{"id":181557,"date":"2017-08-31T21:01:39","date_gmt":"2017-08-31T15:31:39","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=181557"},"modified":"2017-09-04T01:51:36","modified_gmt":"2017-09-03T20:21:36","slug":"indian-ocean-sri-lankas-role-in-determining-the-future-of-the-world","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/indian-ocean-sri-lankas-role-in-determining-the-future-of-the-world\/","title":{"rendered":"Indian Ocean & Sri Lanka’s Role In Determining The Future Of The World"},"content":{"rendered":"

By Ranil Wickremesinghe<\/a> –<\/b><\/span><\/p>\n

\"\"<\/a>

Prime Minister Ranil Wickremesinghe<\/p><\/div>\n

We believe that maintaining the Freedom of Navigation is of paramount importance for Sri Lanka to become the Hub in the Indian Ocean. It is only then that we can reap the full benefits of our strategic location as well as the availability of ports on all coasts and two international airports with good land connectivity. The air and sea connectivity will naturally promote logistics.\u00a0Colombo will also be a center for offshore finance and business. Finally Sri Lanka will offer a competitive platform for manufacturing and services.\u00a0<\/span><\/em><\/p>\n

Let me refer to Sri Lanka\u2019s decision to develop its major sea ports, especially the Hambantota port which some claim to be a military base. I state clearly that Sri Lanka\u2019s Government headed by President Maithripala Sirisena does not enter into military alliances with any country or make our bases available to foreign countries. We will continue military cooperation such as training, supply of equipment and taking part in joint exercises with friendly countries. Only the Sri Lanka Armed Forces have the responsibility for military activities in our Ports and Airports. We are also working with foreign private investors on the commercial development of our ports.\u00a0<\/span><\/em><\/p>\n

*Text of the speech delivered\u00a0by Prime Minister Ranil Wickremesinghe at the 2<\/span>nd<\/sup><\/span>\u00a0Indian Ocean Conference –\u00a0<\/span>31<\/span>st<\/sup><\/span>\u00a0to 1<\/span>st<\/sup><\/span>\u00a0September 2017, Colombo:<\/span><\/p>\n

H E\u00a0Vincent Meriton,\u00a0Vice President of Seychelles;\u00a0<\/span><\/p>\n

H E Smt. Sushma Swaraj,\u00a0Minister of External Affairs of India;<\/span><\/p>\n

H E Dr\u00a0Vivian Balakrishnan,\u00a0Foreign Minister of Singapore;<\/span><\/p>\n

H E Tofail Ahmed, Minister for Commerce of Bangladesh;<\/span><\/p>\n

H E Iwao Horii, Parliamentary Vice-Minister for Foreign Affairs of Japan.<\/span><\/p>\n

Your Excellencies, <\/span><\/p>\n

Ladies and Gentlemen, <\/span><\/p>\n

Just a few hundred metres from Temple Trees, is an Ocean that is destined to define the future of the world. Sri Lanka, located enviably in the centre of the Indian Ocean<\/a> is well poised to play a significant role in determining this future. Our shores are washed by the waters of this great ocean. It has shaped us as a distinct people. Our future development is intrinsically linked to it and we share responsibility in keeping its waters safe. We believe, as people of the Indian Ocean, \u201cPeace, Progress and Prosperity\u201d are goals that need to be pursued together. <\/span><\/p>\n

We will continue to take a leading role, in bringing our partners in the Indian Ocean together to deliberate on issues of importance to all of us. It is in this context, that I warmly welcome you to the 2<\/span>nd<\/sup><\/span> Indian Ocean Conference.\u00a0<\/span>Thank you for being present here today.\u00a0<\/span><\/p>\n

Our good friend and neighbour, India, envisioned this forum to provide the re-establishment of the Indian Ocean Region as an economic entity.\u00a0<\/span>A welcome initiative to\u00a0 <\/span>remedy the undeveloped architecture for a closer regional cooperation. The India Foundation, held the inaugural Indian Ocean Conference in Singapore last year to consider ways and means of increasing regional connectivity. This is a topic which is vital to Sri Lanka both politically and economically.\u00a0<\/span>Together, we have convened political leaders, key officials, academics and researches to deliberate on the future of the Indian Ocean.<\/span><\/p>\n

Ladies and Gentlemen,<\/span><\/p>\n

We are meeting at a time when global and financial economic power shifts point toward Asia. The global economic power rebalance – away from the established advanced economies in North America and Europe, will continue well into the latter part of the century. Economic dominance, technology and military might, the basis of political power in the West has eroded to a significant extent by the extraordinary economic development of Asia in the last 50 years.\u00a0<\/span>The \u201cHSBC World in Forecast 2050\u201d forecasts 19 countries from Asia to be the largest economies by 2050.\u00a0B<\/span>y 2030 Asia is expected to surpass the West in terms of Global power, based on population, GDP, technology and military spending. 2016 Annual meeting of the Global Future Council convened by the World Economic Forum concluded that by 2030 there will not be a single hegemonic force,\u00a0<\/span>instead there will be a multipolar world \u2013 USA, China, India, Germany, Japan, Russia as the key players. <\/span><\/p>\n

These predictions are reassured by the recent Price WaterHouse Coopers (PWC) Report: World in 2050.\u00a0<\/span>It concludes that 9 (Bangladesh, India, Indonesia, Pakistan, Malaysia, Thailand, China, Saudi Arabia, Australia, Iran) out of 32 countries are predicted to be leading economies of the world, will be from the Indian Ocean Region. This reality will increase our strategic importance in the globe. <\/span><\/p>\n

In practical terms, some countries in Asia have already taken over from the advanced Western countries in purchasing power parity. Despite projected slowdown, it is predicted that the Chinese economy will supersede the US economy by 2028.\u00a0<\/span>India has shown great potential to become the second largest economy in the world in terms of Purchasing Power Parity by 2050. \u00a0 <\/span>Indonesia and Malaysia\u00a0 <\/span>are also predicted to achieve remarkable rates in economic growth and to have great potential to overtake some of the western countries in the Purchasing Power Parity by 2030.\u00a0<\/span><\/p>\n

ASEAN is poised to cover thirty percent of the global GDP, once the Regional Comprehensive Economic Partnership Agreement among the ASEAN countries is concluded.<\/span><\/p>\n

Despite these promising predictions, intra trade in the Indian Ocean region including\u00a0 <\/span>the Bay of Bengal\u00a0<\/span>remains\u00a0<\/span>low. For\u00a0<\/span>example, South Asia remains the least economically integrated region in the world. Unlike the European and Pacific nations, there is an absence of political will to promote Indian Ocean Economic Cooperation more specificially, trade liberalization and connectivity.\u00a0<\/span>Trade and connectivity are central to achieving and maintaining a high regional growth rate.\u00a0<\/span>The IORA Summit in Jakarta this year also focused on increasing economic and strategic integration of the region.\u00a0<\/span>The Jakarta Concord agreed to\u00a0 <\/span>at this IORA meeting contains a commitment to enhance trade and investments in the region by <\/span>(a)\u00a0<\/span>increasing intra IORA flow of goods, services and investments and (b) continuing regulatory reforms to promote competitiveness investments and ease of doing business.\u00a0<\/span>Therefore, let us make a start by implementing IORA Action Plan 2017-2027 recommendations on trade and investment proposals within the next four years.\u00a0<\/span>The plan envisages organizing capacity building and technical support for regional trade and investments with focus on facilitating and reducing barriers. Let this conference recommend to IORA the need for a credible strategy which will include:<\/span><\/p>\n