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SRI LANKA2003

Improved bilateral relations bring great opportunities for U.S. business, says American Ambassador

A train passes by the American Embassy in Colombo.
Photo by James Overly
U.S. Ambassador, E. Ashley Wills
Courtesy of American Embassy, Colombo

E. Ashley Wills, departing U.S. Ambassador to Sri Lanka and the Maldives, acknowledges that for more than two decades, Americans have associated Sri Lanka with trouble. But, Wills says, times have changed.

“Sri Lanka is one of the most under-appreciated countries I can think of, but it is about to emerge in a starring role internationally. It’s time for Americans to get to know Sri Lanka, visit it, and take advantage of what it has to offer. The vision of ‘exotic Ceylon” (Sri Lanka’s colonial name) is about to recreated,” Wills says.

Most observers here would call such descriptions understatements. They reflect the long path Sri Lanka has traversed since the early 1970’s, when the country adopted strongly socialist political and economic policies. More significantly, the country is just emerging from a vicious twenty-year civil war that impoverished the country, both in spirit and treasure. Internationally, the country has departed from the naïve and unrealistic “Third World-think” that diminished its stature in America and the West.

“We began to examine our relationship with Sri Lanka as its policies began to diverge from the Non-Aligned Movement (NAM) and Group of 77 (G-77) in the 1990’s. As the (experiments with socialism ended and the) economy re-opened, our bilateral relations began to improve, “ Wills recounts. “Now, our bilateral relations are excellent, and the U.S. has worked effectively with governments of both major parties.”

But even as bilateral relations began to improve, the civil war between the “Tamil Tigers,” known formally as the Liberation Tigers of Tamil Eelam or LTTE, and the government of Sri Lanka complicated the relationship. “The United States felt some sympathy for the Tamils, because they were clearly being discriminated against. But terrorists took over their movement, and adopted means and methods that we found deeply offensive. Moreover, the U.S. could not support the Tamil demand for a separate state,” Wills says.

On the other hand, Wills continues, the U.S. found it difficult to support a democratic government facing a terrorist threat, because the Sri Lankan Security Forces were committing a number of serious human rights violations against the Tamils.

The assumption of power by the current government near the end of 2001 changed the situation. “This government came to power committed to ending the war and further opening the economy. It’s already the most open economy in South Asia, but this government wants Sri Lanka to be able to compete globally, and it is justified in believing that it’s possible,” Wills says.

A government with these goals, oriented toward working with the U.S., led the U.S. to be more active politically and economically. “In Sri Lanka’s quest for peace, we use our prestige and authority to back up the (Norwegian-brokered) peace negotiations,” Wills says.

“We still regard the LTTE as a terrorist organization, and no nation agrees with the LTTE demand for a separate state. But the Tamil grievances are real and must be dealt with,” Wills says. Because the LTTE is listed on the U.S.’s Foreign Terrorist Organizations list, “we have no contact with them but communicate our positions publicly. We tell the LTTE through our public statements that they have an historic opportunity to transform their movement into a democratic movement. Only, and I stress only, if they do that, will the U.S. take the LTTE off the FTO list,” Wills states.

That posture gives the Sri Lankan government moral support that is buttressed by official Washington reception and support given Sri Lankan leaders. “Prime Minister Ranil Wickremesinghe had an excellent meeting in the White House with President Bush last year, and Secretary of State Powell and Deputy Secretary of State Armitage are both personally supporting the peace process with strong statements when indicated.” Wills adds that Washington sees the prime minister as a “leader showing real guts in acknowledging the mistakes of the past, and in trying to invest his nation with a sense of possibility.”

And, Wills goes on, Sri Lanka indeed offers possibilities: “The peace process presents the possibility of creating a new constitutional environment for a federal government. The peace process here could easily serve as an example for other conflicts in the south Asia region.”

But it is in the economic area that Ambassador Wills and many others see the real sense of possibility for Sri Lanka. Wills points out that even during the height of the war, the country maintained the highest GDP per capita in the region, and an economic growth rate that averaged between 4 and 5 percent annually. The country has “the best indicators” in the areas of health and literacy in the region, and a high number of English speakers. “Sri Lanka could move quickly into the middle income per capita levels, and could be South Asia’s ‘Singapore,’” the Ambassador says.

So Wills and his staff have patterned official U.S. assistance to build on these strengths, and encourage Sri Lanka to be more competitive globally. The embassy has identified eight or nine sectors of the economy with the potential for fast growth and high export value. “There are immense opportunities for U.S. trade and investment in information technology, light manufacturing, agribusiness, tourism, gems and jewelry design and manufacture, health, basic infrastructure such as ports, roads, airports, telecommunications, and power generation.”

“U.S. firms have ignored Sri Lanka, but there is a market here of 19 million people, next door to a market of a billion – and Sri Lanka is the only nation that has signed a Free Trade Agreement with India. I foresee a major pickup of U.S. investment here with the end of the war.”

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