It’s time for U.S. policy toward Sri Lanka to be more symmetrical
Ajith Nivard Cabraal
Sri Lanka’s economy is growing at about a 7.5 per cent annual clip,
with low inflation and a per capita income of US$ 2,923. We are striving
towards a per capita income of over $4,000 by 2016 and are on track to
surpass the United Nations Millennium Development goals by 2015. This is
remarkable, given that Sri Lanka had a per capita income of only US$ 981
in 2003, and it was only four years ago that it broke free from the grip
of terrorism, and is still recovering from the economic, political, and
social upheaval caused by the destructive conflict. The dividends of
peace in Sri Lanka now seem real, and the country is poised to become
the next breakout nation.
Reconciliation process
However, if one were to Google Sri Lanka today, it appears as if the
international community, led by the U.S., is mostly focused on a short
episode of 2009, namely the last months of the war on the Tamil Tigers,
during which many combatants on both sides lost their lives. That is
probably why the U.S. sponsored a resolution at the United Nations Human
Rights Council this year that asked Sri Lanka to speed up the
reconciliation process and investigate allegations of human rights
abuses.
The Colombo World Trade Centre |
It is now becoming increasingly clear that U.S. (and European)
policies towards Sri Lanka are asymmetrical. The U.S. is applying heavy
pressure toward the Sri Lanka government to accelerate the
reconciliation process with the minority Tamil population while ignoring
the major strides that have been made towards this goal by the Sri
Lankan government and people. At the same time, the U.S. seems to be
paying little attention to the geo-strategic dimensions of U.S.-Sri
Lanka relations as well as to the economic potential that Sri Lanka has
to offer as the fastest growing economy in its region and as a gateway
to a one billion people market in next door India.
When the U.S. declared war on terror after 9/11, Sri Lanka had
already been fighting such a war for decades. As with 9/11, Sri Lanka’s
financial sector too was a target. On January 31, 1996, a Tamil suicide
bomber drove a truck laden with high explosives into the building of the
Central Bank of Sri Lanka, killing 91 and injuring 1,300.
Today, the war in Sri Lanka is behind us, having been settled
decisively in May 2009 on the battlefield. The challenges facing our
nation now include the physical reconstruction of the infrastructure of
war-affected areas in the north and east of Sri Lanka, and the growing
of an economy that will benefit all Sri Lankans, including the minority
Tamil population.
U.S. policy makers
Through an active funding programme, the government and the Central
Bank of Sri Lanka has already financed and implemented the removal of
landmines, physical reconstruction of infrastructure, resettling all
internally displaced persons, improving health and education sectors,
strengthening financial inclusiveness, opening up local markets and
improving the movement of people and goods, especially in the
war-affected areas. All these are vital human rights too.
Of course, reconciliation after a conflict is important. But, this is
a psychological process that can take many years, decades in most cases,
and which needs to follow its own course, driven by the parties
involved. Perhaps U.S. policy makers would do well to reflect as to how
long the U.S. took to reconcile after its own civil war.
Sri Lankans need time and space to overcome the mistrust and the
bitterness brought about by 30 years of war and terrorism. Outside
support can be helpful, but outside pressure that appears to be inspired
by a very vocal Tamil Diaspora, without taking into account,
achievements on the ground and the larger political and economic
picture, is not well received or understood in Colombo.
From a strategic perspective, Sri Lanka is located at the
intersection of the world’s busiest shipping lanes between Europe, South
Asia, the Middle-East, China and Japan, navigated by 50 percent of
global container traffic and 70 percent of global energy supplies. Its
harbours are vital in the fight against piracy.
From an economic perspective, Sri Lanka’s business climate,
well–educated work force and proximity to India make it an ideal
springboard for companies to do business in India’s states and to launch
products onto the global market.
Foreign direct investments
We value our relations with America. The U.S. is a major market for
our exports. U.S. investors have made significant foreign direct
investments and are the leading holders of Sri Lankan bonds. At the same
time, we increasingly depend on China and India for investments in our
infrastructure. Just last month, Sri Lanka opened its second
international airport, funded by a $209 million Chinese loan.
Is the U.S. “losing” Sri Lanka? Not yet. In December 2009, Senators
Kerry and Lugar circulated a report to their colleagues in the Senate
Committee on Foreign Relations that concluded that “U.S. policymakers
have tended to underestimate Sri Lanka’s geostrategic importance for
American interests” and that “a more multifaceted U.S. strategy would
capitalize on the economic, trade, and security aspects of the
relationship.” On its part, Sri Lanka would welcome a recalibration of
US policy towards a more symmetrical US strategy that takes into
consideration, the key strategic, economic and trade perspectives.
Surely, such a strategy will serve both countries’ long term interests.
Cabraal is Governor of the Central Bank of Sri Lanka
Courtesy: Forbes
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