In early December 2024, U.S. Assistant Secretary of State Donald Lu visited Sri Lanka for three days to bolster ties with the newly-elected JVP/NPP government, led by President Anura Kumara Dissanayake, who assumed office on September 23, 2024. This visit came shortly after the JVP/NPP secured a two-thirds majority in the parliamentary elections held on November 14, 2024, following a mass uprising that led to the resignation of former President Gotabhaya Rajapakse. Lu's visit emphasized U.S. support for Sri Lanka's economic recovery and democratic governance, aligning with the government's commitment to implement IMF austerity measures as part of a $3 billion bailout. [01e90959]
During a meeting on December 7, Lu reiterated the U.S.'s readiness to provide financial and technical assistance to strengthen Sri Lanka's security and economy, including expertise to recover illegally taken funds. President Dissanayake acknowledged the significant influence of political culture on corruption and highlighted ongoing efforts to improve rural living standards and public services. The meeting was attended by key officials, including U.S. Ambassador to Sri Lanka, Julie Chung, and USAID Deputy Assistant Administrator for Asia, Anjali Kaur. [0748944c]
The discussions between U.S. officials and Sri Lankan leaders are part of a broader strategy to enhance bilateral relations and address pressing economic challenges. Earlier, on December 5, U.S. Treasury Deputy Assistant Secretary for Asia, Robert Kaproth, met with Sri Lanka’s Finance Ministry Secretary, Mahinda Siriwardene, to explore collaboration opportunities aimed at strengthening Sri Lanka's fiscal resilience. Dissanayake emphasized the importance of attracting clean investments and ensuring autonomy for the Board of Investment (BOI) to prevent political favoritism in investment decisions. [83be6a85]
In addition to U.S. support, China is also seeking to strengthen ties with Sri Lanka, offering support in investment and technology. This geopolitical dynamic is critical as Dissanayake's administration is expected to shift further right to align with U.S. demands, potentially impacting the balance of international relations in the region. [01e90959]
In a related economic context, Sri Lanka's remittances fell for the first time in 28 months in November 2024, down 1.3% to $530.1 million. However, total remittances for the first 11 months of 2024 reached $5.96 billion, up 10.4% from the previous year. The government is also planning new relief measures for small and medium enterprises (SMEs) as the suspension of parate execution ends on December 15, 2024. [1b699000]
Earlier, on October 8, Ambassador Julie Chung had met with President Dissanayake, where she reiterated the U.S.'s commitment to supporting Sri Lanka's economic recovery through foreign direct investment and adherence to the International Monetary Fund (IMF) program. Ambassador Chung's remarks highlighted the importance of transparency and good governance in attracting foreign investments, which are crucial for stabilizing the economy. [784f3d0c]
The U.S. aims to work closely with Sri Lanka to foster an export-driven economy, focusing on renewable energy and agricultural development while addressing social welfare needs, such as expanding the school lunch program to urban areas. This multifaceted approach underscores the strategic partnership between the two nations as they navigate economic and human rights challenges. [b465138c]