Third Belt and Road Forum and Sri Lanka’s participation

The third Belt and Road Forum concluded last week in China, marking the 10th anniversary of the initiative. Inspired by the ancient trade routes, the Belt Road Initiative (BRI) is a massive investment drive by Beijing to develop supply chains through road, rail, and ports as well as supporting infrastructure and operating systems on a global basis. 

At the summit, President Xi Jinping pledged to accelerate connectivity between China and Europe over the next 10 years, integrating ports, shipping and trading services while also spelling out intentions to create pilot zones for e-commerce cooperation.

Sceptics, particularly the Western nations, have described the scheme as a mechanism for Beijing to expand its geopolitical influence by measures such as burdening poorer countries with unsustainable debts. Nevertheless, the BRI has a strong appeal among developing countries in the Global South despite controversy as well as suspicions. The influential conference took place in the backdrop of strained relations between the US and China. The US is pursuing a strategy of decoupling whereby it seeks to limit its reliance on China in order to protect its industrial base and lessen its import reliance in critical sectors. 

Washington has outlined plans to boost production locally to reduce its dependence on fragile global supply chains, especially those originating in China with a special focus on vital industries like semiconductors and rare earth minerals. Commenting on the West’s efforts to split from China’s supply chains, the Chinese leader expressed his dissatisfaction at the forum about perceiving others’ development and economic interdependence as risks.

Sri Lanka’s powerful neighbour – India views the mega infrastructure scheme of its East Asian rival with a lot of suspicion. New Delhi has raised concerns about the China Pakistan Economic Corridor (CPEC) project – a flagship initiative of the BRI – because it passes through Pakistan-administered Kashmir, which is seen by New Delhi as part of its territory illegally occupied by Islamabad. The Indian media also provided a lot of coverage to Sri Lanka’s participation at the event in order to illustrate the growing Chinese influence in the South Asian region – a development which India detests.

Notwithstanding the cynicism of both the West and India towards the BRI, President Ranil Wickremesinghe’s participation at the forum enabled Sri Lanka to advance its political and economic interests in the wake of enormous influence China has over Sri Lanka by virtue of being the island’s largest bilateral creditor. A $ 1.5 billion deal was secured on the sidelines of the summit to advance the phase-2 development of Colombo Port City. The President also had an interaction with leading representatives from several major Chinese corporations like China Communications Construction Corporation, Sinopec and BYD during his visit. 

Importantly, Chinese Finance Minister Liu Kun reiterated Beijing’s commitment to extend comprehensive support to implement a medium and long-term program to optimise Sri Lanka’s debt, which would be quite essential towards achieving economic recovery. The agreement signed by the Chinese multinational Huawei with President Wickremesinghe to digitise Sri Lankan schools will be a huge boost to the Government’s stated objective of building a competitive, digital, and green economy to face the challenges of the future.

This was President Wickremesinghe’s first official visit to China since becoming President. Given Sri Lanka’s strategic location and fragile economic circumstances, it cannot afford to lose the goodwill of any of the powerful countries in the world. In view of the extremely challenging situation the country is experiencing and the predicament of having to encounter various trials stemming from regional rivalries and conflicts between global superpowers periodically, the Government has to walk on a tightrope in terms of handling foreign relations. More than ever, such a meticulous balancing act in terms of diplomacy requires an experienced and matured leader who is well versed in internationalism. When all is said and done, only the incumbent possesses those attributes.