Sri Lanka has keen interest in CPEC: Envoy

Karachi: Sri Lankan High Commisioner to Pakistan Vice Admiral Mohan Wijewickrama has said that Sri Lanka was seriously looking at China-Pakistan Economic Corridor (CPEC) as this project, in addition to improving trade ties with Pakistan, would also open up a lot of trade opportunities with Central Asian Republics (CARs).

He stressed that Sri Lanka’s trade could be developed by connecting Gwadar Port with Colombo Port which was one of the biggest ports in South Asia wherein two more terminals, Eastern and Western terminals were being developed despite the economic meltdown suffered by the country.

Speaking during his visit to Karachi Chamber of Commerce & Industry (KCCI), the envoy expressed optimism about Sri Lanka’s recovery from the economic meltdown, the High Commissioner said that it happened as the government from time to time kept piling up debts that led to bringing Sri Lanka to the level where it was unable to pay its loans in 2021.

“So, the government had to take a decision whether to pay the loans and keep the people starved or feed the people and avoid paying loans so the decision was taken to default on one loan,” he remarked.

The High Commisioner added: “The government is quite confident that Sri Lanka would come out of economic crises as political stability has been achieved and negotiations are also underway with IMF for an extended economic facility with restructured loans while reforms will also be introduced in the loss-making enterprises”.

Wijewickrama maintained that Sri Lanka was in the right direction and “we have to make necessary corrections before we take off and are able to do business with our friends.”

Further, he said that the COVID-19 pandemic created a lot of problems for Sri Lanka as all its hotels and SMEs closed down during the pandemic period.

Commenting on Sri Lanka-Pakistan Free Trade Agreement (FTA) signed in 2005, he said that trade volumes doubled after the signing of FTA and the trend continued for a period of 10 years but then it became stagnated.

“Under the FTA, trade should have reached at least $2 billion but unfortunately it did not happen as we both are exporting to other countries and importing from other countries instead of each other”, Wijewickrama opined.

He stressed that SAARC members must explore ways and means to improve trade within the SAARC region which was even stronger than ASEAN in terms of GDP and population. “We will not need to look at anywhere else if we take steps to promote trade amongst SAARC countries.”

Appreciating the efforts being made by Sri Lankan Consul General in Karachi Jagath Abeywarna, the High Commissioner said, “A lot of activities have started taking place in Karachi thanks to all the sincere efforts made by Jagath Abeywarna.

Earlier President KCCI Mohammed Tariq Yousuf, while welcoming the Sri Lankan High Commissioner, stated that despite the signing of the Free Trade Agreement (FTA) in 2005, trade volume between Pakistan and Sri Lanka stood at US $457 million which was very nominal and needs special attention from both sides.

Highlighting the huge potential to accelerate bilateral trade between the two neighboring countries, he stressed that both sides must look into the possibility of removing trade barriers for greater ease in comparison to other countries

While highlighting the impact of the China-Pakistan Economic Corridor (CPEC) on regional economies, Tariq Yousuf advised Sri Lanka to become part of this project which will help in further cementing the existing ties through improved regional connectivity and also prove favorable in achieving economic growth and development.

“The strategic troika comprising Pakistan-Sri Lanka and China can offset the growing concerns of regional states and overcome the emerging geo-economic challenges,” he added.