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Jaishankar means Victory of Lord Shiva! – Part II

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By Austin Fernando
(Former High Commissioner of Sri Lanka in India)
(Continuied from yesterday)
Development and relationships

Foreign Minister Dinesh Gunawardena and his Indian counterpart Dr. S. Jaishankar considered developing mutual relationships concerning existing projects, e. g. the East Container Terminal (ECT) and the Trincomalee Petroleum Tanks.

The Indians have observed increasing involvement of the Chinese in the Colombo and Hambantota ports; in Colombo through the Colombo International Container Terminals Ltd – (CICT), a joint venture between China Merchants Port Holdings Company Ltd., and the Sri Lanka Ports Authority (SLPA). The main stakeholders of South Asia Gateway Terminal – (SAGT) are A.P. Moller Group and John Keells Holdings PLC. The CICT Transshipment business has been there since 2013 with the Chinese owning 85% of its shares; the SAGT has been operational with 10 partners since 1999, with 85% ownership. Therefore, it is only natural that the Indians seek the same terms as China and the private sector.

 

Transshipment and ‘Sale’ of ECT

India accounts for 66% of Colombo’s transshipment; it is projected to become the world’s fifth-biggest economy. Hence, Sri Lanka’s transshipment business may heavily depend on India. The argument being peddled in some quarters that a possible Indian policy decision to avoid Colombo could deal a crippling blow to Sri Lanka’s transshipment business has been rejected by the protesting trade unions, which insist that vital decisions in this regard are taken by shipping companies, and not governments. I believe the unions are right to a considerable extent on this score.

The transshipment business involves a complex integrated network of industrialists, shippers, ports, and a market that demands fast, timely, secured goods transfer at competitive prices, and, most of all, sustainability. For these reasons, reputed foreign shipping companies engaging with the SLPA, is welcome. As it happens elsewhere, it could be a joint venture (JV). The ‘sale’ of any physical assets is out of the question because the term ‘sale’ triggers protests.

Perhaps, the fact that Adani is an Indian venture might have ignited protests. The Indians may be questioning why such protests were absent when the CICT (with 85% shares against the proposed 51% for Adani) and the SAGT similarly partnered with the SLPA. Of course, the term ‘sale’ was not used then. Secondly, the Indians may be wondering why there was no hostile reaction to questionable actions benefitting the Chinese, e.g., the alienation of extremely valuable land for the Chinese, and permission for Chinese submarines to be berthed at the CICT, allegedly at a risk to the country’s sovereignty. Thirdly, due to other geopolitical contradictions, India may be suspecting that anti-Indian competitive business interests find expression through protesters, despite claims to the contrary. Fourthly, the Indians are concerned about not an only port-related business but also politics, defence, security, and self-respect.

Sri Lanka must strive to strengthen economic ties with India, whose economy is expanding fast. Therefore, transshipment networking should be re-evaluated in that context. Transshipment competitors such as Singapore, Malaysia, Dubai, Oman, Abu Dhabi, etc. have gone into overdrive in developing their ports. If Sri Lanka does not do likewise to remain competitive by developing its ports, it will lose.

As for the importance of upgrading ports, one can look at Abu Dhabi’s Khalifa Port. It handled around 2.5 million 20-foot equivalent units (TEUs) of cargo in 2018 and expects to increase the volume to 8 million-plus TEUs by 2023, by the addition of more ship-to-shore cranes and deeper berths. The investment of $ 1.1 billion comes from the Mediterranean Shipping Company (MSC). Another example is the Port of Salalah benefitting from over USD 800 million in investment expecting to handle over 5 million TEUs. Therefore, the Sri Lankan government must look for lessons on suitable partner/s.

Terminal operations are complex even in India. Although most Indian ports are state-owned, individual terminals are operated by large private companies such as DP World, AP Moller Terminals, and PSA International. Sri Lankans are demanding that ports be managed by the state when competitors are opening doors to foreign and local private partners. Given the generally poor performance of our state-owned ventures, the demand for state involvement in operating in a highly competitive environment must be gladdening the hearts of private competitors elsewhere and even here.

To understand the advantages of integrated terminal management I quote Rohan Masakorala. Having explained how shipping partners negotiate and undertake sharing assets, he has said:

“Therefore, it is proven beyond doubt that irrespective of the country’s wealth and the size of the shipping line, they do partner with competing lines for logical reasons as networks, provide better business models and solutions than working in isolation.” 

We are not a large goods producer or shipowner. We must depend on ‘partnering with competing lines for logical reasons,’ utilizing favorable logistics networks, providing “better business models and solutions than working in isolation.” Thus, the challenge before Dr. Jaishankar may be to find a mutually agreeable business model. Probably, the managerial structures may be of some help, but They should have been transparently negotiated with all stakeholders.

 

Protesting India or JV concept?

Are the ongoing protests against India, or the proposed ECT deal? Or are they due to domestic political frustration or an attempt by the mainstream/social media to embarrass the government? Or are they to finally withdraw and show the hierarchy was reasonable? Is it to force withdrawal and antagonize India to make China to be the saviour from other economic problems? So many complications! Whatever, the protests are huge even to change stances.

Some of those who protested then are now ministers who have realized the need to address realities of development, geopolitics, diplomacy, neighbourly relations, other anticipated economic and political favours, etc; they support President Gotabaya Rajapaksa on the ECT issue. Similarly, some of those who were in the Yahapalana administration supporting the ECT deal is now in the Opposition, protesting the Indian involvement. They have forgotten that their government initiated this project with the Indians. The protesters need to take cognizance of the un-explained truth of mutuality as mentioned by Dr. Jaishankar.

 

Facing issues for solving

For decisions, clarity is needed on issues. There are six major issues”.

The first is the conceptual agreement of developing the terminals with foreign involvement. The Chandrika Kumaratunga and Mahinda Rajapaksa governments by establishing the SAGT and the CICT respectively accepted it. The incumbent President has realized this, but the circumstances have changed.

Chronologically, the Yahapalana government had only a terminal in mind when the MOU-2017 was signed. In 2018, President Sirisena insisted that the ECT be developed by the SLPA as currently demanded by Unions. He was for foreign participation in developing the West Container Terminal (WCT). In 2019, a Memorandum of Cooperation (MOC) was signed after President Sirisena’s discussions with PMs Modi and Abe for ECT development by an Indian and Japanese operational JV. About a fortnight back President Gotabaya Rajapaksa preferred developing WCT by the SLPA and ECT by Indians. The latest is the Unions accepting external investment in WCT, and the government developing the ECT. (The Island February 1st, 2021). Note the sea changes the wavering state policy on this issue has undergone during the last years and even within a fortnight.

The WCT was on offer in 2018 and the Indians refused. Will they change their stance now? It is too early for the Indians to respond to the latter. If they have stronger bargaining chips, they will remain tight-lipped with a view to winning finally. Anyhow, in inter-state business, if such a change happens, parties discuss and agree before making public statements. In a way, Sri Lanka, which withdrawn from the UNHRC resolution as publicised, withdrawal from a MOC will be no issue. It will depend on the chip in Indian hands.

Still do do not be surprised if the Indians strictly demand implementing the MoC.

The second is the operational mechanism. The CICT is operated by a Chinese company. At the SAGT, the mechanism involves international and local private operators. Therefore, according to the precedent, the agreed mechanism is foreign private operators with the SLPA. But now, is it Adani Group or a different company or other like above Abu Dhabi ports? Or is it an SLPA-Private Sector Project? Could it be Adani’s allied domestic private sector? Many equations are possible.

The third is the selection process. Adani Group is the nominee of India. How Gautham Adani’s company was selected is unknown. If the CITC or the SAGT partners were selected by established procurement procedures, the precedent must be followed. One may recall that Minister Arjuna Ranatunga informed the Cabinet before 2017- MSC that the ‘new operator should be selected following the established Procurement Guidelines.’ Recently, Minister Namal Rajapaksa has also spoken of procedures. These must be discussed across the table because there could be exceptions to procedures.

The fourth is the ownership of the ECT project. The Presidential Media Unit (PMU) Statement and PM Rajapaksa’s statement in Parliament said: “No selling, no leasing of ECT’. But the PMU statement signified an “investment project that has 51% ownership by the government” and the remainder by Adani and other stakeholders. The term ‘51% ownership’ unfortunately but logically makes Adani and others the ‘owner of 49%.”

However, in the aforesaid MOC these percentages are for a “Terminal Operations Company,” meant for the “explicit purpose of providing the equipment and systems necessary for the development of the ECT and managing the ECT.” This difference between ‘ownership’ and the operational company’s objectives clear doubts, but this fact has not been highlighted, fertilizing suspicions.

Ownership is the legal relationship between a person and an object. Therefore, the protestors harp against giving ‘part-ownership’ to Adani, because SLPA owns the whole ECT now. The protestors understand “ownership” as an outcome of a ‘selling’ process. As damage controlling, the President repeated about a JV, with SLPA participation with Adani’s, and others as stakeholders. It is the reality matching the MOC. But the explanation came one week after the PMU statement. By then protestors have socially marketed ‘selling ECT.’

The fifth issue is the influencers/motivators. How views against the President’s wishes are being expressed smack of a move to keep the Indians away. Clearing such doubts is difficult when efforts are organized concertedly.

Sixthly, the happenings unrelated to the ECT could muddy the waters. The destruction of the Jaffna University memorial, Indian fishermen’s deaths, and the Cabinet decision to establish Hybrid Renewable Energy Systems in Nainathivu, Delft, and Analathivu islands through a Chinese contractor (upon international competitive bidding) are three such issues. The last is an extremely security-sensitive issue for India although it was presumably not a favor done to the Chinese by Sri Lanka. The Indians have previously vehemently protested the berthing of Chinese submarines in Colombo and the Chinese housing projects in the North. The Indian protests will be diplomatic and subtle. Nevertheless, their repercussions could override the ECT issues and may influence other bilateral and multilateral matters.

Way forward amidst contradictions

The need is to develop the ECT. Sri Lankan governments are known for policy changes and contradictions; Indians are different. Just see the aforesaid policy contradictions. Even the ECT protesters have double standards. When the CICT with ‘85% foreign ownership’ was established, there were no grudges. When the government announced its decision to form a JV with Adani and others, having 49% shares, therein to run the ECT all hell broke loose!

It is necessary to stop bickering if it is development that we seek. The country must prioritize the economy, neighborhood relations, private sector involvement, foreign investment promotion, diplomacy, security, financing, other personal and political issues.

Although decisions on the Sri Lankan ports must be economic, in this complex world, they are invariably influenced by other factors. I hope the government will strike a balance and select the best option. Sri Lankan must not enslave itself to other countries. It must negotiate for the best profitable and sustainable solutions, be it with China, India, or the US or with large shipping companies undertaking port development. The government must maintain transparency in negotiating the terms of port development. A move to sell a state asset or any move that can be construed as such is sure to lead to negative responses. Concurrently, let the protesters engage with the government and work toward developing the Colombo Port.

As it is, DR Jaishankar’s victory has not yet come about completely. There are roadblocks on his path. The Indian silence is deceptive. However, the Indian responses may not be restricted to shipping. When responses deceptively happen, the consequences could be hurting. Dr. Jaishankar knows Kautilyan deception and would have learned from Sun Tzu when he was the Indian Ambassador in China. Hence the need for Sri Lanka to tread cautiously.

 

Reciprocation of relationships

Nevertheless, the professional diplomat that he is, Minister Jaishankar highlighted the grand mutual relationship with Sri Lanka, the “trust, interest, respect, and sensitivity.” Perhaps, Indian critics could question this mutuality having seen the protests.

During the Yahapalana regime, mutuality on the part of India was diminishing, although India does not publicly admit it. This for example was reflected in the budgetary allocations for the neighborhood in Minister Nirmala Sitharaman’s budget, where only INR 250 crore was provided for Sri Lanka out of INR 8,415 crore total, while countries like Bhutan, Nepal, Mauritius, the Maldives received much more. The reason may be the security considerations of India. India further expanded a package for the Maldives (August 13th, 2020), that included a $100 million grant and a $400 million new line of credit, for the Greater Malé Connectivity Project, expressing extra neighborly attachment.

Concurrently, requests for a $ 1 billion financial lifeline swap and nearly $ 1 billion debt moratorium made by President and PM Rajapaksas from PM Modi are delayed for months, irrespectively of the much-flaunted mutuality. Sri Lanka should read these signs carefully and understand the message.

Minister Gunawardena (understandably) did not mention competition that may arise from the seaport Projects at Vizhinjam in Kerala, and Nicobar, owned by Indians. Both did not bother about PM Modi’s declaration: “There is a proposal to build a transshipment port at Great Nicobar at a cost of about Rs. 10,000 crores. Large ships can dock once this port is ready” (The Times of India -Business- of August 10th, 2020). Mark the words, “transshipment port!” These ports will invariably compete with Colombo’s ETC in the future, and India may through Nicobar aim to become the transshipment hub, being in proximity to the busy east-west shipping routes. This points to the need for developing the ECT fast and making it competitive.

For sustainability and safety in this competitive business, it will be necessary to be cautious if joint ventures are to be formed, especially by reaching an agreement on time frames, exit clauses, investment programming, senior managerial positioning, arbitration in Sri Lanka, etc. For these the active participation of the SLPA, which has expertise is mandatory. Unfortunately, nothing is heard about such moves. One hears only the voice of the protesting Unions.

 

Security aspects of relationships

Dr. Jaishankar mentioned maritime security and safety but did not make specific mention of Quad or Indo-Pacific interventions or China. What we must understand about the Indian attitude towards security is that India expects us to be India-centric as could be seen from the following statement by Shri Avatar Singh Bhasin on Indian security relationships:

“There could be no running away from the fact that small states in the region fell in India’s security perimeter and therefore must not follow policies that would impinge on her security concerns in the area. They should not seek to invite outside power(s). If any one of them needed any assistance it should look to India. India’s attitude and relationship with her immediate neighbors depended on their appreciation of India’s regional security concerns; they would serve as buffer states in the event of an extra-regional threat and not proxies of the outside powers…”

The proxy need not be only China; even if it is the US, India will be perturbed, if lines are crossed. Therefore, Minister Jaishankar’s security concerns must be viewed concerning the aforesaid criteria. Dr. Jaishankar subscribes to these. About his visit, the Indian Television had this to say: “An important focus of his visit will be the Chinese presence in the Hambantota harbor on a 99-year lease. It is an understanding between China and Sri Lanka that they will not undertake any military venture there. So, India will take the help of Sri Lanka to ensure that Chinese military or Chinese hegemony don’t come to this region.” This is the Indian attitude.

India’s position always remains the same: “Do not be a proxy of the Chinese, be a buffer state! Do not allow the Indian Ocean to be the Chinese Ocean!” However, considering the proximity, long relations, the possibility for political displacements, regional economics, etc. Sri Lanka will think of the advantage of being with the Indians, of course, without being a buffer. To what extent other motivations—financial, economic development, diplomatic, security, etc.—would work is also important especially when Sri Lanka is haunted by international interventions like the one at the UNHRC. It is not easy to gain the required balance.

 

Conclusion

Indo-Lanka relations were highlighted by both Ministers. The impending global situations after COVID 19 and the complexities arising due to geopolitics and developments will compel Sri Lanka to work with the world powers. In that respect, even if the past is forgotten the present and future will make it imperative that we maintain friendly relations with everyone, especially with India and China, latter expected to be the future number one economy. This is the reason why Sri Lanka should pay attention to the purpose of Dr. Jaishankar’s recent visit and maintain balance.

Overall, the Indian Foreign Minister visited Sri Lankan not to lose, but to prove that he was ‘Jai Shankar.’ Whether he departed on January 7th, 2021 with expected goodies, officially satisfied to celebrate his 66th birthday the following day, are secrets and will be known in days to come.

Finally, it will be mutually beneficial for both Sri Lanka and India to make compromises and strengthen their relations instead of being obdurate.



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A visa for bringing in expertise and expanding tourism

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In this article, I introduce an idea which is simple to implement but is powerful and helps with building technical skills, strengthening the country brand and creating international opportunities for Sri Lankans. Furthermore, it can diversify and extend the country’s tourism revenue streams.

The simple idea is to introduce a hassle-free visa for Internships, Volunteering, Expert Exchange Programs and Short-term Studies. For brevity, let me call it a Knowledge Transfer Visa or KTV. There are three important clarifications to make up-front. Firstly, this visa is not for those seeking paid employment in Sri Lanka. Secondly, the local partner needs to ensure that if any local permits or permissions are applicable, these are in place and cover any KTV holders. Thirdly, it is not a resident’s visa and tourist rates will have to be paid by KTV holders for their sightseeing.

It is also important to spell out up-front a critical requirement for success. This is that an applicant from a country who is entitled to obtain an online tourist visa quickly and easily should be able to obtain a KTV with the same ease and convenience. It would be reasonable for the Department of Immigration to have an additional information box in the visa application to ask for the name and contact details of the local partner (corporate or individual). But it should not be the role of the visa issuing officer in a Sri Lankan foreign mission or the Department of Immigration to examine paperwork to assess the credentials of the visitor and the local partner. This should be left to the applicant and local partner to assess each other. By analogy, a tourist is not asked to demonstrate that the hotel they have booked into is validly registered as a tourism business. Nor does the visa issuing process ask the hotel if they have vetted the tourist’s ability to pay. If the KTV is kept as simple as an online tourist visa, it will succeed, otherwise it will fail to deliver the potential benefits.

A reader may ask why this sort of visa is needed. The answer is that Sri Lanka is well positioned to benefit from activities covered in a knowledge transfer visa. However, such visits will only materialise if foreign nationals are reassured that they can arrive for such purposes with a visa where the purpose of their visit is explicitly recognised and they are confident that their visit is welcomed. Visitors on a KTV will bring in hard currency revenues in much the same way as ordinary tourists but importantly lead to other benefits such as the import of expertise, building international networks for local corporates and individuals and being potential repeat visitors. Let me explain by running through the various strands.

Internships

With the first strand, Internships, there is an overt intention that people want to work in a very structured manner and obtain useful work experience to help obtain paid employment back in their home country. Sri Lanka for various reasons, wishes to have tight controls over foreign workers and to limit foreign nationals on work visas. It is important to point out that facilitating internships need not conflict with this thinking. Incoming foreign interns are different to full-time foreign workers and caters to a younger demographic looking for a short period of work experience. If Sri Lanka restricts foreign internships to unpaid internships, this will limit the candidate pool to those interns who have parental financial support. Nevertheless, this is still a start and better than not opening the door at all.

In many sectors, Sri Lanka can offer meaningful summer internships of up to 3 months or longer. Two obvious examples are Tourism and Information Technology (IT). Sri Lankan companies cannot run viable business models by relying on a supply of foreign interns. Therefore, foreign interns do not in any way threaten the prospects for locals for employment. On the contrary, foreign interns from developed economies can benefit locals working with them in various ways. These could include improving language skills, and locals gaining exposure to skills such as time-management and project planning. Internships can also be used for foreign students to engage in undergraduate and postgraduate university projects with local academics.

To explain how foreign interns can be very useful, let me construct an example. It is a fact that Sri Lankan companies are writing the software for some of the most technologically advanced companies in the world. Imagine Sri Lankan IT companies actively pitch this to foreign universities in advanced economies and foreign undergraduates take up internships in Sri Lanka. Not only do they gain work experience of an equivalent standard to working in London or New York, but they will have a more exciting time in a tropical country. When they graduate, they will take up jobs in London, New York or wherever. When their employers are looking to outsource work, they may recommend the companies they worked with in Sri Lanka. Some of these foreign interns may even start their own companies in the future and look to outsource work to the Sri Lankan companies they worked with. If the new start-ups do well, there may be frequent business visits. When their former interns start families, they will visit Sri Lanka on visits which combine business meetings with a family holiday. Their children in turn will grow up with Sri Lanka being a place that was a regular holiday destination and, in the future, bring their own children on holiday. Internships in Sri Lanka to foreign students can grow future business revenues and also create a multi-generation chain of tourists.

Some foreign interns can also work in a three-way collaboration between their university, a local university and a private sector company. Take for example, a hotel that has placed camera traps on its property to study wildlife. If they do it on their own, it may simply be for marketing the hotel. If they can partner with a local academic or conservation NGO, it could be elevated into a formal study, perhaps even a long-term study. For both the local academic and the hotel, it would be useful if any work they do is part of a long-term study with a foreign university. International collaborations like this are also more useful to the hotel in their efforts for international publicity. For the local academic or conservation NGO, the international collaboration could also open opportunities for funding and recognition and invitations to present in international conferences. A win for all.

If Sri Lanka companies open up to foreign interns, it may result in them realising the value of well-structured internship programs and the dialogue with overseas interns and their academic supervisors may lead to good internship programs being set up for both local and foreign applicants. This can only help young resident Sri Lankans who at present are frustrated by the paucity of structured internship programs even amongst Sri Lanka’s leading companies.

Before I continue to the next two strands, it is useful to reiterate why a knowledge transfer visa is important. The above-mentioned benefits can only arise if potential foreign interns and volunteers have a mechanism of a special visa to reassure them that the purpose of their visit is properly disclosed and that their activity in Sri Lanka is welcomed and completely above-board within the stated purpose of the visa.

The same will apply, with voluntourism, which is a form of commercial tourism activity. Overseas companies that have a business model of arranging voluntourism abroad are more likely to add Sri Lanka as a destination if a KTV existed.

Volunteering

The second strand is Volunteering and here I define it narrowly to cases where a volunteer is not volunteering to build out their CV to help them gain paid employment in their home country. If they are doing so, it is covered under the Internship category. Under this definition, volunteers are people who fall into two broad categories. They may be volunteering for recreational purposes, coupled with wanting to do something that is societally useful. Or they may be people who are retired and on a comfortable retirement income who now have time and money to give something back to society. For example, a person in a highly paid job may come and volunteer for two weeks on a science (e.g. biodiversity surveys) or an arts project (e.g. cataloguing temple art). They may do this because they enjoy doing something different from their day job which is related to their personal interests and societally useful. This type of volunteering has become a significant form of tourism, known as voluntourism.

For the second type of volunteering an example would be a retired wildlife reserve manager from overseas who is happy to work for free with a Sri Lankan hotel or game lodge to train guides and provide practical help in rewilding the grounds of the property. They may enjoy mentoring and want to share their experience with others who are happy to learn from them. To take another example, it could be a retired museum curator who is happy to volunteer at a government museum to train local staff and inject fresh thinking into how exhibitions are curated.

The host country receives free expertise and valuable time from such volunteers. The volunteers are also paying tourists.

In G20 countries, volunteering is highly organised and has resulted in businesses that provide on-line platforms to match volunteers with recipient organisations. Sri Lanka can benefit from making it easy for people to volunteer and to come over, whether it is to paint hospital wards, help in beach clean-ups, or to help at a literary, music or cultural festival or to train local wildlife guides. Many volunteers will also look to add on a holiday extension to their volunteering stay. It is not just free people-hours of work and spending as foreign visitors: Carefully chosen good volunteers also bring in ideas, know-how, enthusiasm and energy.

Expert Exchange

The third strand in the knowledge transfer visa is for Expert Exchange. This is for people who are established in their discipline and looking to diversify their experience and build an international network by engaging in short term unpaid assignments overseas. For example, let’s assume a senior academic would like to spend a month working with local counterparts. Perhaps it is someone from a Management Science faculty who is interested in South Asian trade and wishes to work with local counterparts in a Sri Lankan professional institution or the Management Science faculty of a university. Or, perhaps it is an academic with an interest in contemporary Asian art. In such situations, a mutually useful arrangement between the foreign visitor and any local counterparts would be for the visitor to be provided a desk and some working space in the local faculty. Perhaps the visiting academic or professional can even undertake to give a certain number of lectures to Sri Lankan students. Relationships established in this way could lead to reciprocal invitations for Sri Lankan academics to attend foreign conferences and workshops and possibly help with Sri Lankan students receiving guidance and support with doing a PhD overseas. The visiting academic or expert is not being paid by the local partners in Sri Lanka and will continue to be on the payroll of their employer in their home country. Again, such visitors need to be reassured that what they are doing is deemed above -board and welcomed. They would not wish to come to Sri Lanka on a standard tourist visa for an engagement of this kind.

Short-term Study

The final strand of the knowledge transfer visa is for Short-term Study. Sri Lanka already has the skilled teachers and education infrastructure to offer undergraduate degrees from several foreign universities. It also runs accredited courses for professional qualifications from organisations that are based in G20 countries, whether it is in Accountancy or Marketing or IT. This capability can be expanded to provide ‘summer schools’ where foreign students arrive for a combination of classroom and field teaching. Local educational institutions can use their business initiative to develop curricula in consultation with foreign universities to meet the coursework credit requirements. If it is simple and easy to obtain a visa to attend such a course in Sri Lanka, this becomes a tempting offer for foreign students. In areas spanning from medicine, tourism, and the biological sciences, Sri Lanka can become an exciting destination for classroom and field work.

Conclusion

The results won’t be seen immediately as it takes years for local counterparts and foreign counterparts to respond and adapt to the benefits of such a visa. But slowly and steadily, we will see benefits accruing to the country. We also need to keep in mind that with anything that involves people, sometimes things don’t work out. A few foreign visitors or the Sri Lankan partners may not fulfil their obligations properly. We should not allow misguided fears of a few bad apples to block the massive potential for Sri Lanka to benefit from a simple but powerful idea that is easy to implement. It would benefit the private sector, state institutions, the universities, and many other sectors to encourage the government to introduce such a visa.

To conclude, if a knowledge transfer visa (KTV) is created which is as simple and quick to obtain as an online tourist visa, it will create a comforting and reassuring environment to encourage foreign visitors who are looking for something more than a short holiday. This will result in hard currency revenues in multiple ways as with ordinary tourism. However, there are potentially significant additional benefits from the bringing in of know-how, skilled people-hours of work, the scope for new types of businesses to develop, and allow Sri Lankan individuals, corporates and institutions to have doors opened for them for international business and academic opportunities. Furthermore, there is a huge Sri Lankan diaspora out there whose children and grandchildren do not have dual nationality but could be encouraged to bring their money and know-how for a longer length of time in Sri Lanka through a knowledge transfer visa.

by Gehan de Silva Wijeyeratne

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Corruption outed; Stirrings in the West

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Former President Mahinda Rajapaksa and wartime Defence Secretary and former President Gotabaya Rajapaksa paid floral tributes at the war heroes' memorial near Parliament on 20 May.

TV news showed Keheliya Rambukwella with a walking aid and grizzled unshaven, attending courts and leaving in a prison van. His son Ramith is implicated in a corruption case being heard against his father. So it’s a case of like father, like son. We recall this cricketer son was no gentleman. He supposedly broke into an office in his college – Royal, Colombo 7 – to interfere with a marks sheet or whatever.  More notoriously, returning from Australia as a member of a cricket team, he attempted opening a door of the Sri Lankan plane they were in. Doors in planes are extra strong and difficult to open; otherwise if he had succeeded, there would have been a fierce rush of air and he surely would have been dragged out to fall to the ocean or land and sure death. More seriously, havoc would have been created within the plane accompanied by dire danger to passengers.  He is supposed to be unemployed but living in a very expensive, luxurious flat.

Wages of sin

Not many like to see others suffering, particularly mothers of sons. But there was no sorrow, not a twinge, on seeing Keheliya limping and getting into a prison van; so different from the suave man he was. The reason is that one has to pay for sins and transgressions including the procurement of substandard and fake medicinal drugs for government hospitals.

There is no sympathy in Cass’ heart, even for Rambukwella Jr. since he developed within himself his father’s nature. The uppermost thought in her is that retribution is inevitable. Most people think it passes to manifest itself in the sinner’s next and future births. Not always. They suffer in this life too. Here is a solid example to prove this point.

When we women talk about corruption in this beautiful island some note that entire families are corrupt to the core and have collected vast amounts of illicit money, safely stashed away. They seem to be fine; the younger ones grinning from ear to ear, cock sure of themselves. But what about their minds, their nightly dreams? Are they afraid? Do nightmares torment them? Sure the older thieves suffer thus.

“Retribution often means that we eventually do to ourselves what we have done unto others.”

Qatar’s gift to President Trump

Why two remembrances?

Politicians particularly, often prove that Sri Lanka is a land like no other – negatively – Cass adds. The Medamulana Rajapaksa family proved this point on Tuesday 20 May.

The War Heroes Commemorative ceremony, which is Remembrance Day in Sri Lanka, is observed on May 19, when the end of the civil war in 2009 is marked. Those who died in the 28 year war, both armed forces personnel and civilians, are remembered on this day. A solemn ceremony was held in Battaramulla in the grounds of the stately National War Memorial, with the President, and army, navy and air force heads of that time present.  Also the nearest kin of those who gave their lives to save the country, mostly mothers and wives, laid red roses at the foot of the memorial.

Then surprise, surprise, another ceremony was held the following day at the same venue and most prominent were Mahinda and Gotabaya Rajapaksa. The news reporter of the channel Cass watched announced it was a memorial service for war heroes. But the war heroes had already been duly remembered the previous day by the entire nation. Pohottu members would have been present but it was not an SLPP ceremony. What was it then? A public remembrance by private persons since both brothers are out of politics and out of job now.

It is only in Sri Lanka that such a ‘circus’ can be staged. IWere the dead being used to shore waning popularity? Perfectly true, the two brothers did much to bring peace to the country; they went to war against severe objections and obstacles placed by local persons in secondary power, and foreign nations. But that does not justify a separate remembrance.

Maybe they do not know how such ceremonies are conducted in civilized foreign countries. They would not have watched the anniversary of VE Day (May 8) held in London and the respect and homage paid to WWII veterans and the remembrance of those who died in battle. Such an impressive, dignified late morning ceremony with King Charles III, Queen Camilla and other Royals present.  The country and its leaders unified in remembrance and gratitude. No politics whatsoever. In this country politics rears its Medusa head in all public occasions and even very private ones like weddings. Next year we may have two separate celebratory events for National Day – February 4.

Lies and subterfuges

As usual a mega Trump deal is surrounded by lies, denials, drawing the wool over the public eye and subterfuges which last means “deceit used in order to achieve one’s goal.”  The goal was getting a replacement for the presidential airplane which certainly is old – 40 years – and its interior not up to Trump’s garishly lavish standards. The Trump administration first approached Qatar to acquire a redundant Boeing 747 with a price around USD 400m to replace Air Force One. The other story is that Qatar reached out and offered the jet as a gift to Trump. The 747 flew to Florida in March so Trump could inspect it, which he did. A circulated report is that Qatar gifts the 747 to Trump personally to be used as his presidential jet and once he leaves the White House, it is his private possession. This tale one could well believe knowing the sort of a person Trump is and how wily Middle East potentates are: no giving without getting in return.

Cancer stalks American VVIP

Trump’s immediate predecessor has had another trauma.  President Joe Biden announced he had been diagnosed with aggressive prostate cancer, which means his days are numbered. He was the oldest US Prez but much admired and polled to be the 14th best president in the history of the US. His first wife and one-year daughter died in a car accident on December 18, 1972, just four years after marriage. He was a devoted father to his two sons aged 2 and 3 years then. At age 46, in 2015, his elder son Beau died of brain cancer, which Biden maintained was due to his service in the Kosovo war where dangerous gases were used. And now this illness at 82.  A good man given more than his fair share of tribulations.

Cruelty beyond measure

Deaths in the Gaza strip increase by the day as Israel bombards it with air missiles and debars food aid getting in. Children are dying by the hundreds and doctors in large numbers as hospitals are targeted for attack. Netanyahu has pronounced he wants the entire Gaza strip as part of Israel. How can he possibly expect this? However, at the rate the war is proceeding he will soon overcome Hamas and ride into Gaza as a vanquisher and acquirer. No nation seems to be ready to help the Palestinians.

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Trump’s trade tariffs pose hidden threats to Sri Lankan economy

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President Trump

Colombo, Sri Lanka – While U.S. President Donald Trump’s trade war primarily targeted global economic heavyweights like China and the European Union, its ripple effects are being felt across smaller economies including Sri Lanka. Experts warn that Trump’s protectionist trade policies, particularly the imposition of tariffs and the “America First” doctrine, could significantly impact Sri Lanka’s export-driven growth model.

Global Supply Chains Under Pressure

One of the most immediate threats stems from the disruption of global supply chains. Sri Lanka’s key industries, including textiles, apparel, and electronics components, are heavily reliant on imported raw materials. The U.S. tariffs on Chinese and other foreign goods increased global production costs, leading to delays and price hikes that affect Sri Lankan exporters.

“These disruptions trickle down,” says an economist at the Central Bank of Sri Lanka. “Higher input costs and reduced access to affordable materials can hurt the competitiveness of our exports.”

Falling Global Demand Hits Exports

Trump’s tariffs contributed to broader economic uncertainty, weakening global trade and slowing growth. This downturn has lowered demand for Sri Lankan goods, particularly in Western markets. Apparel exports, which account for over 40% of Sri Lanka’s total exports and rely heavily on U.S. consumers, are especially vulnerable.

“As American retailers reevaluate their sourcing strategies, Sri Lankan garment manufacturers face increased competition from countries like Vietnam and Bangladesh, some of which benefit from more favourable trade agreements,” notes a trade policy analyst in Colombo.

Foreign Investment and Tourism at Risk

The trade tensions also made investors more cautious, leading to a decline in foreign direct investment (FDI) in emerging markets. Sri Lanka, already grappling with high debt levels and political instability, may find it increasingly difficult to attract investment in its export-oriented industries and infrastructure projects.

Tourism a vital source of foreign exchange could also see knock-on effects. Global economic instability tends to reduce travel spending, which directly impacts Sri Lanka’s tourism sector.

Regional Spillovers from China and India

China, a key trading partner and infrastructure investor in Sri Lanka, was one of the main targets of Trump’s tariffs. As Chinese economic growth slows due to reduced U.S. trade, its demand for Sri Lankan commodities and its ability to invest abroad could also decline. Similarly, any reduction in India’s economic engagement due to trade tensions with the U.S. may impact regional cooperation and investment flows.

Out of the Trade Bloc Loop

Perhaps, more concerning in the long term is the global realignment of trade alliances. As the U.S. withdrew from multilateral trade deals and others like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gained momentum, Sri Lanka risks being left behind.

A Wake-Up Call for Trade Policy Reform

The indirect but significant threats posed by Trump-era tariffs underline the urgent need for Sri Lanka to diversify its markets, join new trade alliances, and upgrade its export infrastructure.

While the Trump administration, the shift towards economic nationalism and trade protectionism continues to influence global policy. Sri Lanka, as a small and open economy, must adapt quickly or risk falling further behind.

By M. I. D Perera,
Economist

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