Speech by Mr. K M Mahinda Siriwardana, Secretary to the Treasury of Ministry of Finance, Economic Stabilization & National Policies of Sri Lanka on China-Indian Ocean Region Forum on Development Cooperation

Speech by Mr. K M Mahinda Siriwardana, Secretary to the Treasury of Ministry of Finance, Economic Stabilization & National Policies of Sri Lanka on China-Indian Ocean Region Forum on Development Cooperation

Kunming, Yunnan Province, China

21 November, 2022 

Your Excellencies,

Ladies, and Gentlemen, 

Good evening! 

I am extremely privileged to have been invited to this distinguished forum to represent Sri Lanka. Although it has been more than 70 years for the modern-day relationship between Sri Lanka and China, our two nations have been engaged in bilateral relations for almost 2,000 years. Therefore, it is an association that is not only lengthy but also robust, since it has endured many challenges over the history. 

Our region and China together are home to almost 3 billion people which represents more than one third of the total population of the world. There are opportunities and challenges which are both common to our region and also specific to each of our countries. As you are well aware, each of us has committed to follow a development growth path in line with the "United Nations 2030 Agenda for Sustainable Development". The growth framework and the development agenda of our country are based on the 17 Sustainable Development Goals set out in the Post-2015 Development Agenda, taking into account that some of these goals cannot be achieved by our own but rather need cooperation, support and coordination from our neighbors in the region as well as of those outside the region.

Unfortunately, the path to sustainable growth and development has been severely affected by the COVID-19 pandemic during the last 2 years which restricted economic activities. According to the International Monetary Fund , global growth is expected to slow from around 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. Beyond 2023, global growth is expected to decline to around 3.3 percent over the medium term. Therefore, it is essential to have multidimensional efforts and cooperation by nations to respond to the humanitarian crisis, prevent further economic disintegration, maintain global liquidity, manage over-indebtedness, mitigate the impacts of climate change and end the pandemic.

In this context, a strong and far-reaching policy response is needed from developing countries and the global community to spur growth, strengthen macroeconomic frameworks, reduce financial vulnerabilities, support vulnerable populations and mitigate detrimental impacts of long-term consequences of the global shocks of recent years. 

Your Excellencies, while there are significant disparities amongst the nations in the Indian Ocean region and China, in terms of size and resource allocations, cultures and climates, there are common problems we face that demands close collaboration. The regional cooperation would be the ideal strategy to assist any country that has been affected by global as well as its own recessions. Hence, I strongly believe that this development initiative, China-Indian Ocean Region Forum on Development Cooperation, which aims to promote regional cooperation, advance the blue economy, and address developmental challenges faced by many nations in this region, is an excellent platform for the countries in the Indian Ocean region to access high quality development cooperation. 

The risks that are posed by environment concerns in terms on climate change can also be translated into innovative financial products such as sustainable bonds, green and blue bonds. Technology transfer amongst us will ensure the future of each of our countries, bearing in mind that we have a significant number of young men and women who have already proved that they can change the world and that all they need is just an opportunity. 

Blue Economy is an emerging concept, which includes all industries and sectors that have to do with oceans, seas and coasts in the broadest sense, regardless of whether the activities take place on or in the sea or on land. These include: shipping, fishing, renewable energy production, ports, shipyards, aquaculture, algae production, tourism as well as research & development and education. Globally, 350 million jobs are linked to marine fisheries providing a substantial portion of the global population with food and livelihoods. The seabed currently provides 32 percent of the global supply of hydrocarbon with exploration expanding. 

Further growth of the Blue Economy is possible in several areas such as fisheries, aquaculture, mariculture, coastal tourism, marine biotechnology and marine energy. While some of these sectors require little backing and additional management, others need more and better planning to reach their full potential and achieve more sustainable results. 

According to the World Bank, this is a huge sector worth about $1.5 trillion a year. However, in our region, living marine resources are still poorly measured and studied and are rarely assessed properly. Therefore, partnership between academia, government and the private sector is critical to facilitating investment and commercialization of research and innovation in the Blue Economy and the ocean. 

As a member of the Indian Ocean Rim Association (IORA), Sri Lanka has already committed to follow the six pillars in the blue economy that the IORA Secretariat has identified. Those six pillars are:

• Fisheries and Aquaculture

• Renewable Ocean Energy

• Seaports and Shipping

• Offshore Hydrocarbons and Seabed Minerals

• Marine Biotechnology, Research and Development AND

• Tourism 

Building partnerships to develop the Blue Economy is key to the sustainable use of the oceans and the Blue Economy in the region. With better governance and incentives that balance natural capital with investment capital, responsible finance can generate returns and make a significant contribution to building the Blue Economy. 

As we know, China has already established Sustainable Blue Partnership Cooperation Network as an informal platform to facilitate the multi-stakeholder cooperation under the Blue Partnership, jointly initiated by the Friends of Ocean Action of the World Economic Forum and the China Oceanic Development Foundation, with the support from the Ministry of Natural Resources of China. 

In this context, I am confident that the nations in the Indian Ocean region will benefit from this forum incepted by China, through information and knowledge sharing, thematic dialogues, practices sharing, as well as insights and projects generation. 

Moreover, China's Belt and Road Initiatives (BRI) would provide a stimulus to developing economic environments in the region. This initiative would enable China and Indian Ocean nations to work hand in hand to foster new highlights in bilateral relations, advance the implementation of the Global Development Initiative, boost economic recovery and eventually to transform this region into a dynamic and promising hub for development. 

Therefore, I trust that this conference under the theme "Shared Development: Theory and Practice from the Perspective of the Blue Economy" would pave the way for the nations in the Indian Ocean region to reinforce the diplomatic as well as economic relationships, with the facilitation and support of China. 

All the very best! Thank You.