Sri Lanka’s diplomatic synchronicity with neighbourhood

By Dr. Srimal Fernando-Sunday, April 11, 2021

Sri Lanka’s foreign policy has mainly been characterised by synchronising its policies with the multipolar system and balancing the foreign policy manifestation with outreach to different regions and regional groupings, given the increased convergence of the strategic interests of Sri Lanka and its neighbours.

The ever-changing geopolitical scope of the South Asian region has prompted Sri Lanka to forge closer neighbourhood ties. The rationale behind Sri Lanka’s synchronicity with its neighbours is clear, as the neighbouring countries and regional organisations offer the potential for substantial growth and development. The benefits of accessing neighbouring markets are significant, particularly for Sri Lanka, a small island nation. Sri Lanka has for years benefited from the welfare gains of its neighbourhood engagements, and there is a lot more it can still gain.

The focus on neighbourhood diplomacy is a striking feature of contemporary Sri Lankan foreign policy. Notably, President Gotabaya Rajapaksa’s government considers neighbourhood diplomacy a strategic prerequisite for Sri Lanka and its economy. Especially, the need to re-establish Sri Lanka’s strategic place in the Indo pacific region has been a significant motivation for the Sri Lankan government. This has emphasised the reinvigoration of and strengthening ties with Asian neighbours, including the member states of regional organisations such as SAARC, BIMSTEC, and ASEAN. These developments highlight the need for a proactive engagement with Sri Lanka’s neighbours.

India and other SAARC members

India’s rising leadership role in the region and its growing engagement with the South Asian Association for Regional Cooperation (SAARC) are helping to protect India’s common interests and Sri Lanka. Both India and Sri Lanka consider each other to be mutually important for geopolitical and strategic reasons. Under the new “India First” doctrine, Sri Lanka aims to further deepen its engagements with India and protect India’s strategic security interests. Therefore, Sri Lanka’s “India First” is a manifestation of Sri Lanka’s foreign policy from being western-oriented to being neighbourly. Moreover, India’s increased engagement with SAARC and other regional groupings such as ASEAN and BIMSTEC has proven to help protect the mutual interests of both India and Sri Lanka.

Equally, the strategic relations between Sri Lanka and other neighbouring nations such as Pakistan, the Maldives, Bangladesh, Nepal, Bhutan, and Afghanistan have been steadily getting stronger. In this regard, the South Asian Free Trade Area (SAFTA) agreement offers potential for increasing the rate of bilateral trade between Sri Lanka and its SAARC partners. Sri Lanka has also entered into trading agreements such as Free Trade Agreements with Pakistan and India. The FTA with India offer Sri Lanka access to India’s 1.3 billion consumer market. Sri Lanka has also initiated free trade agreement talks with other SAARC member states such as Bangladesh and Nepal.

BIMSTEC and ASEAN

Broader engagements with other Asian partners such as the East Asian nations and BIMSTEC member states have also been a striking feature of Sri Lanka’s diplomacy. With the right balance, through engagements with the ASEAN, Sri Lanka stands to benefit both economically and strategically. Sri Lanka’s engagements with ASEAN and other Asian partners in the East received its momentum during the 2015 to 2019 government.

Over the past few years, Sri Lanka has successfully established closer political and economic ties with ASEAN and other East Asian nations. Notably, Sri Lanka’s engagement with ASEAN and other East Asian partners is mainly driven by economic necessity. These Asian partners provide Sri Lanka with an opportunity to seek profitable economic engagements within the Asian neighbourhood.

Sri Lanka has also been actively engaged with the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and its member states since its establishment. Notably, the engagements between Sri Lanka and BIMSTEC increased when the country assumed the organization’s chairmanship between 2018 and 2020. BIMSTEC has emerged as a key ally for the future of Sri Lanka’s economy. BIMSTEC is an important channel for economic engagements with neighbourhood value chains and production networks such as India, ASEAN, and Bangladesh.

The way forward

For Sri Lanka to reap the economic benefits of its diplomacy, the government should emphasise improving cooperation with neighbouring nations. Arguably, the nature of Sri Lanka’s relations with its immediate neighbours and other partners will go a long way in providing the much-needed impetus for Sri Lanka’s prosperity. Notably, the nature of relations with SAARC nations will determine Sri Lanka’s future in its pursuit of regional continuity, the promotion of Sri Lanka’s strategic interests, and strengthening each other’s economic prosperity. A good neighbourhood policy will undoubtedly help Sri Lanka exploit the vast economic opportunities presented by its neighbours.

(Dr. Srimal Fernando received his PhD in International Affairs. He was the recipient of the prestigious O.P. Jindal Doctoral Fellowship and SAU Scholarship under the SAARC umbrella. He is also an Advisor/Global Editor of Diplomatic Society for South Africa in partnership with Diplomatic World Institute in Brussels.)