Sri Lanka Pursues Economic Cooperation Agreements with Japan and India to Enhance Integration with India

President Ranil Wickremesinghe highlighted the significance of fortifying economic cooperation and regional integration from Japan to India, with a specific focus on strengthening ties with India. The President delivered these remarks while addressing the Head of State Session of the 3rd Voice of Global South Summit, held under the theme “An Empowered Global South for a Sustainable Future.”

Speaking from the President’s House in Anuradhapura virtually yesterday (17), President Wickremesinghe underscored Sri Lanka’s strategic commitment to expanding economic partnerships across Asia, particularly through the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). The President acknowledged that as the Bay of Bengal region emerges as a hub of economic growth, the importance of BIMSTEC continues to grow. Sri Lanka, as a member, aims for closer economic integration with India and is exploring economic cooperation agreements extending from Japan to India.

The conference, chaired by Indian Prime Minister Narendra Modi, brought together heads of state from various countries. During his address, President Wickremesinghe commended India’s efforts to strengthen the Global South, recognizing that the dominance of the West in global leadership is diminishing. He praised the Voice of the Global South Summit as a vital platform for building consensus on challenges faced by developing nations.

Reflecting on Indo-Sri Lankan relations, the President highlighted the shared “Vision” statement between the two nations, celebrating their historical cooperation and setting the groundwork for future collaboration. He expressed optimism that this vision will lead to deeper integration between Sri Lanka and India across different sectors.

President Wickremesinghe also expressed gratitude to Prime Minister Modi and the people of India for their assistance during Sri Lanka’s recent economic crisis. The President recognized that India’s support played a crucial role in helping Sri Lanka overcome the challenges of the past two years and recover from bankruptcy.

President Wickremesinghe elaborated further,

“Your Excellencies, Sri Lanka appreciates India for hosting the third virtual seminar on Voices of the Global South. This series allows us to engage with each other to comprehend our diverse perspectives, aiding us in reaching a unified position on many issues affecting the South. We are at a juncture where the West can no longer dominate global leadership and, in fact, has become part of the issue. Ukraine and Gaza serve as prime examples, which I will not delve into as they have already been discussed by earlier speakers. In this context, we must acknowledge India’s efforts to strengthen the Global South.

Your Excellencies, let me discuss my country for a moment. Sri Lanka has reached agreements with the Official Creditor Countries, the Export-Import Bank of China, the IMF, the World Bank, and the ADB to emerge from bankruptcy. At this stage, I must acknowledge the generosity of Prime Minister Modi and India, whose contributions enabled us to navigate the two years of bankruptcy, which imposed a heavy burden on our people. The Vision Statement agreed upon by our countries outlines the pathway for closer relations, emphasizing our 2,000-year history of cooperation. This will ultimately result in deeper integration between our nations in various sectors.

We are in the process of finalizing the Comprehensive Economic and Technological Agreement. We will also launch connectivity in power, transport, and land, and we will concentrate on the development of Trincomalee Harbour, among other projects we have agreed upon. These endeavors will assist us in enhancing our knowledge and technology, enabling us to transition to a digital economy. I must express gratitude to India for the aid it has extended.

I should also mention the Bay of Bengal, which is evolving as a center of growth, with BIMSTEC gaining increased significance. As a member of BIMSTEC, Sri Lanka, with its close economic integration with India, aims for membership in the RCEP, with the goal of establishing economic cooperation agreements extending from Japan to India. We acknowledge the Bay of Bengal as crucial for the development of our economies.

Considering that many of the topics I intended to cover have already been addressed by previous speakers, I would like to note that the post-1989 era, beginning with the Soviet Union’s collapse, characterized by notions such as the clash of civilizations and the end of history, which emphasized the Western system’s dominance, is now drawing to a close. This summit, along with similar gatherings, the expansion of BRICS, and the enlargement of the G20, will lay the groundwork for a new order where the Global South will create a lasting impact. I must thank India, which, since its independence, has worked to unite Afro-Asian countries and continues to play a role in fostering closer unity among all of us. Thank you.