Sri Lanka seeks new ‘win-win’ China relationship

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Sri Lanka seeks new ‘win-win’ China relationship

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Sri Lanka needs to overcome China-phobia by convincing people that it can develop a relationship with its larger neighbour that is now seen as over-reliant

Sri Lanka is looking to upgrade its relationship with China to counter concerns over the influence of its giant neighbour, its minister of finance Sandresh Ravindra Karunanayake told Emerging Markets.

Karunanayake said the public perception in Sri Lanka must be changed in order for the country to fully realise the potential of its relationship with China.

“The perception that there is a problem is the biggest issue here,” he said. “The China-phobia is a perception. We need to prove that we are not so reliant on them and that there are pro-growth activities than can happen in Sri Lanka without the intervention of the world.”

Karunanayake has spoken openly about his efforts to wipe out remnants of a corruption regime left by the previous government. This led to the suspension of the China-funded Colombo Port City project, which has recently been resumed.

“When we took over, we were repositioning ourselves on our promise to the public that we would have a clean administration,” he said.

“I think China realises what we are doing, and we understand what they are doing. We have come to a win-win formula. Today the projects are back in order and are in good shape. Our policy is to be friends with all and enemies with none. We want to engage the country, rather than entangle ourselves.”

He has set up independent commissions to ensure transparency and the transmission of the right information. “The judiciary is still far lagging the speed we would like it to work but we are heading in the right direction.”



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