Sri Lanka-China relations:

A golden era of friendship and co-operation

by Our Special Cor. in Beijing

Sri Lanka-China bilateral relations over the last half-century have remained firm, deep and consistent and have now extended into many areas of co-operation.

If we make an attempt to trace the history of the ancient relations between the two countries, the period could date back to over 2000 years. The relations were fostered through centuries by thriving trade exchanges along the southern Silk Route, and frequent as well as far reaching co-operation in culture, knowledge and technologies. Records left by travellers mostly monks and scholars, give us rich glimpses of these ancient relations and exchanges. Notably amongst such early travellers were Fa Xian, the Buddhist scholar who travelled to Sri Lanka in the year 410 AD and from the period 1405 - 1433 Admiral Zheng He, the famous navigator, had paid many visits to Sri Lanka. A stone tablet erected by Zheng He, is kept in the National Museum of Sri Lanka which stands testimony to the historic friendship between Sri Lanka and China.

All these historic ties and exchanges laid the foundation for Sri Lanka to sign the historic Rubber-Rice Agreement in April 1952, whereby Sri Lanka supplied rubber to China under a barter arrangement, receiving rice from China in return. The Pact set an early tone for our relations to develop as it was one of the first agreements that the People's Republic of China signed with a non-communist country. It has therefore been held out to illustrate that successful co-operation is possible between countries under different ideological systems.

Year 1957 saw a fruition of the previously established contacts when on 7th February 1957, the two countries established diplomatic relations and set up resident embassies in each other's capitals. The people of Sri Lanka found a trusted friend and partner in China as they continued to strive for realising their dream of building a harmonious and economically prosperous Sri Lanka. Consequent to the establishment of diplomatic relations both countries took a series of measures in the political, economic, trade and cultural fields to strengthen their bilateral relations. Politically every successive government in Sri Lanka has expressed unwavering support for the PRC's "One China" policy. It actively supported moves at the UN to restore to the PRC, its lawful right to occupy the seat of China at the UN. In 1996, Sri Lanka welcomed the transfer of sovereignty of Hong Kong to the PRC.

Sino-Sri Lanka relations have thrived over the years through frequent high level visits between the two countries bringing the leadership of the two countries closer to each other. All successive heads of Government of Sri Lanka have visited China, some more than once, to pave the way for broad based co-operation.

During the past three decades China as a developing country has witnessed a remarkable progress in her development. Since the reforms introduced by Deng Xiaoping, the effect of China's reforms has lifted hundreds of million out of poverty and has grown the economy to be the second largest in the world behind USA this year. Some social and political progresses have occurred as well, 89% and 85% of urban and rural communities, respectively, have set up congresses for democratic decision-making. Over 85% of village committees have been elected directly. Citizens receive a free nine-year compulsory education, and China has the largest system of higher education in the world. Social security spending has also been raised in recent years, to over US $ 300 billion.

The last four decades have also seen significant changes in China's relations with other countries. In the period 1978 to 2008, China's overall foreign trade skyrocketed from US $ 20.6 billion to US $ 2.56 trillion; its foreign exchange reserves grew from US $ 167 million to over US $ 2.4 trillion by 2010 June; foreign investment jumped to over $100 billion; and the number of Chinese students studying abroad has risen from 52 thousand to 1.36 million in 109 countries.

Rapid changes

In Sri Lanka's perspective, having identified the rapid changes occurring in the international political environment, President Mahinda Rajapaksa realised the need to follow a two track policy approach in pursuing his vision of a political leadership, whereby he approached simultaneously the war against terrorism while giving equal importance to his strategies of economic development and empowering the people of Sri Lanka. In his new vision for Sri Lanka, as depicted in his strategic masterpiece The Mahinda Chinthana Policy, the President's pragmatic foreign policy ideologies with a commitment to the principles of Non-Alignment, and the maintenance of friendly relations with all countries, have been strongly enunciated. This together with Sri Lanka's strong support of the United Nations system and its initiatives for development and progress, have resulted in the eradication of terrorism from Sri Lanka's soil and steering the Island nation towards development and prosperity for her people. His foreign policy initiatives were driven with the goals of seeking international cooperation in the fight against terror both in Sri Lanka and elsewhere. In this process he sought the support of the international fora for eradication of the threat of terrorism not only from the soils of Sri Lanka but championed this cause internationally. The deep commitment to the principles of international law by both Sri Lanka and China have naturally resulted in principled positions adopted by both countries vis-a-vis each other's issues of national interest. On its part, Sri Lanka appreciates China's principled stance in the regional and multilateral fora in defending Sri Lanka's territorial integrity and sovereignty.

The last four years of Sino-Sri Lanka relations with the stewardship of President Mahinda Rajapaksa would no doubt be written in golden letters in the history of Sri Lanka-China Relations. With the forthcoming visit, China would witness four visits by President Rajapaksa since 2007, with full bilateral meetings with the Chinese leaders. The visits, firstly in February 2007, was to celebrate the 50th anniversary of the establishment of diplomatic relations between the two countries. This was no doubt the turning point in bringing our bilateral relations to a track of multifaceted co-operation, which have thereafter steadily developed. This first State visit to China in 2007, paved the way for signing of eight Agreements in the fields of economic and technical Co-operation, in urban development and city planning, establishment of friendship city relationships, promoting two way investment, co-operation in the film industry, augmenting agriculture capacity of the two countries and promoting co-operation in academic exchanges. This multipronged approach established in 2007, saw an evolving framework for a new partnership that would reach new vistas and heights.

The foundation was further strengthened with President Rajapaksa's visit to China once more in April 2008 to attend the Boao Forum, thereafter in August 2008 to attend the opening ceremony of the Beijing Olympic Games and the fourth would be in October 2010 for the closing ceremony of the Shanghai Expo 2010.

These visits saw and will witness broadened interactions and exchange of views by the two leaders in enhancing political trust and mutual co-operation.

Go Western strategy

Flowing from the agreements inked during the Visit in 2007, a notable improvement has been seen in the level and depth of co-operation between the two nations in all related fields. President Rajapaksa's razor-sharp political vision facilitated the opening of Sri Lanka's first Consulate in Shanghai, the financial capital of China enhancing Sri Lanka's reach in the economically prosperous Eastern China. The positive effects accrued from this decision have paved the way for the opening of the second Consulate in Chengdu, Sichuan Province in West China, which would service over 300 million people living in the region. Particularly in "Western China" due to a policy initiative adopted by the Chinese leadership entitled "Go Western Strategy" many opportunities have arisen for Sri Lanka to co-operate with them in strengthening and consolidating the existing economic partnership. Sri Lanka has henceforth witnessed increased air-traffic connectivity eastern and the south-eastern regions of China. SriLankan Airlines have commenced operations of four frequencies a week to Shanghai. In complementing this procedure the China -Eastern Airlines commenced flights to Sri Lanka from September setting a historic hallmark of being the first Chinese carrier to operate to Sri Lanka.

Sri Lanka's co-operation with the regions in China have expanded in manifolds since 2007. Proposals are also under way for Hainan Airlines to commence operation to Sri Lanka in 2011. SriLankan Airlines is also planning to increase its flight frequencies to Beijing and to commence flights to Guangzhou, the southern city of China, enhancing the present capacity to generate tourist traffic between the two countries and facility people to people interactions. The China National Tourism Agency expects 54 million Chinese travellers to visit overseas during the year 2011. With the defeat of the LTTE terrorism in May 2009, the Chinese travellers to the Island have increased by 20%.

The Sri Lanka Embassy in Beijing together with the Consulates in Shanghai and Chengdu have worked closely with the Sri Lanka Tourism Promotion Bureau in setting out targeted promotional campaigns in attracting this vast outbound tourism market from China, particularly in the context of "Visit Sri Lanka 2011" - promulgated by HE the President in his quest to make Sri Lanka the "Emerging Wonder of Asia"

The Regional leaders of the Sichuan and Yunnan Provinces have recently visited Sri Lanka in initiating a productive co-operation partnership amongst the business circle and strengthening people to people interactions. These visits only complemented the previous visits that have been made by leaders of Tianjin, Shanghai etc. in encouraging a steady flow of tourism generation and facilitating a public-private partnership amongst the business circle.

The recent visit by the Governor of Yunnan to Sri Lanka in September with a high-level delegation of closer to 200 persons comprising both the public sector officials and the business circle of China, is another notable achievement in the progress of this regional partnership.

Through sister - city arrangements cities of Sri Lanka and China are linked i.e Hambantota and the City of Guangzhou, Polonnaruwa and the City of Kunming, Colombo the Commercial Capital of Sri Lanka is linked with Shanghai the Financial Capital of China, Nuwara Eliya the hill capital of Sri Lanka is linked with Yongzhou in Hunan Province of China, Sri Jayawardenapura, Kotte is linked with Hangzhou, the capital of Zhejiang Province of China, Bentota is linked with Yancheng in Jiangsu Province.

Such mechanisms would harness the possibilities of exchange of technological know-how in urban city planning and other ventures related to urban/hinterland development in Sri Lanka. Linking of these cities have also uplifted infrastructure construction and enabled the economic empowerment of the people of Sri Lanka.

Fledgling co-operation has also been established in the field of agriculture since the signing of the first MOU between the Ministry of agriculture of Sri Lanka and the China Institute for Agriculture mechanization Sciences. Many programs have been activated in Sri Lanka for technological exchanges, cultivation and exchanges of hybrid seed varieties etc.

Cultural exchanges

Culture and education is another area that had seen a marked improvement. Tracing its roots to the very inception of a Buddhist origin. Wide and profound cultural exchanges have been conducted constantly maintaining a splendid dimension in the Sino-Sri Lanka friendship. An added significance to this factor is the efforts made in bridging the cultural gap through language. President Rajapaksa during his State Visit in 2007, laid the foundation for this connection by establishing the Confucius Centre in the University of Kelaniya. This had enabled cells to be established for effective learning of the language in Sri Lanka. The Government of China is also providing over 100 scholarships for Sri Lanka students to pursue their higher education in Chinese Universities. Sri Lanka and China have also linked up in Sister - School Programs in strengthening interactions amongst the student communities of the two countries.

During this tenure of President Rajapaksa, close links have been established by Madam Shiranthi Rajapaksa, the First Lady with the All China Women's Federation (ACWF) with each side undertaking reciprocal visits to the respective countries. The All China Women's Federation pledged initial support to strengthen the capacity of rural women and donations of computers and sewing machines worth of US $ 70, 000 were made.

Madam Rajapaksa during her two visits to China in both 2008 and 2009 had high level discussions at the Great Hall of the People with Madam Chen Zhili, President of All China Women's Federation (former) and Vice President Meng Xiaosi with regard to development projects to be initiated for women & children.

During her representations to the Chinese officials, she espoused the fact that every step to improve the lives and social standing of women has ripple effects on health care, education, and economic development throughout the world's poorer communities.

President Rajapaksa has clearly articulated the need for youth to be empowered through a balanced education, skills development sports and recreation in an environment enriched by culture and religion.

Namal Rajapaksa, Member of Parliament has already enlisted youth co-operation between the two countries. In his visit to China in August 2010, a framework arrangement was signed for collaboration in the fields of youth exchanges on the basis of mutual benefit with the Chinese Peoples Association for Friendship with Foreign Countries (CPAFFC) in creating avenues for the youth of both countries to interact closely. The Sports Co-operation Agreement signed with the State Administration of Sports of China in the year 2008, has already paved the way for successful training programs to be conducted for trainers and swimmers from Sri Lanka for a duration of one month in China in the first half of 2010.

Many opportunities

Sri Lanka in strengthening her regional interactions with China, and other West Asian nations have been proclaimed a Dialogue Partner of the Shanghai Co-operation Organization. Joining the SCO in her present capacity has provided many opportunities for the country to establish a healthy dialogue in the spheres of security and economic co-operation. Further through the other regional linkages such as the "Shangri-la Dialogue "Asia Co-operation Dialogue (ACD) and the Asian Regional Forum, Sri Lanka has set the stage to pursue nationally important goals.

China stood as a true friend of Sri Lanka in her long drawn battle against terrorism. During the initial post-war stages of averting a humanitarian catastrophe of settling over 290, 000 internally displaced persons, China's humanitarian assistance in myriad forms, including assistance in the form of provision of shelter, rations and demining activities in the conflict affected areas is acknowledged with much appreciation. With the dawn of peace, Sri Lanka has embarked on the fast track of economic and social development. The frequent interaction by the two leaders notably since 2007, have reinforced co-operation in this sphere with China emerging as a key partner of Sri Lanka's socio-economic development. Development assistance given by the Government of China to fund key infrastructure projects in Sri Lanka would accumulate to over US $ 3 billion during the last 3 and a half years in the vital areas of ports, airports, highways, power generation etc.

Export growth

Trade between China and Sri Lanka has become a significant aspect in the economic relationship showing great potential during this 3 year period. During the many interactions the President Rajapaksa had with the leaders in Beijing, the need to carve out a partnership within the business circle was clearly enunciated. A special emphasis should be given to the commitments pledged by the leaders to facilitate the business circle of the two countries to act as the engine of growth. Stemming from this aspect Sri Lanka's exports to China reached US $ 72 million for the first nine months of 2010. Compared to 2009 same period, it is a 52% growth of Sri Lanka exports to China. Even during 2009, Sri Lanka was able to achieve a positive export growth rate despite the global economic downturn. According to the projected growth rate Sri Lanka is set to achieve the target of US $ 100 mn exports to China by end 2010. This is a significant achievement compared to the US $ 34 million export volume achieved in 2006. Facilities have been extended by the Chinese Government, particularly through the Asia Pacific Trade Agreement (APTA) by extending many tariff concessions to Sri Lanka exports products to carve a niche in the Chinese consumer market.

The Embassy of Sri Lanka during the past three years in order to implement the Mahinda Chinthana has been able to create a positive reflection among the Sri Lankan Exporters with regard to the potentiality of the Chinese Market and also with the Chinese Consumers.

Having participated in more than 25 Trade fairs across China in 2009 and more than 20 up to August 2010, China now has become one of the most sought after markets for Sri Lanka gems and the finest tea from Sri Lanka and the largest buyer of coir fibre.

Within three years China has transformed from an insignificant export market to one of the most vital market for many of the Sri Lanka exports.

The twin factors of durable peace and political stability that Sri Lanka is experiencing in the present juncture due to the visionary leadership of President Rajapaksa has also resulted in a surge of investments from China to Sri Lanka. China became the largest investor of Sri Lanka. Reflecting of the Mahinda Era it has already shown that no "third element" could ever obstruct the evergreen China-Sri Lanka relationship.

Rajapaksa Government has clearly understood and identified that the resurgence of China's civilization a defining theme of the twenty-first century and a factor of constancy in the world.

President Rajapaksa has left no vagueness in identifying that China was, and would continue to be, a major root of Sri Lanka's foreign policy.

Sri Lanka's enthusiastic celebration of 50 years of Diplomatic Relations in general and the taking Sino-Sri Lanka relations in particular to all time high during President Rajapaksa's era all indicate the continuation and consolidation of this "special relationship".

Although many proverbs are attached to this relationship - "all-weather", "time-tested" and "a model relationship" - this is in essence a realistic and sensible partnership based on geographical closeness and mutual needs. Regular exchange of visits at highest level, mutual consultation and support for each other's polices at various forms and non-interference in each other's internal affairs will no doubt further strengthen this relationship.