January 16, 2025 Reading Time: 2 minutes
Reading Time: 2 min read
The Executive Director of the Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), Ambassador Ravinatha Aryasinha, in an essay titled “Economic Diplomacy for Transformation in Sri Lanka,” has critically examined the role of economic diplomacy in shaping Sri Lanka’s journey towards economic recovery and sustainable growth.
The essay was part of the ODI Global publication “Sri Lanka: From Debt Default to Transformative Growth,” edited by Dirk Willem te Velde and Dr. Ganeshan Wignaraja, launched in Sri Lanka at an event hosted by the Sri Lanka Economic Association (SLEA), in collaboration with ODI Global and held at the University of Colombo on 16 January 2025. University of Colombo Department of Economics professor and Sri Lanka Economic Association, President Prof. Rev. W. Wimalaratana chaired the discussion. The publication included 14 essays penned by Sri Lankan and international experts, offering 27 actionable proposals to propel Sri Lanka towards a future of transformative growth.
Drawing from his essay, “Economic Diplomacy for Transformation in Sri Lanka,” Amb. Aryasinha critically examined Sri Lanka’s history of economic diplomacy, noting its mixed results. He emphasized that the current debt and economic crisis presents a unique opportunity for national agencies and the Ministry of Foreign Affairs to intensify efforts to boost trade, investment, and tourism.
He outlined five actionable proposals to strengthen Sri Lanka’s economic diplomacy: improving inter-agency coordination; creating hub missions staffed with specialized personnel; enhancing engagement with diaspora communities; ensuring a consistent domestic policy and regulatory framework; and fostering a level playing field for all foreign investors. Amb. Aryasinha underscored the importance of aligning these initiatives to restore global confidence and position Sri Lanka as an attractive destination for trade and investment.
Key themes of the discussion of the publication included fostering cross-party consensus, maintaining trade openness, combating corruption, ensuring debt sustainability, and prioritizing inclusive growth through social safety nets. The event also underscored the critical role of young professionals and future leaders in shaping the nation’s economic trajectory.
Link to the article: https://media.odi.org/documents/SRI_LANKA_12_Economic_diplomacy_for_transformation_in_Sri_Lanka.pdf
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