U.S. – SRI LANKA ENGAGEMENT: Reviewing Robust Relations

By Indoosan Shanthakumaran

In recent years, the relationship between the United States and Sri Lanka has witnessed a substantial transformation, transitioning from conventional foreign aid to a more comprehensive partnership that encompasses economic, environmental, and human rights initiatives to help Sri Lanka come out of the bankruptcy. The United States supported Sri Lanka's development objectives, reconciliation efforts, and regional connectivity through multifaceted collaborations between 2022 and 2024. This article investigates the numerous methods by which the United States assisted Sri Lanka in its development, resulting in enduring effects that surpass financial aid.

Fostering Economic Growth and Governance

The United States Agency for International Development (USAID) signed a defining five-year Development Objectives Assistance Agreement (DOAG) with Sri Lanka in 2022. This agreement facilitated market-driven growth, environmental sustainability, and improved governance. The U.S. actively supported stabilization efforts in Sri Lanka, including aiding in debt restructuring processes and supporting Sri Lanka's engagement with the International Monetary Fund (IMF), in recognition of the country’s economic challenges. By means of these initiatives, the United States promoted private-sector investment, anti-corruption measures, and reforms that are indispensable for long-term economic resilience, transcending financial assistance.

Investing in Sri Lanka

U.S. companies exhibited a fluctuating yet substantial interest in investing in Sri Lanka from 2022 to 2024. The total stock of US Foreign Direct Investment (FDI) in Sri Lanka was valued at $234 million in 2022. IFS (Industrial and Financial Systems), an IT services firm based in the United States, has maintained a substantial presence in Sri Lanka for many years. The company has recently declared its intention to expand its operations in Colombo, citing the country’s highly skilled tech workforce. In that year, the total U.S. Foreign Direct Investment (FDI) stock in Sri Lanka reached $234 million as a result of this expansion. Despite the country's economic instability at the time, several U.S. apparel brands, including Gap and Nike, increased their procurement from Sri Lanka in 2023. However, direct FDI in new facilities was cautious. Nevertheless, Coca-Cola Beverages Sri Lanka Ltd and other organisations maintained their operations and implemented sustainability initiatives, suggesting that there was a persistent interest.

Investor confidence began to slightly improve by 2024 as Sri Lanka made progress in debt restructuring and economic stabilisation. This prompted smaller U.S. tech startups and healthcare companies to investigate joint ventures and partnerships with local firms. Sri Lanka's greatest export market was the United States, despite the fact that it experienced a severe financial crisis in 2022, which resulted in a contraction in GDP and shortages of essential goods.

Foreign investment in Sri Lanka was approximately $730 million in 2023, despite the fact that it was historically lower than that of other comparable countries. The International Development Finance Corporation (DFC) of the United States has allocated up to $553 million in financing for the expansion of the Colombo West International Terminal. This commitment indicates the government's confidence in the private sector's development in Sri Lanka.

The Sri Lankan government’s emphasis on anti-corruption measures and political changes resulted in a notable resurgence in US investment interest by late 2024. The American engineering technology group Transdigm Group invested $8.5 million in a joint venture to establish a manufacturing facility in Sri Lanka, thereby relocating its SHIELD operations from China. This investment is a notable example. This action was perceived as a testament to the increasing interest of the United States in investing in Sri Lanka, particularly in light of the government's initiatives to enhance the investment climate and guarantee transparency. The US Ambassador to Sri Lanka emphasised the potential for additional manufacturers to contemplate similar actions if the investment climate continues to improve.

Infrastructure Development

The West Container Terminal at the Port of Colombo, which is being developed with the support of the U.S. International Development Finance Corporation (DFC), is a significant milestone in Sri Lanka's infrastructure investment. This initiative is intended to establish the port as a regional connectivity hub, with a $553 million investment. This initiative not only reinforces Sri Lanka's strategic position in global trade but also significantly stimulates the local economy by improving the port’s capacity and efficiency.

It is anticipated that this investment will generate employment opportunities in a variety of sectors, including logistics and construction, and will also stimulate economic activity. Furthermore, it enhances Sri Lanka's capacity to manage an increase in maritime traffic, thereby guaranteeing its continued competitiveness in the increasingly critical Indian Ocean shipping lanes.

Climate Change and Environmental Collaboration

Sri Lanka has established an ambitious objective of generating 70% of its electricity from renewable energy sources by 2030. The United States has provided technical expertise and funding for renewable energy projects, such as solar and wind energy initiatives, in order to support this objective. Sri Lanka is committed to achieving carbon neutrality by 2050. The United States has collaborated with Sri Lanka to establish strategies and frameworks for the reduction of greenhouse gas emissions in various sectors, including energy, transport, and agriculture.

The Global Climate Promise Exchange Workshop was held in Sri Lanka in March 2024, with the assistance of the United Nations Development Programme (UNDP) and Japan. The event convened 16 countries to exchange best practices and lessons learnt in the implementation of climate commitments under the Paris Agreement. Sri Lanka initiated an initiative in August 2024 to create its inaugural Biennial Transparency Report in accordance with the Paris Agreement. The initiative, which is backed by the Global Environment Facility and UNDP, is designed to improve transparency and accountability in climate action by monitoring the progress of national climate commitments. USAID sponsored the ‘Climate Challenge SL’ hackathon in late 2024, which aimed to encourage data professionals to create innovative, data-driven solutions for climate-related issues in agriculture and fisheries.

The objective of the event was to promote collaboration and employ technologies such as AI and IoT to address climate resilience challenges. A climate adaptation initiative that prioritised agriculture, fisheries, and tourism was implemented in September 2024 through a partnership between USAID and SDB Bank. The objective of this initiative is to strengthen governance and promote market-based growth in order to increase the ability of the private sector, civil society, and government to address climate change.

The project involves the creation of financial products that are specifically designed to meet the requirements of climate adaptation and the development of resilience in vulnerable communities. Ceylon Cold Stores PLC entered into a partnership with USAID's Ocean Plastics Reduction Activity in October 2023 to establish Sri Lanka's inaugural women-led plastic recycling network. To foster economic resilience and environmental stewardship, the initiative empowers women from coastal communities to acquire and process recyclable materials. The programme had collected more than 1,175 kilos of plastic waste by 2023.

Promoting Human Rights and Reconciliation

The United States has implemented proactive measures to advocate for Sri Lanka’s reconciliation and human rights protection. This engagement has been instrumental in assisting the nation in its recovery from the repercussions of a decades-long civil conflict and in confronting the underlying issues that are necessary to establish a more inclusive and peaceful society.

The United States has consistently underscored the significance of accountability for historical human rights violations, urging Sri Lanka to investigate and address alleged abuses that occurred during and after its civil conflict. The United States has promoted independent investigations to ensure justice for victims and their families through bilateral discussions and international forums such as the United Nations Human Rights Council (UNHRC).

The United States has provided support for constitutional reform efforts in Sri Lanka, acknowledging the significance of political reforms in promoting inclusivity. These reforms are intended to address concerns such as the devolution of power, minority rights, and the establishment of mechanisms that account for the aspirations of all communities in the country.

The United States has collaborated with Sri Lankan institutions, such as the judiciary and law enforcement, to improve their ability to address human rights concerns through programs and seminars. This encompasses instruction on the preservation of international human rights standards, investigative techniques, and legal procedures.

The United States has maintained robust relationships with Sri Lanka's civil society organisations, offering them resources and platforms to elevate the voices of marginalised groups and promote reform. This encompasses assistance for community-based initiatives that emphasise education, social cohesion, and reconciliation.

The United States has actively promoted inter-religious and inter-ethnic dialogue in Sri Lanka. The U.S. has promoted grassroots initiatives that promote understanding and cooperation among diverse communities, thereby reducing tensions and establishing trust.

The United States’ dedication to assisting Sri Lanka in its pursuit of a more equitable and harmonious future is underscored by these endeavours. The partnership endeavours to guarantee that peace, justice, and inclusivity are ingrained in the social and political fabric of Sri Lanka by confronting the underlying causes of conflict and advocating for systemic change.

Strengthening People-to-People Exchanges

The two nations have been able to cultivate mutual understanding and benevolence through cultural and educational exchanges. The United States has implemented initiatives that fortify relationships, empower youth, and advance shared principles of democracy, diversity, and innovation.

The United States has been instrumental in fostering Sri Lanka's growth and stability from 2022 to 2024, through economic investments, environmental initiatives, and human rights advocacy. The United States has assisted Sri Lanka in overcoming obstacles and establishing the groundwork for regional cooperation and sustainable development by emphasising multifaceted partnerships. The power of cooperation in addressing urgent global and national issues is demonstrated by the partnership’s ongoing evolution.

BOOK REVIEW - SRI LANKA AIR FORCE HIGHLIGHTS HISTORY AND HONOURS HEROES IN LATEST PUBLICATION

ROYAL WINGS OVER CEYLON: An Engraved Era submerged with time

History is dotted with moments, that developed into incidents, which collectively impacted and altered the trajectory of time from then onwards. The changes wrought on the actors involved transformed their journey, and generations thereafter live according to the results of that which occurred long before they were around. These moments and incidents are now long gone, having been committed to history, but must never be forgotten, owing to the enormity of challenges, the fortitude with which they were faced, and the power with which they were overcome.

The latest publication of the Sri Lanka Air Force, ‘Royal Wings over Ceylon: An engraved era submerged with time’ is a timely reflection of a critical moment in Sri Lanka’s history, when the island was under British rule, and got drawn into the Second World War. While the theatre of conflict was away from the island, the book revolves around the Japanese attacks at the height of the war, which brought the conflict to our shores. It emphasizes the effective manner in which the attacks were thwarted, and how efforts were taken to ensure that the tide was not turned in the war effort of the Allied powers against the Axis powers. Failure on that occasion could have changed the course of history drastically. British war-time Prime Minister, Sir Winston Churchill, claimed that the 1942 bombing of Ceylon was “the most dangerous moment of the war”, and the severity of those moments is duly reflected in this latest book. Historians have written extensively about the rigours of war, especially the Second World War, yet the position of Ceylon in this intricate narrative is often lost internationally, and is absent domestically, where knowledge of such an occurrence is miniscule.

The book takes the reader on a fascinating journey back in time, through the well-crafted chapters, which examine aspects of 1942, from the global scenario that prevailed, and the Japanese expansion of Empire that was occurring, to the travails of Squadron Leader Leonard Joseph Birchall, a Canadian pilot who emerged a hero, though remained a prisoner of war for many years. The heroism of such officers, who saw colleagues perish around them, yet remained steadfast in their duty, and safeguarded the island nation, are personalities worth researching and knowing. They were a long way from home, yet duty called, and the result was the safeguarding of our home country.

Similarly, the chapter on the entire attacks in Colombo and Trincomalee, encapsulates details of all that unfolded, and the inclusion of pictorial representations, especially the comparison of the affected areas then and now, enhance the reflective tribute of this book. Also highlighted, and of special interest is how many well-known areas of Colombo, specifically the Colombo Racecourse grounds served as an airstrip with maps providing residents of Colombo an understanding of what the city they dwell in endured. The chapter on ‘The Eastern Fortress’, which discusses Trincomalee and the magnificence of the natural harbour that exists there, causes the reader to grapple with the enormity of potential, that was realised at that time, by a colonial power, and had been to the advantage of other powers too, given the battles that had been fought in the seas off the coast.

The reader is given a synopsis of RAF bases that existed in Ceylon. For civilians, researchers and air enthusiasts, this information is an opportunity to understand the outlay, the incidents, the capacity and the achievements of a bygone era. The meticulous attention to detail makes for very interesting reading, and piques curiosity in the researcher to delve further into a time and space that existed on our island, but has passed into the annals of history. The chapter, appropriately titled, ‘Courageous Ceylonese Seeds in the RAF’, focuses on the people of this country, who joined the Royal Air Force, gained training at the Cranwell Flying School in the United Kingdom, and would later defend the skies over the island, and significantly came from all communities that inhabit the island. The reference to Aimee Jonklaas, who was the only Ceylonese female pilot in WWII is especially poignant.

Interwoven through the book, is the story of the island of Sri Lanka, from the vantage point of a specific moment in history. Undertaking a project of this nature requires much effort, dedication and true passion to see it through to fruition, and this has been accomplished overwhelmingly. The editorial team has provided the reader with food for thought in the arena of air power, and ensured that the book and its rich contents could spawn several more research projects, to dig deeper and uncover treasures of the past, which should be safeguarded for posterity. This timely publication is a must-read for all those interested in the history of Sri Lanka, world affairs, the colonial period, strategy, warfare and air power.  

The book is a worthy contribution to the existing literature pertaining to the RAF, yet its reflective nature weaves our island into that century-old tapestry, which has been guided by the spirit of ‘Per Ardua ad Astra’ (through adversity to the stars).

Kudos to the team, and their desire to revive, revisit and record history!

-          George I. H. Cooke