7 July 2021 05:07 am Views - 1114
- US $ 200 currency swap will have multiplier effect
- B’desh supported SL at UNHRC in the spirit of good neighbourliness and in view of excellent bilateral ties
- So this is not only an indication of our growing capability, but also an indication of the importance we attach to our relationship with Sri Lanka
Bangladeshi High Commissioner to Sri Lanka Tareq Md Ariful Islam in an interview with Daily Mirror shares
The pandemic has created difficulties for all the countries across the globe and countries are in greater need of assistance from each other. The currency swap is a part of the overarching spirit of helping each other in times of need. This is the demonstration of Bangladesh’s genuine goodwill and neighbourliness towards Sri Lanka. This is the first time we have extended this kind of swap facility to any country. So this is not only an indication of our growing capability, but also an indication of the importance we attach to our relationship with Sri Lanka. Such a token gesture will definitely serve to enhance confidence in each other. In the first place this will enhance the relationship between the Central Banks of the two countries. Then this is expected to have a multiplier effect by spreading into other areas of cooperation. As I see it, this swap will definitely strengthen further the existing ties between the two countries. We are very happy to be of assistance to Sri Lanka.
Q You said this facility will have multiplier effect. Can you elaborate on it?
From the Central Banks the facility can open up opportunities to cooperate in the financial sector. This may instill greater confidence among the business communities to go for bigger business ventures and investments. Subsequently this may also have an impact on the larger ambit of economic cooperation. It may have a positive impact on trade, for example. It may have a positive impact on shipping. These are two vital areas of our bilateral relations.
Q How do you assess the full potential of bilateral relations yet to be realised?
The full potential of bilateral relations is yet to be realised. There is a lot of scope for improvement. The gamut of bilateral relations is very wide. It covers so many areas among which economic cooperation is the area to look at and explore further. Economic cooperation is mostly about trade and investment. These are the priority sectors. Trade is inextricably linked with shipping. One cannot go without the other. If we have a mutually beneficial and robust trade relationship, supported adequately by strong shipping connectivity, that will have immediate and the most beneficial effect on the peoples of the two countries. These can touch people’s lives. That is most tangible. That is how the full potential of bilateral relations can be realised.
Q How big is the potential trade relationship in your analysis?
As I look at it, one of the biggest potentials of bilateral relationship lies very much in trade. But, the bilateral trade volume is still quite low. That does not commensurate with the excellent political relations between the two countries. We need to take trade to the next level. That can bring immense benefits to peoples of both the countries. To take trade to the next level, we need some kind of facilitation. Here, the free trade agreement or preferential trade arrangement comes into the picture. We are thinking about starting with a preferential trade agreement to begin with. It will help us identify and explore our strong points and figure out how we can help each other.
We are very happy to know that the Sri Lankan Cabinet has recently approved of holding discussions for a preferential trade agreement (PTA) with Bangladesh to bolster trade flows between the two countries. This is definitely a welcome development and an important step in taking forward the process. We are hopeful of a good outcome.
Q Prime Minister Mahinda Rajapaksa visited Bangladesh in March. There were numerous agreements reached during the visit. What follow up action has been taken since then for the realisation of them?
During the visit a joint communique was issued on March 20, 2021. That is quite a comprehensive document. It covers all the areas of our bilateral cooperation. If you look at the joint communique you would see that the two prime ministers categorically instructed the relevant ministries and organizations of the two countries to take necessary measures for implementation; to follow up on their commitments and also the bilateral instruments. They also put a lot of emphasis on reinvigorating the institutional mechanisms between the two countries. These institutional mechanisms can be an important catalyst for enhancing further our overall bilateral relationship.
During the visit there were six MoUs and bilateral instruments signed and renewed. The first one was on youth development, the second one on agricultural research, the third one on vocational education, the fourth one on training of Bangladeshi nurses and healthcare workers in Sri Lanka. Sri Lanka is very good in nurses’ training. The fifth one was on cooperation between the Lakshman Kadirgamar Institute and Bangladeshi Institute of International and Strategic Studies. The sixth one was on cultural exchange programme. The two prime ministers also emphasized on follow-up and implementation of these bilateral instruments.
After the visit the two sides have been working closely for the implementation of the MoUs and the commitments made by the two prime ministers. The relevant ministries are using their own communication channels to carry forward their respective works. Given the gamut of our relationship there are a number of sectoral ministries which are involved. So coordination is a huge task. Coordination is done by the respective foreign ministries of the two countries. We, at the High Commission, are following up with our sectoral ministries for coming up with action plans, so that the commitments and the MoUs are turned into deliverables. At the same time we are also in touch with the Sri Lankan Foreign Ministry and sharing with them the progress achieved on our side. That is how the follow up is taking place.
The visit of Hon. Prime Minister Mahinda Rajapaksa to Bangladesh to join the celebration of the Golden Jubilee of our independence and the Birth Centenary of Bangladesh’s Father of the Nation Bangabandhu Sheikh Mujibur Rahman has been a high point of Bangladesh- Sri Lanka relationship. It is now our duty to see that the political goodwill is translated into sectoral cooperation. Here, follow-up is the key. In fact, this is a continuous process and we are a facilitator.
Q Bangladesh has foreign reserves up to US $ 45 billion. Sri Lanka’s foreign reserves are shrinking. In addition to the currency swap arrangement is there any other way of cooperation with Sri Lanka such as investment in Sri Lankan bonds?
When a country has hefty foreign currency reserves that definitely helps its economy in terms of investments-inward and outward, infrastructure development. For example we are using our foreign reserves for our own infrastructure development. This will have an overall positive impact on the country. There could be room for cooperation and perhaps it would take time to figure out what could be done.
Q The entire SAARC region has been battered by the pandemic. In your view how do the countries in the region cooperate with each other to come out of it?
The pandemic has taught us the importance of regional cooperation. Due to our regional similarities we have similar ground realities. Being regional neighbours we know the difficulties of each other better. We can help each other better. The regional neighbours are the first responders in any crisis. We saw it happening during the pandemic as well. In the region we have seen that the most successful pandemic managements find commonalities in adherence to science and reliance on home-grown practices. Regional and an evidence based approach in pandemic management can help us devise innovative solutions that can be applied across South Asia. It can lead to a new era of social alliance that can benefit the entire region. For example our government has announced setting up an international vaccine institute with the support of our development partners. That is an indication of what kind of regional cooperation we can have when it comes to pandemic and public health management.
Q What is the latest regarding the coastal shipping agreement between Sri Lanka and Bangladesh?
I will look at it as part of our greater shipping cooperation. Both Bangladesh and Sri Lanka are maritime nations. That is why both the countries have laid emphasis on shipping connectivity. With Bangladesh’s tremendous economic growth and position of Colombo Port as a maritime transhipment hub both the countries stand to benefit immensely from greater shipping connectivity. Based on this, the shipping services agreement was signed in 1979. It was renewed in 2011. This is an umbrella kind of agreement. To make it more responsive to the current needs and to enhance shipping connectivity, the idea of coastal shipping agreement was conceived. In coastal shipping, voyage takes place along coasts carrying destination cargo. Coastal shipping results in cost saving. These are the reasons why we are keen on having a coastal shipping agreement.
During the visit of the Hon. Prime Minister Mahinda Rajapaksa, shipping connectivity featured very importantly in the discussion. The objective is to promote shipping connectivity and at the same time open up opportunities for bilateral trade. Trade and shipping must go hand in hand. The two leaders also emphasised on early conclusion of the coastal shipping agreement. Now negotiations are on. We are hopeful of a fruitful outcome.
Q Bangladesh voted in favour of Sri Lanka at the UNHRC session. How does Bangladesh intend to cooperate with Sri Lanka in the international arena in the future?
Bangladesh and Sri Lanka are members of the UN, Commonwealth, Non-aligned Movement and many regional organisations like SAARC, BIMSTEC and IORA. We have common developmental challenges. We have common approach to most of the contemporary global and regional issues. We maintain close relationships at all these multinational forums and we will continue to strengthen these relationships. Bangladesh has been very consistent in supporting Sri Lanka in its fight against separatist insurgency. We have also been supporting Sri Lanka for long on human rights issues. As a continuation of that we have supported Sri Lanka at the UNHRC this year. That was done in the spirit of good neighbourliness, and in view of our excellent bilateral relationship.