By Rathindra Kuruwita

India’s involvement with China in BRICS is a boon for Sri Lanka, as it helps the country address concerns from Western nations about its potential inclusion in the organisation, Ramindu Perera, senior lecturer at the Open University Law Faculty and a member of the Federation of University Teachers Association (FUTA), told The Island yesterday (24).

Perera pointed out that while India had border disputes with China, it still collaborated with the Chinese on economic matters.

“India is now a key ally of the United States, which approaches South Asia through India. However, India remains a BRICS member and maintains close economic ties with China and Russia. India recognises the economic shift taking place in the East and seeks to capitalise on it. This position is advantageous to Sri Lanka,” he stated.

Perera also said that Sri Lanka has formally begun the application process to join BRICS and the New Development Bank this week. President Anura Kumara Dissanayake has written to his Russian counterpart, Vladimir Putin, expressing Sri Lanka’s interest in BRICS membership, while Foreign Minister Vijitha Herath has sought the support of his BRICS counterparts.

“This decision to join BRICS was not made by the National People’s Power (NPP) government alone. The previous Cabinet had approved the decision, and the NPP is merely continuing that policy,” Perera explained.

He emphasised that Sri Lanka has submitted its BRICS application with India’s official endorsement, ensuring all necessary diplomatic bases have been covered. “This signals to the West that, while we are joining BRICS, we have no intention of fostering conflict. In fact, we can position this as a continuation of our long-standing non-alignment policy, demonstrating that we are not interested in aligning with competing geopolitical blocs but instead seek to work with all for the country’s benefit,” he added.

Perera noted that when BRICS was established in 2009 with Brazil, Russia, India, China, and South Africa, many were sceptical about its chances of success due to internal conflicts between some member nations. However, as BRICS demonstrated its effectiveness, numerous nations from the Global South have expressed interest in joining the group.

“Countries like Iran, Egypt, Ethiopia, and the United Arab Emirates have recently joined BRICS. Over 30 others, including Sri Lanka, Indonesia, and Argentina, have shown their desire to join the organisation,” Perera said.

The New Development Bank, formerly known as the BRICS Development Bank, while not yet as established as the World Bank, has already funded several projects. One criticism of the World Bank, he mentioned, is its voting system, which allocates votes based on a member’s share of the Bank’s capital stock. “Since the US and EU countries have contributed the most to the World Bank’s capital stock, they hold more voting power. The World Bank has been accused of operating according to the interests of these nations. In contrast, the New Development Bank’s constitution grants each member country only one vote. Furthermore, the World Bank’s loans often come with conditions that have been criticised by developmental economists,” he noted.

Perera expressed confidence that Sri Lanka is likely to secure BRICS membership.

He further stressed the urgency of economic growth as Sri Lanka faces the need to begin repaying its foreign debt by 2028. To achieve this, the country requires capital to develop strategic sectors, which is essential for sustainable debt repayment. “The agreement we reach with BRICS could assist in securing some of that capital. We must remember that BRICS is composed of rapidly developing economies, and being part of it could also help us attract investments,” he said.

The IMF has mandated that Sri Lanka’s government income must reach 15 percent of GDP by 2028. Without economic expansion, the state will struggle to increase its tax revenue, Perera concluded. “We must not think of BRICS as a jaunt against World Bank, the IMF or our agreements with foreign debt holders. Working with BRICS should be seen as complementing our overall economic strategy,” Perera said.