Upgrade Foreign Service for commercial diplomacy

By Uditha Jayasinghe 

Tackling commercial diplomacy head on, Foreign Minister Ravi Karunanayake yesterday called for sweeping changes in Sri Lanka’s Foreign Service and recruitment from the private sector to make it a trade-focused force.   

“The shift in power from west to east is a positive one for Sri Lanka. This is indicated by major powers expressing interest in investing in Sri Lanka. India has indicated an interest in investing $ 2 billion in the East Container Terminal and port along with other projects such as the oil tank farm in Trincomalee under a public-private partnership with the Sri Lankan Government. China has invested $ 1.5 billion in the Port City and Japan is also interested in investing in an LNG terminal jointly with India and is seeking more opportunities here,” he said while speaking at a foreign policy forum organised by the Lakshman Kadirgamar Institute.   

However, the Minister admitted Sri Lanka has been largely reactive with neighbours and potential partners. As such Sri Lanka cannot afford to remain complacent, believing it will automatically reap economic rewards of a global shift. It is worth noting that even though China is investing in Sri Lanka, foreign investment, when compared to other economies such as Vietnam, Cambodia, Malaysia and Laos, is much higher than Sri Lanka. 

“Sri Lanka must focus on commercial diplomacy to maximise investment from growing economic powers in the region. There are several strategies of commercial diplomacy that we must pursue. First we should pursue a hub diplomacy, which will promote Sri Lanka as the first choice of international companies, from established multinationals to expanding start-ups; just as Singapore has established itself as a successful hub between India and China so should Sri Lanka,” he added.  

Secondly, while thinking global, Sri Lanka’s Foreign Service must also act local, he advocated. Karunanayake echoed Prime Minister Ranil Wickremesinghe’s need for Sri Lanka to build greater investment and trade ties with nearby Indian cities and states such as Karnataka, Kerala, Telegana, Tamil Nadu and Andra Pradesh that have a combined population of 250 million. 

He also noted it was imperative for Sri Lanka to pursue trade agreements with India, China and Singapore. If Sri Lanka’s local resources are overstretched it should seek the external expertise and training on negotiations. He also advocated that Sri Lanka should push for greater trade liberalisation among multinational organisations it is part of. 

“Just as India has done with its own diaspora we must reach out to overseas Sri Lankans. They have networks and knowhow that we currently do not even appreciate let alone leverage. Sri Lanka must cultivate a dual identity as both the centre of the Indian Ocean and the gateway to the subcontinent. Several other countries, including Hong Kong and Singapore, have successfully cultivated such dual identities and even New Zealand with Australia.”

Achieving a successful identity is not merely a growth task, noted the Minister. Sri Lanka’s commercial diplomacy must be founded on clear and stable principles as well as policy consistency and to safeguard Sri Lanka’s security from emerging regional players.