Under BIMReN Split-Site Doctoral Fellowships, doctoral candidates in BIMSTEC member countries get a research grant of up to 1 million Indian rupees and the opportunity to pursue studies at Indian research labs for 6-12 months.

The full statement is reproduced below:

Government of India has launched BIMReN (BIMSTEC-India Marine Research Network), a joint-initiative of MEA and the Bay of Bengal Programme-Inter Governmental Organization (BOBP-IGO), to facilitate sustainable development of blue economy by networking researchers and research institutions in BIMSTEC countries.

2. BIMReN aims to enable PhD students from BIMSTEC countries to conduct doctoral research in India and facilitate collaborative research among scientists / academicians from BIMSTEC countries through:

i. BIMReN Split-Site Doctoral Fellowships, which offers doctoral candidates in BIMSTEC member countries a Research Grant of up to INR 1 million and the opportunity to pursue studies at Indian research labs for 6-12 months.

ii. Twinning Research Projects, aimed at facilitating collaborations between institutions and individuals from BIMSTEC member countries, to work together on research programmes of regional interest, with an associated grant of up to INR 5 million per project of tenure of 24 months.

3. Researchers and academic institutions engaged in research in fisheries, marine or ocean sciences from across the BIMSTEC region would stand to benefit from the program. Call for the first round of entries is open until 30 June 2024. Detailed information, including features of the program and guidelines for application may also be found at: https://www.bobpigo.org/pages/view/bimren

4. For any clarifications, the following nodal point may be contacted: Dr. P Krishnan, Director, Bay of Bengal Programme – Inter Governmental Organisation, Email: info@bobpigo.org, Telephone: +91 44 42040024.

Sri Lankans are among 36 countries added to a list of 57 countries that would get 60 day stays under the scheme, The Bangkok Post reported.

The new countries eligible for ‘Destination Thailand Visa’ include Albania, Cambodia, China, India, Jamaica, Kazakhstan, Laos, Mexico, Morocco, Panama, Romania and Uzbekistan.

Visitors who want to work and visit tourist destinations will be able to get five-year visas valid for 180 days, extendable for another 180 days, the government spokesman Chai Wacharonke was quoted in the news report.

The visa will allow foreign students of higher education to stay for one year after graduation and work, instead of having to leave the country immediately after finishing their course.

“They can find work during the extended period, especially in the fields that we need,” the spokesman said.

Visitors over 50 years who want long-stay visas currently need to have health insurance coverage worth 3 million baht. This has now been reduced to 440,000 baht (400,000 for inpatient treatment and 40,000 for outpatient cover).

The cabinet also approved the expansion of e-visa application services at Thai consulates and embassies from 47 to 94 locations, commencing in September. (Colombo/May30/2024)

President Raisi and eight others including Iranian Foreign Minister Hossein Amir Abdollahian were killed in the crash when the helicopter had a “hard landing” reportedly due to adverse weather conditions with heavy fog. However, President’s two convoy helicopters reached the destination safely.

“The Sri Lankan government has declared a national mourning day on tomorrow (May 21) on behalf of the sudden death of Iranian president Mr. Ebrahim Raisi,” the Department of Government Information said in a statement.

It also urged all the state institutions have to hoist the national flag half mast.

Raisi was in Sri Lanka on April 24 to launch the Uma Oya dam on a one-day official visit amid tight security. His helicopter crashed when he was returning to Iran after launching a dam in the Azerbaijan border.

President Raisi is seen as a hardliner and a potential successor to Supreme Leader Ayatollah Ali Khamenei.

Earlier this month, Sri Lanka’s Foreign Minister Ali Sabry said the island nation will deal with Iran for investments and trade without being caught into the United States-led sanctions.

Sri Lanka was unable to receive $450 million from Iran for a recently opened Uma Oya multipurpose project started before the sanctions.

Sri Lanka now exports tea to Iran for no dollar payment. Instead, Sri Lanka tea producers are paid by the state-owned Ceylon Petroleum Corporation (CPC) in rupees for the pending crude oil import payments for Iran.

President Ranil Wickremesinghe expressed his condolences on the tragic incident.

“Sri Lanka is deeply shocked and saddened by the tragic death of President Ebrahim Raisi, Foreign Minister Amir Abdollahian and other senior Irani official,” he said in his official X-platform.

“I express my deepest sympathies and sincere condolences to the bereaved families, the government and the people of Iran.”

Raisi, a Muslim jurist, served as the eighth president of Iran from 2021 until his death. (Colombo/May 20/2024)

BRICS is an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates, while the IORA is a regional forum, tripartite in nature, bringing together representatives of Government, Business and Academia, for promoting co-operation and closer interaction among them.

We have been invited by BRICs Foreign Minsters’ meeting in Russia on the basis that we hold the chairman ship of the IORA,” Sabry told last week at a media briefing.

“So, it has enhanced Sri Lanka’s standing internationally.”

Moscow will host the International Conference titled “Antimicrobial Resistance: A Global Challenge to the National Well-Being of BRICS. Reality and Innovation” at the end of May.

Sri Lanka, a founding member of IORA, assumed the chairmanship in October 2023.

The Moscow Conference will be attended by roughly 100 representatives of BRICS countries, as well as the World Health Organization (WHO), the UN Food and Agriculture Organization (FAO), and the World Organization for Animal Health (OIE), its official website showed.

Upon conclusion of the Conference, BRICS experts are expected to adopt a joint statement that will subsequently be presented at the High-Level Meeting of the UN General Assembly on Antibiotic Resistance in September 2024 in New York. (Colombo/May 13/2024)

The government of former president Gotabaya Rajapaksa led by current ruling party Sri Lanka Podujana Peremuna (SLPP) forced Muslims and Christians to cremate the dead bodies of those who died of Covid-19 in 2020.

The OIC raised the forced cremations issue at the 46th United Nations Human Rights Council (UNHRC) in February 2021 after the SLPP government rejected repeated requests by local and global Islamic bodies.

The policy was later reversed, but the move hit diplomatic ties with Middle Eastern and OIC nations which is the highest source of employment for Sri Lankan expatriates.

Rajapaksa’s arrogant policy, which he later blamed on experts, led the OIC and Middle East nations to reject Sri Lanka’s repeated requests for credit lines to buy oil and loans before the country collapsed after an unprecedented economic crisis in 2022.

“I think that was a major setback in that point in time with our relationship with the OIC and Middle East, but that’s why we worked overtime to reach out to the OIC and build relationships with them,” Foreign Minister Sabry told reporters at a media briefing on Wednesday (08).

“Wherever we met, we explained the circumstances on which this happened. They do understand that, and their only hope is we not to repeat that kind of discriminatory treatment in the future.”

“But they are happy with the stand Sri Lanka has taken particularly on the Palestinian issue,” Sabry said.

“We have been very very vociferous both in Sri Lanka and outside in all forums in multilateral or otherwise. Basically, when I met with the OIC, when I met Palestinian foreign minister and then generally the Muslim world and the Middle East, they are very very happy with the stance Sri Lanka has taken.”

“So, I can say that the Sri Lankan relationship with the Muslim countries and the Middle East is almost and all-time high.”

Minister Ali Sabry faced harsh criticism from human rights defenders and from members of the Muslim community for what they claimed was his silence in the face of the inhumane, unscientific decision by the Rajapaksa government.

The Rajapaksa government’s stubborn insistence on cremating Muslim and Christian victims of the Covid-19 virus was against the communities’ religious believes and drew widespread condemnation and concern of Muslim countries and leaders.

Rajapaksa, after the economic crisis hit the country, was forced to flee in the face of massive protests against him in July 2022. (Colombo/May 09/2024)

President Ranil Wickremesinghe’s government has temporarily halted foreign research ships after strong security concerns raised by neighbour India and the United States following the visit of two Chinese research vessels in 14 months.

Sabry said Sri Lanka has banned foreign ships for research purpose though they have use the island nation’s ports for replenishments and crew changes.

“What we basically say is not a ban, but a moratorium for a year that until we expand our capacity and build our capacity to understand what is necessary, for which we have appointed a committee. We will have a temporary pause for this particular year for all marine research activity,” he said at a media briefing on Wednesday.

“In the meantime, our navy is building its own capacity. That’s why we made a request to the Japanese to give us a beachcraft to monitor. Those authorities have agreed on that. \So that will give our navy the ability also to do their own research and then once they start working with collaboration with foreign countries.”

“They will act as equal partners to understand the gravity of it subject to that we only allow ports of call. Ports of call, we will continue to allow without a research component.”

Chinese Embassy in Colombo raised strong protest against the move to allow a German research vessel early in March following the island nation’s authorities turned down a Beijing request for a research vessel in February.

When the ban was announced, the government failed to specifically reveal its stance on requests for replenishment or crew change for foreign research vessels.

Sri Lanka is in the process of introducing a SOP (Standard Operation Procedure) for handling foreign research vessels and to improve the capacity of relevant officials in handling foreign research ships.

Two Chinese research ships were allowed to dock in Sri Lanka ports within 14 months through November 2023 with one called for replenishment and the other for research.

Chinese research ship Shi Yan 6 arrived in Sri Lanka in October 2023 and docked in Colombo port, for what Beijing citing was for “geophysical scientific research” in collaboration with the island nation’s National Aquatic Resources Research and Development Agency (NARA).

In August 2022, Chinese navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka for replenishment.

Both drew strong Indian protests citing security concerns in the Indian Ocean.

India uses the Colombo port as its main transshipment hub and accounts for around 70 percent of the total transshipment volume of the port. (Colombo/May 09/2024)

The project was cancelled by Rajapaksa without any discussion with Japan or its main funding agency Japan International Cooperation Agency (JICA) in 2021, leading to severed ties in the diplomatic relations between the two countries.

Sri Lanka President Ranil Wickremesinghe has apologized to the Japanese government in May 2023 in his official visit to Tokyo for the cancellation of the project.

Though Japan has agreed to resume all the project stopped due to Sri Lanka’s unprecedented economic crisis, Tokyo has not agreed to resume the LRT after the then Japanese government went out of way to help Sri Lanka to fund the project.

“What we did was, we made request to them. We haven’t agreed on that,” Sabry told reporters at a media briefing on Wednesday (08).

“The agreement right now is to restart what was commenced and stalled at the time of crisis. LRT is a different thing. We told that we are keen on restarting the LRT. Nothing further was discussed on LRT. We expressed on our side that we are keen.”

The cancellation of the JICA-funded project by President Gotabaya Rajapaksa’s government, which was closer to Beijing has hurt Japan, top Sri Lankan diplomats have said.

The East Asian nation has long been the top concessional financial aid provider to Sri Lanka with mutually beneficial diplomatic ties going back seven decades.

Sri Lanka has agreed to pay about $3.4 million (about billion Sri Lankan rupees) to a consultancy led by Japanese firms, after the LRT project was cancelled suddenly. (Colombo/May 09/2024)

Kamalkawa made the comments after meeting her Sri Lankan counterpart Ali Sabry in Colombo.

“The restoration of stability and economic development in Sri Lanka, which is at a strategic location in the Indian Ocean, is essential for the stability and prosperity of the entire Indo-Pacific region,” Kamalkawa told reporters in Colombo.

Kamalkawa said she had conveyed Japan’s expectation for the early signing of the MOUs between the Officials Creditor Committee (OCC) and Sri Lanka. Japan co-chairs the OCC.

“This stressed the importance of reaching a debt restructuring agreement with all the creditors in a transparent and comparable manner,” she said.

“I also conveyed Japan’s intention to further support Sri Lanka’s development by swiftly resuming existing yen loan projects once the MOU on debt restructuring is signed and the Sri Lankan government’s intention to swiftly conclude a bilateral agreement is confirmed.”

Diplomatic ties between Japan and Sri Lanka hit low after former president Gotabaya Rajapaksa unilaterally cancelled a $1.5 billion railway project.

Sri Lanka President Ranil Wickremesinghe when visited Japan in May last year apologized to the Japanese government for the unilateral cancellation of a Japan-funded $1.5 billion light rail transit (LRT) project.

LRT CANCELLATION 

The cancellation of the Japan International Cooperation Agency (JICA)-funded project was controversial in Sri Lanka after the government under then President Gotabaya Rajapaksa, which was closer to Beijing, unilaterally suspended the project as well as another $500 million tripartite deal to develop the Colombo Port’s Eastern Container Terminal (ETC) together with India.

Japan halted all its yen loan funded projects after Sri Lanka defaulted, as its lending agency is barred from increasing loans to a country in debt distress.

Japan has given grants to help over the crisis and facilitated discussions to speed up bilateral debt restructuring.

Japanese Foreign Minister did not say if the LRT project is also included in the raft of projects intended to be resumed soon after signing the MOU.

Sri Lanka defaulted on its external debt in April 2022, after printing money to cut rates and target ‘potential output’ (macro-economic policy) after the end of a civil war under a ‘flexible’ inflation targeting regime triggering serial currency crisis and a steady spike in foreign debt.

Gotabaya Rajapaksa’s 2020 tax cuts were added to record money printing to cut rates, in yet another attempt to push up growth after what state macro-economists claimed was a ‘persistent output gap’.

Wickremesinghe who is seen as a pro-Japanese leader has helped to rebuild the diplomatic ties with Japan in the last two years.

Foreign Minister Kamalkawa said emphasized the importance of various reforms undertaken by Sri Lanka for the re-normalization of the Sri Lankan economy.

“Furthermore, Japan and Sri Lanka are both island nations surrounded by sea. Japan intends to further strengthen cooperation with Sri Lanka in the maritime domain in order to realize a “Free and Open Indo-Pacific”, she said.

Japan plays a crucial role in the Quad, which is a quadrilateral Security Dialogue and a strategic forum involving the United States, Japan, Australia, and India amid concerns over Chinese breaches in the Indian Ocean.

Japan also plays a crucial role in the broader Indo-Pacific region due to its strategic location, economic power, and commitment to maintaining a free, open, and rules-based international order.

Kamalkawa said Japan will offer a vessel to Sri Lanka in the request from Sri Lanka equipped with sonar to be used for compiling data and charts. (Colombo/May 4/2024)

Philippe Lazzarini, head of UNRWA, in a letter addressed to President Ranil Wickremesinghe, “expressed sincere appreciation for Sri Lanka’s substantial financial contribution towards addressing the humanitarian crisis in the Gaza Strip,” a statement by the president’s media division said.

“Lazzarini emphasized the dire situation faced by over two million Palestinians in Gaza, particularly the majority who are Palestine Refugees under UNRWA’s mandate. Despite formidable challenges, UNRWA staff remain steadfast in delivering essential aid, advocating for adherence to international humanitarian law, and ensuring continuous humanitarian support across Gaza.”

The contribution from Sri Lanka to UNRWA “will significantly bolster efforts to address critical humanitarian needs, especially for the more than a million individuals seeking shelter in UNRWA facilities.”

Expressing gratitude for Sri Lanka’s unwavering commitment to Palestine Refugees and to UNRWA, Lazzarini conveyed confidence in continued support from the Sri Lankan government, according to the statement.

The deadline for the Children of Gaza Fund has now been extended until May 31. Originally scheduled to conclude on April 30, the extension follows appeals from across the island.

Those wishing to donate should deposit their contributions to Bank of Ceylon (7010), Taprobane Branch (747), account number 7040016 before the deadline. Donors are also requested to forward the receipt of their deposit to 077-9730396 via WhatsApp, as per the instructions from the Presidential Secretariat. (Colombo/May1/2024)

“Countries in the global south need the support of the global north on having access to low cost funding, debt relief, transition of latest technology, the digital divide. So I think this is time for the global north to walk the talk and collaborate,” he said.

Sabry was speaking at a panel on ‘North to South, East to West: Rebuilding Trust’ at the Special Meeting on Global Collaboration, Growth and Energy for Development 2024.

The minster tweeted that, during the discussion, he had noted that peace and stability lead to development and prosperity and competing powers must keep the channels of communication open.

“Peace and stability is very important. As a result of which, as you pointed out, though economies or GDPs have grown eight times despite the challenges, a precondition was peace and stability. So as we, members of the global south, would like and request members of the global north and the players who have so much power — with great power comes great responsibility — don’t close the channels of diplomacy. Open channels of communication,” he said.

High Representative of the EU for Foreign Affairs and Security Policy/Vice-President of the European Commission Josep Borrell Fontelles who spoke on the same panel also called for increased cooperation.

“We need more cooperation. Climate, demography, technology, everything needs more cooperation,” he said.

The world has to start respecting the existing rules and amend those to suit modern needs, said Fontelles.

“We don’t have to re-invent the wheel. Many things could work, the way they are. Why they don’t work is because there’s a big gap in what we say and what we do,” he said. (Colombo/Apr29/2024)

“It’s the same German research vessel came last month. It came around New Year time when it was returning and the ship was allowed,” a top Foreign Ministry official told Economy Next referring to Sri Lanka’s traditional New Year celebrated on April 14.

Another Foreign Ministry official confirmed the German research vessel’s Colombo port call.

The Foreign Ministry last month clarified a confusion related to ban on foreign research vessels.

It said Sri Lanka will allow offshore research ships for replenishment at the island nation ports despite the one-year ban on such vessels. #

The clarification came after strong protest by China over Sri Lanka allowing the same German research vessel last month.

Chinese Embassy in Colombo raised strong protest against the move to allow a German research vessel early in March following the island nation’s authorities turned down a Beijing request for a research vessel in February.

President Ranil Wickremesinghe’s government has temporarily halted foreign research ships after strong security concerns raised by neighbour India and the United States following the visit of two Chinese research vessels in 14 months.

When the ban was announced, the government failed to specifically reveal its stance on requests for replenishment or crew change for foreign research vessels.

Sri Lanka is in the process of introducing a SOP (Standard Operation Procedure) for handling foreign research vessels and to improve the capacity of relevant officials in handling foreign research ships.

Two Chinese research ships were allowed to dock in Sri Lanka ports within 14 months through November 2023 with one called for replenishment and the other for research.

Chinese research ship Shi Yan 6 arrived in Sri Lanka in October 2023 and docked in Colombo port, for what Beijing citing was for “geophysical scientific research” in collaboration with the island nation’s National Aquatic Resources Research and Development Agency (NARA).

In August 2022, Chinese navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka for replenishment.

Both drew strong Indian protests citing security concerns in the Indian Ocean.

India uses the Colombo port as its main transshipment hub and accounts for around 70 percent of the total transshipment volume of the port. (Colombo/ April 26/2024)

Most developing nations are depending on developed nations and such dependence has deprived most developing nations of being with its own identity and independence.

According to the United Nations Conference on Trade and Development (UNCTAD), the Global South broadly comprises Africa, Latin America and the Caribbean, Asia (excluding Israel, Japan, and South Korea), and Oceania (excluding Australia and New Zealand).

Most of the Global South’s countries are commonly identified as lacking in their standard of living, which includes having lower incomes, high levels of poverty, high population growth rates, inadequate housing, limited educational opportunities, and deficient health systems, among other issues.

Additionally, these countries’ cities are characterized by their poor infrastructure.

Iran President Raisi is in Sri Lanka for a half a day visit to launch a Tehran-funded Uma Oya multipurpose development project  and to sign five bilateral deals. His visit comes 10 days after Iran attacked Israel.

“Following the inauguration of the Uma Oya multipurpose development project, President Ranil Wickremesinghe expressed gratitude to Iran for their technical support,” the PMD said in a statement.

“He highlighted the south’s desire to establish its identity & independence, suggesting that southern countries should now strive for their own strength and autonomy.”

President’s statement comes as Sri Lanka is heavily under pressure to address its past human rights violations mainly by the Western nations like the United States, Britain, Canada, and some European Union nations, which are mostly in the Global North group.

Global North broadly comprises Northern America and Europe, Israel, Japan, South Korea, Australia, and New Zealand.

Political analysts say Sri Lanka has been trying to follow a non-aligned policy, but some political leaders want to go with an emerging world order with countries like China, Iran, and Russia in the face of direct and indirect interventions by the West.

The island nation has witnessed a pro-Chinese foreign policy from 2010-2015 and a pro-Indian from 2015-2017 amid government changes after elections.

President Wickremesinghe government, however, has stick to a non-aligned foreign policy with giving the island nation’s India a priority. However, the government has continued its relations with China, Russia, and Iran despite heavy pressure from the West to act otherwise. (Colombo/April 24/2022)

CARAT Sri Lanka will feature the expertise of the US Fleet Anti-Terrorism Security Team (FAST), a US Marine Corps unit specialised in security and anti-terrorism for naval assets, engaging alongside their Sri Lanka Navy Marine counterparts on a full spectrum of naval capabilities, the embassy said in a statement on Monday April 22.

“The CARAT Sri Lanka exercise includes a Women, Peace, and Security Symposium on April 24 to promote the vital roles women play in peace negotiations, conflict management, and resolution.  With approximately 70 U.S. personnel working with their Sri Lanka military partners, this fifth iteration of the CARAT Sri Lanka bilateral maritime exercise underscores the strong partnership and shared commitment of the United States and Sri Lanka to maintain a free and open Indo-Pacific,” the statement said.

US Ambassador to Sri Lanka Julie Chung was quoted as saying that, since Sri Lanka began participating in CARAT in 2017, it has grown to become the most significant bilateral military engagement between the United States and Sri Lanka, reflecting our shared commitment to the peace and stability of the Indian Ocean Region.

“This exercise demonstrates the importance the United States places on nurturing partnerships, encouraging cooperation, and advancing maritime capabilities, enabling the US and Sri Lankan navies to better operate together to address maritime security challenges in the Indo-Pacific,” she said.

Sri Lanka Navy Commander Vice Admiral Priyantha Perera was quoted as saying that taking part in such exercises enables the Sri Lanka Navy to gain confidence, experience and operational training by working alongside an experienced and well-equipped navy like the US Navy.

“This can be particularly valuable in situations where the Sri Lanka Navy is required to engage with multiple array of navies for combined operations in the establishment of freedom of navigation and rules-based order in the ocean region, as well as responding to traditional and nontraditional threats in the maritime domain,” he said.

Senior Defense Official at the US Embassy Anthony Nelson said the aim of CARAT is to enhance the ability of the two countries’ navies to defend their own nations and uphold the international standards that serve mutual interests.

“But it’s not just about honing our naval capabilities; CARAT Sri Lanka 2024 stands as a powerful symbol of our partnership, building lasting friendships and mutual understanding by working shoulder to shoulder with our Sri Lankan counterparts,” he said.

Initiated in 1995, CARAT is a series of bilateral and multilateral exercises between the United States and Bangladesh, Brunei, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Sri Lanka, Thailand, and Timor-Leste. Celebrating its 30th anniversary, the embassy’s statement said, this exercise series is designed to enhance the operational collaboration between the US and partner navies’ abilities to operate together in response to traditional and non-traditional maritime security challenges in the Indo-Pacific region and build relationships through sports, cultural, and information exchanges. (Colombo/Apr22/2024)

The announcement on President Raisi’s visit comes two days after Iran launched explosive drones and fired missiles at Israel in its first direct attack on Israeli territory, a retaliatory strike that raised the threat of a wider regional conflict.

“The President is visiting to inaugurate the Omaoya project. He will be on a one-day visit,” an official at Iran embassy in Colombo told EconomyNext.

A Sri Lankan Foreign Ministry official confirmed the move.

This is the first time an Iranian President coming to Sri Lanka Iranian after then President Mahmoud Ahmadinejad’s visit in April 2008.

The Omaoya project was originally scheduled to be completed in 2015, but had been delayed several times due to unexpected issued faced during the project cycle and funding issue after the United States imposed economic sanctions on Iran and economic crisis in Sri Lanka.

The project was started in 2010 and the funding was to be received as loan grant from the Iranian government. However, Iran was able to provide $50 million before the sanctions. Sri Lanka has to bear the cost after the sanctions.

The project includes storing water in two reservoirs with dams before being brought through a 23 km tunnel to two turbines located underground and generating hydro power with a capacity of 120 megawatts and added to the national grid.

After power generation, the water is expected to be brought to three reservoirs while supplying water to 20,000 acres of old and new paddy fields in both the Yala and Maha cultivating seasons.

The Memorandum of Understanding (MOU) for the construction was signed between the two countries in 2007 while Sri Lanka’s Cabinet approved the execution of the contract agreement between the Executing Agency, Sri Lanka’s Ministry of Irrigation and Water Management (MOIWM) of the GOSL and Iran’s FARAB Energy and Water Projects (FC).

When commencing the project on March 15, 2010, the scheduled date of completion of the project was on March 15, 2015. But the schedule completion date was extended to December 31, 2020 due to the unexpected water ingress into the head race tunnel and followed by social impacts.

The trade between the both countries suffered after the US sanctions. However, Sri Lanka inked a deal in December 2021 with Iran to set off export of tea to Iran against a legacy oil credit owed by state-run Ceylon Petroleum Corporation to the National Iranian Oil Company.

Sri Lanka owes $251 million for crude imported before the US imposed sanctions on Iran. (Colombo/April 15/2024)

The conversation between the two comes days after Sri Lanka Prime Minister Dinesh Gunawardena ended an official visit to China in which he met President Xi Jinping and his counterpart Li Qiang in Beijing amid discussions over further investments in Sri Lanka and concerns over banning Chinese research ships.

The United States along with India is highly concerned over increasing Chinese influence in Sri Lanka, which is located in a strategic location in the Asia.

China already owns a port and a proclaimed land next to the main Colombo port in Sri Lanka and analysts say the Beijing’s ownership of assets has raised doubts if China is planning to use Sri Lanka as a military base. China has denied this and said its relationship with Sri Lanka is only based on commercial aspects.

The discussion between Sullivan and Ratnayaka focused on a range of crucial topics aimed at bolstering bilateral relations between the two nations, the President’s Media Division (PMD) said.

“Central to their discussion was the unwavering U.S. commitment to supporting Sri Lanka’s security and sovereignty,” the PMD said in a statement.

“Acknowledging Sri Lanka’s ongoing endeavours, Sullivan emphasized the importance of completing the fiscal, monetary, and governance aspects of the IMF program.”

The US along with India has raised possible threats of increasing Chinese influence in Sri Lanka, government officials have said. Both  countries see China as a security threat to the Indian Ocean region, they say.

“The conversation also delved into future prospects for collaboration between the two countries, exploring avenues for enhanced cooperation in various spheres,” the PMD said.

“Sullivan conveyed his keen interest in fostering continued engagement with Sri Lanka, underscoring the mutual objective of advancing peace and security in the region.”

“This dialogue marks a pivotal moment in U.S.-Sri Lanka relations, demonstrating a shared commitment to promoting stability and prosperity in the Indo-Pacific region.” (Colombo/April 13/2024)

“For us, as close and proximate neighbours, cooperation is the only option. It is not driven by choice and opportunity alone,” Jha said speaking at the India-Sri Lanka Defence Seminar held in Colombo on Wednesday.

“Our approach to Sri Lanka is guided by our neighbourhood-first policy and our SAGAR vision. This entails that we share with our closest neighbours all that we can based on their needs and aspirations. It also entails that our approach remains generous and non-reciprocal.”

India looked forward to working with Sri Lanka to take forward our common endeavour to deepen and further strengthen our defence cooperation, the high commissioner said. 

Bilateral cooperation between the countries is expanding and diversifying, “We now cooperate in wider range of areas including infrastructure and connectivity, deeper economic engagement, trade and investment, culture and education, tourism and people to people ties.” (Colombo/Apr10/2024)
 
Indian High Commissioner’s full speech:

Ayubowan, Namaskaar, Good Morning

It is my pleasure to welcome you to the Second Seminar on India-Sri Lanka Defence Cooperation that we are organizing in Colombo. I thank you all for attending. My deep appreciation to the Hon. State Minister Mr. Tennekoon for his presence here today.

I must also thank the Chief of Defence Staff of Sri Lanka and the Commanders of the Air Force and Navy for their gracious presence. We value the support extended by the Ministry of Defence of Sri Lanka. We look forward to working with our Sri Lankan friends to take forward our common endeavour to deepen and further strengthen our defence cooperation. 

I am also grateful for the presence of Indian delegation led by Additional Secretary from Ministry of Defence. He is leading a large and very diverse delegation from the Indian defence-industry, including some leading Indian Defence Public Sector entities and wide range of industry players from the private sector.

Distinguished Guests
Relations between India and Sri Lanka are uniquely fraternal. They are very special and unlike any other we have with other countries.
 

Our shared civilizational past, common heritage and strong cultural connect create a natural warmth and comfort in dealing with each other. For us, as close and proximate neighbours, cooperation is the only option.

It is not driven by choice and opportunity alone. Our approach to Sri Lanka is guided by our neighbourhood-first policy and our SAGAR vision. This entails that we share with our closest neighbours all that we can based on their needs and aspirations. It also entails that our approach remains generous and non-reciprocal.
 

Our support in recent years to Sri Lanka, during the Covid pandemic and the economic crisis,were driven by our sense of responsibility and obligation for our closest friend and neighbour. We stood shoulder to shoulder with our civilizational twin, when it was needed most, and without any hesitation. Many of you will agree that India is and will remain Sri Lanka’s most reliable friend and a trusted and dependable partner.

Our bilateral cooperation is expanding and diversifying. It is buttressed by India’s growing national capabilities.
 

We now cooperate in wider range of areas including infrastructure and connectivity, deeper economic engagement, trade and investment, culture and education, tourism and people to people ties.

Like in other areas, we are cooperating closely on security and defence matters. Because of our geography, our security is interlinked and intertwined. And when we speak of security, we must remember that it has acquired a wider meaning than we have traditionally associated with it.
 

After the covid pandemic and impact of Russia-Ukraine conflict, it has come to include energy, health,food and even economic security. This is because technology now permeates all aspects of our lives, and looking at security through a narrow and segmented lens is no longer possible. Our response, therefore, must keep this wider definition in mind. We must also act accordingly to address security in its entirety keeping the complex inter-linkages in mind.
 

Friends,
In recent years, the vision of Atmanirbhar Bharat, which means self-reliant India, has led to significant capability development within the Indian defence industry. The Government of India has promoted this vision through enabling policies and frameworks, initiatives such as establishment of defence industry corridors, and supporting and handholding different stakeholders.We have also promoted collaborations between private and government owned enterprises.
 

We have invested in research and development and promoted the use of innovation and new age technologies to build capabilities that are future-ready.

Our efforts are showing rich dividends in the last one decade. The Indian defence industry today rolls out state-of-the-art systems, advanced technologies and world class equipment. To name a few, this ranges from fighter aircrafts and helicopters to naval vessels, from electronic warfare systems to cyber security solutions and from small arms to large caliber precision long range artillery systems.

 
Not only are we producing for our own national requirements, but we have been willing to make these capabilities available to our friendly partner countries like Sri Lanka. In fact, our defence exports today stand at nearly 2.6 billion US Dollars. This is a ten-fold increase over the past five years. We export defence hardware and software to more than 85 countries with more than 100 indigenous firms active in this field.

In this effort, we have relied upon our 16 defence public sector undertakings, which have been the backbone of our defence industrial complex, and supplemented their efforts with a growing private sector participation. Our Innovations for Defence Excellence or iDEX initiative also help us building capabilities in critical and strategic technologies to bridge the gap between the expectations and requirements of the modern Armed Forces by fostering a vibrant defence innovation ecosystem.

Today, India can offer high quality, low cost,and reliable technology in defence with an assured supply chain for long term maintenance support.
 

As in other sectors, our endeavour has been that our growing capabilities must also benefit our neighbours, including Sri Lanka. We are committed to supporting the needs and requirements of the Sri Lankan Armed Forces.
I am therefore happy that the Seminar today will focus on our security and defence cooperation and help identify our shared priorities in this regard. That this Seminar is being held in Sri Lanka for the second time in the last two years underscores the value we attach to our defence partnership with Sri Lanka.
 

The large defence industry delegation from India further underlines our strong commitment to building industrial cooperation in the defence sector in Sri Lanka. We would also be showcasing the various advanced platforms and equipment to enable the Sri Lankan armed forces to familiarize themselves with various capabilities that have been developed indigenously in India. We are confident that these can also become viable, affordable and modern solutions for the Sri Lankan military.

 
I once again thank all of you for participating in this exercise. I wish the seminar and its participants all success. With your close cooperation, we are confident that we will see important and meaningful outcomes.
Thank you.

Many Sri Lankans have blamed the government for expensive commodity prices in the country amid an unprecedented rise in the poverty level after the 2022 economic crisis.

President Ranil Wickremesinghe government has been in the process of reducing the prices of essential goods ahead of the festival season. Muslims will celebrate Eid and both Sinhalese and Tamils will celebrate their traditional new year this week.

Wickremesinghe government has been also trying to win people ahead of a presidential election between September 18 and October 18 this year.

An export ban on onions has hit the Sri Lankan consumers with the price of big onion rising as mush as 300 percent in local markets with the domestic onion production was hit by unusual heavy rains in the latter part of 2023.

China entered to big onion market early this month and will sell its big onion at 375 rupees per kilogram at the island nation’s state-owned wholesale and retail chain ‘Lanka Sathosa’ outlets.

Big onions imported from India and Pakistan will be sold at 445 rupees, 70 rupees or 18.7 percent higher than the Chinese, the latest price list announced by Lanka Sathosa showed.

Millions of Sri Lankans have hardly celebrated festivals since Easter Sunday suicide attacks that killed at least 269 people in April 2019 with Covid pandemic and the economic crisis hit the purchasing power of the people.

FAILED ATTEMPTS  

Sri Lanka’s  attempts to secure an exemption from Indian ban on big onion exports failed and that led importers to look into other markets for purchases at lower costs, government officials have said.

India’s onion export ban has led to price spikes in Sri Lanka. India, the world’s biggest exporter of onions, banned shipments on December 8, last year after domestic prices more than doubled in three months following a drop in production.

The move also came as Narendra Modi’s government is trying to woo voters with lower cost of living by making the commodity available in Indian markets at a lower price ahead of parliamentary polls later this month.

The retail price of big onions ranges between Rs. 400-500 a kilo at the moment in Sri Lanka.

Trade Minister Nalin Fernando on March 28 said Sri Lanka will import onions from China.

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Sri Lanka grows onions under import tax protection and domestic production is seasonal and imports supplement demand.

3,500 hectares of onions were planted in the 2023 yala (minor cultivation) season, but crops were destroyed by unusually heavy rains before harvesting, the Department of Agriculture said.

Demand remains high ahead of several religious and cultural festivals.

FIRST FUEL, NOW ONION

After fighting for strategic and key infrastructure projects, both China and India are now trying to compete on commodities like onion and fuel, economists say.

China’s state-owned Sinopec is in the process of building a $4.5 billion refinery in Sri Lanka’s deep southern port district of Hambantota, where China has control of the island nation’s largest port.

Sinopec also has been given license for fuel retailing in Sri Lanka. Before the arrival of Sinopec, state-owned Indian Oil Corporation has been enjoying an exorbitant profit in Sri Lanka, analysts say.

India has repeatedly complained to Sri Lankan government over Chinese vessels in Sri Lankan waters citing they were posing security threats to the Indian Ocean.

President Ranil Wickremesinghe’s government in January banned research ships while Beijing has sought approval for one such vessel for research purpose. (Colombo/April 9. 2024)

The project was scheduled to be completed in 2015, but had been delayed several times due to unexpected issued faced during the project cycle and funding issue after the United States imposed economic sanctions on Iran and economic crisis in Sri Lanka.

The project was started in 2010 and the funding was to be received as loan grant from the Iranian government. However, Iran was able to provide $50 million before the sanctions. Sri Lanka has to bear the cost after the sanctions.

“President Ranil Wickremesinghe gave instructions to open the Umaoya Multipurpose Development Project at the end of April,” the Irrigation Ministry said quoting Pavithra Vanniarachchi, Minister of Irrigation, Wildlife and Forestry.

The project includes storing water in two reservoirs with dams before being brought through a 23 km tunnel to two turbines located underground and generating hydro power with a capacity of 120 megawatts and added to the national grid.

After power generation, the water is expected to be brought to three reservoirs while supplying water to 20,000 acres of old and new paddy fields in both the Yala and Maha cultivating seasons.

It also expects to fulfill the need of drinking water the people of Badulla and Monaragala districts.

The Memorandum of Understanding (MOU) for the construction was signed between the two countries in 2007 while Sri Lanka’s Cabinet approved the execution of the contract agreement between the Executing Agency, Sri Lanka’s Ministry of Irrigation and Water Management (MOIWM) of the GOSL and Iran’s FARAB Energy and Water Projects (FC).

When commencing the project on March 15, 2010, the scheduled date of completion of the project was on March 15, 2015. But the schedule completion date was extended to December 31, 2020 due to the unexpected water ingress into the head race tunnel and followed by social impacts. (Colombo/April 08/2024)

Prime Minister Dinesh Gunawardena met Chinese President Xi Jinping and Prime Minister Li Qiang in Beijing before participating in BOAO Forum for Asia Annual Conference 2024 in Hainan in China.

“The visit was good. There was no pressure,” Semasinghe told EconomyNext when asked if there were any specific pressure from China after Beijing’s strong protest over Sri Lanka allowing a German research vessel despite a one-year ban on all research ships was in place.

“No project was discussed. We just wanted to conclude the (debt) resolutions. We signed some MOUs, and discussed on the debt restructuring.”

The official visit to China is significant as Sri Lanka needs Beijing’s help to conclude bilateral and commercial debt restructuring.

The International Monetary Fund (IMF) has said any debt restructuring mechanism with Chinese government and private firms should be in par with the other debt restructuring mechanisms.

During the visit, Sri Lanka held bilateral talks with paying  more attention to increasing overall cooperation in the social, cultural, educational, and agricultural sectors in addition to economic cooperation. (Colombo/April 1/2024)

Prime Minister Gunawardena’s six-day official visit to China comes after Beijing raised concerns over Sri Lanka’s decision to ban its research vessels before allowing a German research ship for replenishment early this month.

“Both countries agreed to continue to act under the friendship, peace, mutual respect and fivefold principle in international affairs that do not interfere in the internal affairs of a country,” Prime Minister Gunawardena’s office said in a statement on the meeting with the Chinese President Xi.

“It was emphasized that bilateral relations should be based on mutual respect and mutual productivity between the countries, and acting according to that policy would set a good example for both countries.”

“The Chinese President also assured that China will support the schemes necessary for the development of Sri Lanka as soon as they are presented. Chinese President assured continuous support of China to Sri Lanka’s efforts for political and socioeconomic progress. Chinese President said that China will always stand for safeguarding independence, territorial integrity and sovereignty of Sri Lanka.”

CLOSE CORPORATION WITH CPC

Xi also stated that the party representing the Prime Minister and other parties in Sri Lanka hope to further increase cooperation with the Chinese Communist Party (CPC), it said.

“Prime Minister thanked the President for assistance provided during the unprecedented economic crisis and extending debt restructuring facilities,” the PM office said.

“He explained the progress in implementation of decisions taken during the visit of President Ranil Wickremesinghe to China. Prime Minister also thanked President Xi Jinping for the support extended to sectors such as school education, agriculture, health, technology, culture and religion.”

Sri Lanka banned all foreign research vessels after President Wickremesinghe’s government allowed two Chinese research ships within 14 months. The first one in August 2022 called for crew change and replenishment while the second one in October 2023 came for research with a local Sri Lankan organization.

Sri Lanka has imposed the ban after strong protest by India, government officials have told EconomyNext.

Before the meeting with Xi jinping, Prime Minister Gunawardena met Chinese Prime Minister Li Qiang.

The Chinese Prime Minister assured to his sri Lankan counterpart Beijing’s assistance to Sri Lanka’s debt restructuring process continuously and help Sri Lanka to develop its economy .

“During the high level bilateral talks held today (Wednesday) in Beijing, the Chinese Prime Minister praised Sri Lanka’s economic progress after a period of economic downside,” PM office said in a separate statement.

“Premier Li Qiang said his country world also extend assistance to develop Katunayake International Airport, Hambantota Port and Colombo Port City.”

Already Japan International Cooperation Agency (JICA) last month said they will support the construction of the second terminal of the Katunayake Airport after the financial restructuring process is implemented by the International Monetary Fund (IMF).

In January, Sri Lanka government said an Indian firm is in the process of being given to manage Sri Lanka’s three airports including the main airport where the island nation has now seen an over saturation in foreign tourists. (Colombo/March 28/2024)