By P.K.Balachandran
Colombo, January 18: The four-day State Visit of Sri Lankan President Anura Kumara Dissanayake to China from January 14 to 17 has resulted in a number of mutual commitments which could have significant geo-political and geo-economic implications.
These commitments were stated clearly in the joint communique issued after talks between President Dissanayake on the one hand, and President Xi Jinping, Premier Li Qiang and Zhao Leji, Chairman of the Standing Committee of the National People’s Congress, on the other.
Independent Foreign Policy
The Chinese side reiterated that it would continue to firmly support Sri Lanka in “safeguarding its national independence, sovereignty and territorial integrity, and respect and support Sri Lanka in independently choosing a development path suited to its national conditions.”
On its part, Sri Lanka reiterated its commitment to follow “an independent non-aligned foreign policy.”
This is an important commitment on Sri Lanka’s part in the context of China’s persistent complaint that Sri Lanka tends to bow to pressure from regional power India to do this or avoid that vis-à-vis China.
It should be noted here that the Dissanayake government had already said before coming to power that its decisions on foreign funded projects would be based on unbiased and rational grounds rather than on political and other grounds that might smack of mala fide dealings.
China was aggrieved that a wind power project in North Sri Lanka, that was originally awarded to it was taken back and given to India. India had insisted that Chinese presence in that part of North Sri Lanka that is in close proximity to the South Indian shore, would be a national security threat to it.
Likewise, when Chinese “research” vessels docked in Sri Lankan ports, India objected saying that these were actually “spy” vessels targeting India and Indian interests in the Western Indian Ocean.
But China’s case was that the research vessels had a tie up with Sri Lanka’s National Aquatic Resources Research and Development Agency (NARA). It was also argued that no other country could infringe on another country’s sovereign rights and deny access to a global common ground like the ocean.
Caught in a cleft stick between two big powers, the earlier Sri Lankan government had imposed a one-year moratorium on visits by all foreign research vessels. That blanket moratorium ended in late 2024. But the Dissanayake government neither called off the moratorium nor extended it.
The matter was raised by India in the December 2024 talks with the visiting Sri Lankan President Dissanayake. However, Disanayake managed to buy time with the plea that his government had to consider certain issues before taking a decision.
Continuing Maritime Cooperation
However, the Sino-Lankan joint communique of January 16 said that the two sides shared a desire to continue maritime cooperation “on the basis of equality, mutual trust, openness and mutual benefit, and hold regular bilateral consultations on maritime affairs.”
This could be taken as a hint of Chinese vessels being allowed entry again.
Be than as it may, the communique laid a firm foundation for maritime cooperation. It said: “The two sides are ready to deepen cooperation in such fields as conservation and restoration of the marine environment and ecosystems, maritime domain awareness, maritime rescue and disaster relief, and maritime personnel training and capacity building, and pool their strength to build a maritime community with a shared future. The two sides agreed to sign Memorandum of Understanding on Ocean Cooperation towards a Blue Partnership”
Part of Belt and Road Initiative
Given China’s interest in pushing its global Belt and Road Initiative (BRI), Sri Lanka said that it “appreciates the important role of Belt and Road cooperation in its economic and social development and the livelihood of its people.”
The communique added that “the two sides were pleased to sign a Belt and Road cooperation plan to upgrade China-Sri Lanka high-quality Belt and Road cooperation and jointly open up new space for win-win development of higher standard, stronger resilience and greater sustainability.”
Elaborating, the communique said that the two sides agreed to advance all major signature projects including the Colombo Port City and Hambantota Port integrated development, as part of the BRI.
With these declarations, Sri Lanka became a firm partner in China’s BRI infrastructure-based global network. But the BRI is seen by India and its Western partners as creating “debt traps” injurious to developing countries and also as an arm of China’s expansionist geo-political agenda. New Delhi is therefore unlikely to see Dissanayake government’s joining the BRI in a favourable light.
Dissanayake had also reaffirmed Sri Lanka’s commitment to supporting and actively participating in China’s Global Development Initiative (GDI), the Global Security Initiative (GSI) and the Global Civilization Initiative (GCI). But these initiatives too are viewed with suspicion by China’s rivals. In their eyes, these are but part of China’s inter-continental power projection aimed at weakening the influence of its rivals. In the region and elsewhere.
Financial Support Pledged
The joint communique said that Sri Lanka expressed its “high appreciation for the valuable support it has received from China in times of financial difficulties, including the vital assistance in restructuring China-related debts.”
Sri Lanka has thus forgiven China for not rushing to its assistance with financial inputs when the country defaulted on repayment of loans amounting to billions of dollars. It was India which rescued Sri Lanka from the abyss at that time with a US$ 4.5 billion package. Of course, later, China did make amends by helping Sri Lanka in other ways such as helping it secure debt restructuring and get an IMF bailout package of US$ 2.9 billion.
“China will continue to play a positive role in the International Monetary Fund and maintain friendly communication with other creditors to help Sri Lanka ease its financial difficulties and achieve debt sustainability. The Central Bank of Sri Lanka and the People’s Bank of China have renewed their currency swap agreement and will continue to carry out financial cooperation,” the communique noted.
On its part, Sri Lanka hoped that China would soon implement the agreed debt restructuring plan together with Chinese financial institutions.
Trade: Silence on FTA
On trade China expressed its readiness to continue supporting Sri Lankan enterprises in the tea, gem and other industries in establishing ties with relevant Chinese associations of importers and exporters.
On the ticklish issue of signing a Free Trade Agreement (FTA) the joint decision was to continue discussions. Sri Lanka has been reluctant to sign an FTA with China as China has been using FTAs to increase its exports and not enable the trading partner to sell more to China.
However, China has promised to strive for an FTA package “in line with the principles of equality, mutual benefit and win-win outcomes.”
On its part, Sri Lanka expressed a wish to play host to “more business investment from China” and promised to “provide a conducive investment and business environment for this purpose.” And China said that it will “continue to encourage Chinese enterprises in investing in Sri Lanka.”
Aid to Key Sectors
The two sides agreed to expand cooperation in such fields as logistics, green development, and digital economy to propel their high-quality and mutually beneficial practical cooperation.
On agriculture where Sri Lanka is still lagging behind and importing essentials, China conveyed its readiness to carry out training and demonstration programs with Sri Lanka in areas including bio-technologies for tropical crops, plant breeding and cultivation, and aquaculture.”
The idea is to help Sri Lanka to further expand its export of distinctive products to China, including tea, fruits, cinnamon, and aquatic products.
The two sides shared the readiness to expand exchanges and cooperation with a sharper focus on poverty reduction and rural revitalization. China expressed its readiness to help Sri Lanka strengthen the capacity of personnel in related fields.
Education and Skills Development
The joint communique said that China would encourage more “committed” students from Sri Lanka to pursue further studies in China, and was ready to continue to support them with government scholarships and set up vocational and technical training for Sri Lankans.
China would promote Chinese language education in Sri Lanka and continue to develop the China-Sri Lanka Joint Centre for Education and Research under the Chinese Academy of Sciences, to strengthen scientific and technological exchanges and cooperation and education in the universities and research institutes of the two countries.
END
