Sri Lanka indicates postponing Free Trade Agreement with China

Colombo/Beijing: Elections for local government bodies will be held in Sri Lanka this weekend and there are indications the prime issue for this will be of Chinese influence. In view of this, the Sri Lankan government is making efforts to defer the signing of the Free Trade Agreement with China. The Sri Lankan envoy in China has made the statement. Last month China and Sri Lanka have signed a 99-year agreement for the Hambantota port.

Over the last decade, China is aggressively trying to increase its influence in Sri Lanka and Hambantota port agreement, Airport construction, Colombo port, Kandy-Jaffna highway and the projects started in various parts of the country, are believed to be prominent examples of this. Former Sri Lankan President, Mahinda Rajapaksa, was a supporter ‘Chinese’ investment and it is seen that China has got a strong foothold during his tenure. But, after the defeat of Rajapaksa, the scenario has changed and there is a largescale opposition to the Chinese involvement.

India, the leading trade partner and friend of Sri Lanka, has also objected to the Chinese intentions. Recently even the Indian Defence minister, in her statements, had raised questions about the Chinese activities in Hambantota. The US too has expressed displeasure about the Chinese movements in Sri Lanka and has advised to exercise caution. The Sri Lankan political and social groups have expressed concerns over the Chinese influence and have even demonstrated against it.

Against this background, the statement of the Sri Lankan envoy to China draws attention. ‘Sri Lanka feels that the process of signing the trade agreement should be prolonged further. China is in a hurry to close the proposal. Sri Lanka is a small economy and we have to get a consensus from other groups. Therefore, the process can take some more time. But, we are confident of signing the agreement with China’ the Sri Lankan envoy Karunasena Kodituwakku indicated the deferment of the agreement with this statement.

Although, trade with China is important for Sri Lanka, it will be difficult for the local industry to open up the important sectors in a short time. Thus, we will have to have a balanced approach. This is what he had to say in support of the decision to defer the agreement. It is assumed that the efforts to defer the agreement are for reducing the displeasure at the local level.

Sri Lanka is having Local Self-governing body elections on the 10th of February and the prime issue for these is predicted to be of Chinese influence. In view of this, there are indications of deferring the agreement to avoid any further problems for the government, claim the analysts.