Sri Lanka warns of impact from increasingly protectionist measures pursued by certain countries

Sri Lanka has cautioned that the increasingly protectionist measures pursued by certain countries could significantly impact the growth prospects of the developing economies.
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath highlighted that the rules-based multilateral order is under threat, which could lead to adverse economic consequences for developing nations.
“On the economic front, selective decoupling and derisking are taking place, with increasingly protectionist measures being advanced by certain countries. These developments directly impact the businesses and economies, placing a significant strain on relationships between nations. This issue is not limited to the countries directly involved but also affects those that are integral parts of global supply chains,” he said addressing the 26th ASEAN Regional Forum Heads of Defence Universities, Colleges and Institutions Meeting, co-chaired by Sri Lanka and Cambodia, in Colombo this week.

He noted that as a result, there is an increased risk of widening global inequality and that geoeconomic fragmentation may also lead to more trade among the likeminded high-income economies, significantly affecting the growth prospects of the developing nations.
As an Indian Ocean littoral state, with a developing economy, Herath emphasised that ensuring maritime security and stability in the Indian Ocean region remains a priority for Sri Lanka.
“We want to provide services and economically benefit from the use of the ocean. We also want to capitalise on the economic rise of Asia. War, conflict and rivalry, unfortunately, detract from the important work we must do to achieve development, economic growth and prosperity for our people. In fact, these rivalries are detrimental to our progress,” he added.
He noted that Sri Lanka has traditionally maintained a non-aligned foreign policy and friendly relations with all countries while seeking to balance relationships with multiple stakeholders.
“Sri Lanka’s vision of becoming a hub in the Indian Ocean reflects its ambition to leverage its strategic position and resources to promote trade, connectivity, economic development and stability in the region,” he said. 
(NF)