Sri Lanka, as a country, is endowed with numerous potentials though they are yet to be realised fully. In the context of current global dynamics, its strategic positioning abutting vital sea-lanes and in close proximity to major powerhouses – India and China – is apparently the best among its potentials if harnessed properly.
To the South, the country’s coast fronts the greater Indian Ocean, and to the North it opens to the Indian Ocean’s marginal seas: the Arabian Sea, Gulf of Mannar, Palk Bay and the Bay of Bengal.The country’s positioning has made it relevant to all the major powers in the world, and at times, the governments in Sri Lanka come under enormous pressure in reconciling competing interests of the key players.Still, the geostrategic positioning is nothing but the best bargaining tool of Sri Lanka in pursuing its interest with the world powers, and the government led by President Ranil Wickremesinghe has been successful in doing so in recent times to a great extent.
Sri Lanka’s relevance to the world became all the more obvious this time when Japanese Foreign Minister Yoko Kamikawa visited Sri Lanka and made remarks in specific reference to it and its importance for an economically influential country like hers.
In her remarks, she said strategically placed Sri Lanka’s economic recovery is essential for stability in the Indo-Pacific region.Sri Lanka is currently going through a crisis period.The country has just started to recover from its worst sever economic crisis. It is now on the verge of conclusion of bilateral debt restructuring.Japan is playing a key role as the chair of the Official Creditors Committee.
Foreign debt
Japanese Foreign Minister Yoko Kamikawa urged the Sri Lankan government last Saturday to swiftly restructure its foreign debt. She said this after talks with her Sri Lankan counterpart Ali Sabry.
She also said that Sri Lanka should secure agreements with bilateral lenders and international sovereign bondholders to unlock suspended foreign funding.
The Sri Lankan government which defaulted on its $46 billion external debt in April 2022, had hoped to finalise deals with foreign creditors by April but there have been no final agreements yet.
Kamikawa said she “stressed the importance of reaching a debt restructuring agreement with all the creditors,” including China — the largest bilateral lender to the island. “I also conveyed Japan’s intention to further support Sri Lanka’s development by swiftly resuming existing yen loan projects (after a debt restructuring deal),” she said.
She said Japan considered Sri Lanka’s economic recovery to be crucial for the entire region. The island is located halfway along the main east-west international shipping route. “The restoration of stability and economic development of Sri Lanka, which is at a strategic location in the India Ocean, is essential for the stability and prosperity of the entire Indo-Pacific region,” she added.
Sri Lanka must secure agreement from all official creditors.
Natural resources
Japan has every reason to look for stability in Sri Lanka. As a country not blessed with natural resources, Japan’s economy is heavily dependent on transnational trading.As such, it needs to secure access to vital sea-lanes across the globe and keep them free of conflict for the smooth transfer of goods. This has opened up an avenue for Sri Lanka to enhance its ties with Sri Lanka from a position of strength. Of course, there has been a solid foundation for fostering ties with Japan for long.
Over 70 years ago, at the San Francisco Peace Conference, Sri Lanka’s Representative J.R. Jayewardene made a historic speech in which he, quoting the Buddha, urged the world community to be magnanimous towards Japan. The speech later laid the foundation for a solid Sri Lanka-Japan friendship.
President Ranil Wickremesinghe, after assuming office in 2022, made extra efforts to develop ties that remained somewhat strained after the scrapping of the Japan- financed Light Rail Project. Despite such resentment, Japan came out in a major way in the aftermath of the economic crisis to help Sri Lanka tide over the crisis. Its role, as one of the three largest bilateral creditors to Sri Lanka, it now seeks economic stability in Sri Lanka.Strategic positioning, straddling the major trade arteries of the world, has enabled Sri Lanka to stay relevant to Japan in the region.
Besides, Japan offered to help Sri Lanka develop its oceanographic survey capabilities.It is yet another tricky area with geopolitical contestation especially after the arrival of Chinese research vessels into the Exclusive Economic Zone of Sri Lanka and India openly protested it citing security concerns.Sri Lanka even introduced a moratorium on such research activities involving foreign vessels in a move to avert pressure from the big powers otherwise.The one- year moratorium has been sought to develop its own research capacity. Japan responded positively to Sri Lanka’s request.
Underwater sonar
The Japanese Minister announced that her government has finalised a plan to provide Sri Lanka with a vessel equipped with underwater sonar for detecting the location of other vessels in order to improve the country’s oceanographic survey capabilities.
The Japanese government will provide Sri Lanka with a vessel and sonar system worth about ¥1 billion in total.Again, strategic positioning enabled Sri Lanka to secure Japanese assistance.
Hovered, Japan is a country competing with China for strategic influence placing Sri Lanka in a precarious position at times to balance out ties between the two.
China has been making advances into the Indian Ocean in recent years.Chinese oceanographic research vessels have been actively conducting surveys in the vicinity of Sri Lanka. The countries such as Japan and India have found it problematic.
The latest Japanese grant is a countermeasure.But, it speaks volumes about Sri Lanka’s potential to benefit from the world powers. Still, deft diplomacy is needed to ensure the tightrope walk.
