PTA), the release of long-term PTA detainees, the justice reform agenda, and engagement with civil society representatives.  The United States encouraged Sri Lanka to continue making progress on its commitments to reconciliation and human rights.   

Both delegations expressed strong support for ongoing cooperation between the two countries in education and culture.  The United States emphasized the value of educational exchanges, highlighting the 70^th anniversary of the U.S.-Sri Lanka Fulbright Program and its contribution to Sri Lanka’s development. The United States expressed interest in working together to further expand opportunities for university partnerships and overseas study for Sri Lankan students that would benefit both countries.  Both delegations welcomed ongoing efforts to preserve and celebrate Sri Lanka’s rich cultural heritage through cultural heritage funding received from the U.S. over the last 17 years.  The delegations decided to continue collaboration to provide English Language teaching, teacher training, curriculum development, and other support to strengthen Sri Lanka’s education sector.  

Sri Lanka and the United States emphasized the importance of the bilateral relationship, and decided to continue cooperation on a broad range of areas to further strengthen the partnership for mutual benefit. 

Sri Lanka High Commissioner in Kenya Veluppillai Kananathan presented the Letter of Credence appointing him as the Ambassador of Sri Lanka to Guinea with residence in Kenya, to His Excellency Mamady Doumbouya, President of Guinea at the Presidential Palace in Conakry on 11^th March, 2022.

After the presentation of credentials ceremony, President Doumbouya invited the Ambassador of Sri Lanka to a brief meeting to exchange views on the status of bilateral relations and other issues of common interest. At the outset the President of Guinea said that he was delighted to receive Ambassador Kananathan as the first Ambassador from Sri Lanka presenting Credentials in Guinea and remarked it as ‘historic’ in the bilateral relations between the two countries.

Ambassador Kananathan conveyed the greetings and best wishes of President Gotabaya to President Doumbouya. In response, President Doumbouya thanked the Ambassador and requested him to convey his felicitations and sincere good wishes to President Gotabaya Rajapaksa.

After sharing views on the prospect of maintaining close relations between the two countries, the President and the Ambassador underlined the need to activate the diplomatic relations between the two countries into a performing cooperation involving promising economic activities to reach its true potential.

Ambassador Kananathan informed the President of Guinea that the Sri Lanka government headed by President Gotabaya Rajapaksa in Sri Lanka had successfully handled the COVID-19 pandemic including the new variant in Sri Lanka with effective governance, strategy for epidemic prevention and control measures as well as inoculated more than 81% of the population against the COVID-19. President Doumbouya commended the effective and dynamic vaccination drive lead by President Gotabaya Rajapaksa in Sri Lanka and wished him every success in his efforts to swiftly revive the pandemic affected economy.

Further, Ambassador Kananathan briefed the President of Guinea on the progress achieved in addressing the post-conflict issues and the commitment of the Government of Sri Lanka to address all remaining issues expeditiously. He also said that the internal mechanisms established in this regard are performing well to reach the goals efficaciously. The President of Guinea responded saying that Guinea will support Sri Lanka at the multilateral forums in order to recognize Sri Lanka’s efforts to achieve the identified targets to resolve the post-conflict issues.

President Mamady Doumbouya recalling Ambassador Kananathan’s connections with Guinea as an entrepreneur in Africa and his past role as Adviser on Investments to the former President of Guinea Alpha Condé, thanked him for bringing in foreign investments in maize cultivation and sugar industry through the Investment Promotion Agency of Guinea (APIP). The President further said that as Ambassador to Guinea he could bring more investments to Guinea from Sri Lanka to invest in diverse fields under the most beneficial and lucrative terms and conditions presented for FDIs in Guinea, which will create a win-win situation.

The President remarked that as a friend of Guinea who was familiar with Africa and in particular with Guinea and well-informed of the potential areas for cooperation to be developed, Ambassador kananathan had the exceptional capacity to enhance the political and economic relations between Sri Lanka and Guinea for the benefit of both countries. The meeting ended with President assuring the Ambassador Kananathan of his government’s support and wishing him good luck to achieve the identified goals and objectives in the relations between Sri Lanka and Guinea.

High Commission of Sri Lanka

Nairobi

23 March, 2022

The Under Secretary for Political Affairs of the U.S. Department of State Victoria Nuland met with President Gotabaya Rajapaksa this (23) afternoon on her two day official visit to Sri Lanka.

The Under Secretary was briefed on the remarks made during the All Party Conference convened by the President this morning and the progresses made. She was also informed about the upcoming Friday meeting with the Tamil National Alliance (TNA) to which the Under Secretary expressed her admiration.

Nuland raised the importance of negotiating with the Diaspora in Canada, the United States of America and other European countries. In response, President Rajapaksa said he is eager to hold discussions with the Diaspora while inviting them to invest in the development projects undertaken in the Northern Province.

Under Secretary Nuland added that steps would be taken to introduce green technology of the US to Sri Lanka and to support the development of the cyber and information technology sectors.

Shedding light on the educational facilities in the country, the Under Secretary emphasised that higher education opportunities could be expanded with the assistance of the private sector.

The President told the Under Secretary that he had decided to seek the International Monetary Fund’s (IMF) assistance to avoid the impact of the Covid-19 pandemic and other events on the country’s economy. Appreciating the decision, Nuland assessed the Sri Lankan government’s move of amending the Prevention of Terrorism Act (PTA).

The Sri Lankan President called on the US delegation to assist in expanding the potential for renewable power generation.

MIAP

Customs officers have seized 350 kilograms of cocaine amounting to Rs. 06 billion loaded in four containers at the Colombo Port.

These containers of cocaine had arrived at the Colombo Port from Panama via Belgium and Saudi Arabia and was ready to be shipped backed to India.

The papers claimed the containers contained scarp metal but a search carried out by the Ports Authority of Sri Lanka Customs revealed that the containers of cocaine had been imported under the pretext of scarp metal.

The cocaine stocks will be handed over to the Police Narcotics Bureau upon preliminary investigations.

The government will be providing relief to the people for the upcoming Sinhala and Tamil New Year festive season said Finance Minister Basil Rajapaksa.

Accordingly, the relevant measures will be taken in the next few days and it will be possible to curb the pressure exerted on the public to a certain extent, he noted.

The Finance Minister is set to table an amended budget in this regard and the budget will be tabled ahead of the festive season if the government and the Cabinet approve it.

Addressing the All Party Conference convened by President Gotabaya Rajapaksa today (23) the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP) urged that the budget tabled in Parliament this year be amended or relief be provided to the people. The Finance Minister responded that he could agree to the request.

MIAP

Leader of the United National Party (UNP) MP Ranil Wickremesinghe addressing the All Party Conference held this (23) morning under the President’s patronage inquired about the report of the International Monetary Fund (IMF) regarding Sri Lanka.

In response, Finance Minister Basil Rajapaksa commented that the government has not yet received the IMF report on Sri Lanka.

Further being insisted by Wickremesinghe that the Sri Lankan representative of the IMF should be inquired in this regard, Minister Rajapaksa stated that the draft of the final report formulated by the IMF has been received.

However, the Finance Minister denied the UNP Leader’s request on disclosing the draft report in Parliament.

Further contributing to the All Party Conference led by the President, Wickremesinghe stressed that it may take at least five years for Sri Lanka to overcome the current crisis. Stabilising the country’s economy and ensuring economic recovery in the next two years would be the two major issues before Sri Lanka, he added.

MIAP

Sri Lanka had appealed to China if a restructuring of the debt could be arranged to mitigate the economic crisis that had arisen in the face of the COVID-19 outbreak.

Colombo: China refused to assist Sri Lanka which appealed to reschedule its huge Chinese debt burden in the face of the COVID-19 outbreak that has adversely affected the tourism sector, said a media report.

Colombo appealed if a restructuring of the debt could be arranged to mitigate the economic crisis that had arisen in the face of the COVID-19 outbreak. President of Sri Lanka Gotabaya Rajapaksa in a meeting with Foreign Minister of China Wang Yi sought the assistance of Beijing in the face of the deepening foreign exchange crisis of Sri Lanka and spiralling external debt.

“Replying to a question on the pending request from Sri Lanka for a debt relief, Foreign Ministry spokesman of China Zhao Lijian said in a news conference this month, that China had been providing assistance for the socio-economic development of Sri Lanka to the best of its ability and would continue to do so. In concrete terms, this meant nothing,” the Hong Kong post reported.

“China has shed some crocodile tears over the economy of Sri Lanka getting caught in a quagmire after hobnobbing with the BRI projects of China, record inflation, soaring food prices and the sufferings of the people,” said a media report.

“The key concern, however, is how such a negative situation would impact the attitude of Colombo towards borrowings from China,and what it would mean for the ultimate relation between China and Sri Lanka. There is concern that the experience of Sri Lanka is prompting countries like Myanmar, Malaysia and Nepal to suspend Chinese investment projects,” it added.

Though the crisis in Sri Lanka was apparent after the pandemic that dried up the international tourist traffic to the island nation, one of its main foreign exchange-earners, the country’s debts spiralled and foreign exchange reserves shrunk as the end result of reckless borrowings from China to finance infrastructure projects, reported The Hong Kong Post.

With tourism hit by the pandemic, the economic structure of Sri Lanka, which was already tottering under the heavy burden of loans, crumbled. A major part of this debt was owed to China, which accounts for nearly USD 8 billion.

This debt burden was a result of China’s Belt and Road Initiative (BRI) projects like Hambantota Port and Colombo Port City for which Chinese agencies lent large amounts to Sri Lanka under stiff terms of repayment.

Notably, in 2021-22, Colombo’s debt repayment to Beijing amounted to nearly USD 2 billion. Further, Hambantota port has already been leased out to China for 99 years against USD 1.2 billion.

In the face of the deepening foreign exchange crisis, Sri Lanka President Gotabaya Rajapaksa sought China’s help in December 2021 as he requested a debt restructuring in a meeting with China Foreign Minister Wang Yi. However, Beijing has reportedly shown Colombo the door, according to the media report.

“Ironically, the deeply pro-China Rajapaksa government dug its own grave as it had booted out the Millennium Challenge Corporation (MCC) of the USA with its offer to extend developmental assistance grant to Colombo as the Board of Directors of MCC discontinued its USD 480 million contract with Sri Lanka in December 2020 “due to lack of partner country engagement,” the publication reported citing the US embassy.

Further, China-assisted projects in Sri Lanka are likely to deepen the debt of the island nation. Moreover, locals of Sri Lanka are protesting against some of these projects which will affect their livelihood.

One of these projects is an industrial park attached to the Hambantota International Port which has incited violent protests by local people as they fear that the area would become a Chinese colony, reported the media organisation.

Given the current crisis coupled with the absence of any assurances from China for concrete support, Sri Lanka seems to be reassessing the extent to which it can bank on China.

However, it is nearly impossible for Rajapaksas to deny China its committed space in Sri Lanka due to arbitration threats and likely obligations. It is an economic annexation of a sovereign country and not a debt trap alone.

NDTV