Indian Prime Minister Narendra Modi’s assertion in Chennai last week that Sri Lanka will never be forgotten as it undergoes economic hardships, could not have come at a better time. India has already done more than any other country to alleviate the suffering of the people in Sri Lanka, who are faced with chronic shortages of everything from fuel to milk powder, not to mention an economy that is down on its knees.
The assistance has come in the form of a US$ 500 million oil line of credit; US$ 1 billion lines of credit for essentials to be imported from India under negotiation; a currency swap of US $ 400 million; deferral of US$ 515 million under Asian Clearance Union; 40,000 MT of fuel on credit; 100,000 Rapid Antigen Test kits and supply of 1,000 tons of liquid medical oxygen. India also supplied a consignment of nano fertiliser following the shortage of both organic and chemical fertiliser in Sri Lanka.
Quite apart from being geographical neighbours and sharing a heritage that runs back thousands of years, the Governments in both Colombo and New Delhi have always had excellent relations. Granted, there have been ups and downs in the ties, which were significantly affected by the infamous “parippu drop”, the Indo-Lanka Accord episode and the IPKF arrival. Nevertheless, any such blemishes were mended over the years and today, the relationship is at an optimal level.
Over the years, the leaders at both ends have enjoyed a good personal and professional relationship. Generally, Sri Lankan leaders have chosen India for their first official overseas visit. In fact, new Prime Minister Ranil Wickremesinghe too will be visiting India soon on his first official overseas trip. Indian leaders have also visited Sri Lanka frequently. Prime Minister Wickremesinghe has always had a good rapport with Indian leaders, regardless of the administration in New Delhi.
The role played by President Gotabaya Rajapaksa, Foreign Minister Prof. G.L. Peiris and the two High Commissioners – Gopal Baglay and Milinda Moragoda in enhancing the Indo-Lanka relationship should also not be forgotten. The latter duo have played a behind-the-scenes role in facilitating the current developments vis-à-vis Indian assistance for Sri Lanka. Moragoda’s much-publicised strategic framework for improving Indo-Lanka ties has also been very useful in this regard. We hope that India will continue to stand by the Government and the people of Sri Lanka over the coming months to tide over its economic difficulties, as promised by Premier Modi.
India is not the only country in the region that has come to Sri Lanka’s assistance in this hour of need. Bangladesh, which at one time was much poorer than Sri Lanka, has extended a currency swap of US$ 250 million to Sri Lanka. Our economists must indeed study how Bangladesh transformed its economy and boosted its foreign reserves up to US$ 45 billion, while ours dwindled to a paltry US$ 25 million. Pakistan, an all-weather friend which has often come to Sri Lanka’s aid in the past, is unfortunately not in a position to help us at the moment, embroiled as it is in an economic crisis that is not much different from the one in Sri Lanka. China too has stepped in to help Sri Lanka and more negotiations are under way for assistance under the age-old Sino-Lanka friendship.
It is however, surprising that apart from seeking, the help of the International Monetary Fund (IMF) and the World Bank, Sri Lanka has not yet turned to more friendly countries to ride out this storm. As pointed out by a leading article in our sister newspaper the Daily News yesterday, Sri Lanka is yet to tap the potential of BIMSTEC in this regard. For example, a BIMSTEC country such as Thailand with which Sri Lanka shares a proud Buddhist heritage, should be approached via diplomatic means. Our Foreign Ministry should get cracking on this issue immediately. The QUAD Alliance is another case in point.
It is generally believed that Sri Lanka soured its relationship with Japan over the shortsighted decision to cancel the Japanese-funded Light Rail Transit (LRT) project and the Eastern Container Terminal (ECT) of the Colombo Port. At least the LRT should be revisited and the ties mended. Japan is the most generous with highly concessionary terms for its aid and we need it back at this time.
But perhaps the biggest failure in our foreign policy sphere in recent memory is the unnecessary rift we developed with the West over human rights, accountability and various other issues. Many of our politicians blasted the West targeting the local audience and votes, but a terrible cost to the country. If we do not develop our ties with the West, we might even have to face the loss of concessions such as GSP Plus. This is a stark truth staring us in the face. It is indeed a telling indictment that no Western country has come forward to assist Sri Lanka in a major way, except for minor donations.
We need the international community on our side at this critical juncture. While the Central Bank officials led by Governor Dr. Nandalal Weerasinghe strive to achieve positive results in their negotiations with the IMF and the World Bank, Foreign Ministry officials led by its dynamic new Secretary Aruni Wijewardane must leave no stone unturned to explore bilateral deals that may help Sri Lanka. Such deals may also be concluded more swiftly than those with multilateral lending agencies which have more strict due diligence conditions. There is no time to be lost – it is time to step up our efforts.