India's National Magazine
From the publishers of THE HINDU
Vol. 15 :: No. 26 :: Dec. 19, 1998 - Jan. 01, 1999
COVER STORY
For better economic relations
V.S. SAMBANDAN
in Colombo
INDO-SRI LANKAN relations have seen the best of times as well as the worst of times. If the best was during the first tenure of Sirimavo Bandaranaike's Premiership in the 1970s, the worst was during the Premadasa Presidency, when Indian intentions were all but disregarded.
Curiously, both the high point and the nadir of Indo-Sri Lankan relations were directly linked to Sri Lankan affairs and Indian attempts to set its neighbour's house in order - the Janatha Vimukti Peramuna uprising of the 1970s and the ethnic conflict of the 1980s.
It has been the stated position of the present Sri Lankan administration that Indo-Sri Lankan relations were never better than they are now, a point reassured by the positive personal rapport between the Sri Lankan and the Indian leaderships. While the first step was taken by Prime Minister Sirimavo Bandara-naike, it would be left to her daughter, President Chand-rika Kumaratunga, to chart a new economic course for Sri Lanka.
On the eve of her state visit - scheduled for the last week of December, the spotlight, therefore, is on the economic cooperation front. Over the past few years, consistent efforts have been made to upgrade bilateral economic issues. This has now evolved into a situation where a major bilateral fast-track Free Trade Agreement will be concluded during the Presidential visit.
Thus, it comes as a refreshing new approach to bilateral relations. Increa-singly, economics is becoming a determinant in international relations - especially with the global movements towards free trade. In this context, the Indian offer of bilateral fast-track approaches in the region sets the backdrop for the present initiatives between New Delhi and Colombo on the trade front.
While the Presidential visit is expected to arrive at a broad agreement on Indo-Sri Lankan free trade, some of the issues relating to procedures as well as the domestic economic interests of the two nations will have to be concretised subsequently - sooner rather than later.
ANURUDDHA LOKUHAPUARACHCHI / REUTERS
Chandrika
Kumaratunga with I.K. Gujral, when he visited Colombo as Foreign Minister
in January 1997. One of the key elements of the Gujral Doctrine, which helped
improve ties with Sri Lanka, among other neighbours, was that India "does
not ask for reciprocity, but gives all that it can in good faith and
trust."
Figuring in the list of concerns is the issue which has been talked about in the South Asian Association for Regional Cooperation (SAARC) forums, namely the Rules of Origin, with smaller countries demanding a lower percentage for the domestic value added stipulation. Then, of course, there is the issue of the 'negative list' of products which will not qualify for free trade. Both these economic decisions have to be taken at the policy-making level. Although mutual interests on the economic front are high, any form of opening up of economies is bound to create ripples in domestic politics.
Although economics is expected to be a dominant feature during the course of the state visit, there are certain important cross-border issues which also require attention. With both countries enunciating the position that the Sri Lankan Tamil ethnic conflict is an internal issue of the island republic, it will be wishful thinking for anyone to believe that India - Sri Lanka's largest, and geographically the most proximate, neighbour - can or will be insulated from the conflict resolution process.
Following the largely tragic experience of the period 1983-1991, there has been virtually no public mention of any kind of role for India. But given geo-political realities, if any third party country is to have a role in resolving the conflict, related Indian concerns will have to be addressed.
Thus, Sri Lanka's prolonged, intractable ethnic conflict cannot escape being discussed during the visit, in some form or the other. Each side will be keenly interested in the other's nuanced appreciation of the issue.
While India is keen on consolidating the advances registered in bilateral relations in recent years, Colombo is upbeat about what lies ahead on the trade and economic front. In contrast to the issue of the internal ethnic conflict, where the two main Sri Lankan political groups, the ruling People's Alliance and the Opposition United National Party (UNP), have sharp differences of opinion, on the issue of India-Sri Lanka economic cooperation, there is an underlying common agreement - despite occasional discordant notes expressing political expediency.
In terms of economic substance as well as atmospherics, President Kumara-tunga's state visit will signal the closeness and problem-free state of the Indo-Sri Lankan relationship.
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