Sri Lanka’s path to economic growth through commercial diplomacy

Ambassador Laksitha Ratnayake, a career diplomat with 26 years’ experience compiled his book titled, “Foreign Policy and Commercial Diplomacy in the Economic Development of Sri Lanka (1948-2020).”

He has chronicleda detailed case study of the economic development experiences of Singapore, Malaysia, China, and India. It offers an in-depth exploration of Sri Lanka’s contemporary political and economic history, its foreign policy directions, and the role of trade, tourism, and investment agencies in the country. Additionally, it examines Sri Lanka’s foreign loans and interactions with major economic players worldwide. The book was launched recently in Colombo.

Chapter 1 sets the stage by exploring Sri Lanka’s economic development potential and introduces concepts such as foreign policy, trade diplomacy, economic diplomacy, and commercial diplomacy. It presents a framework that links commercial diplomacy to economic development, utilising Descriptive, Diagnostic, Predictive, and Prescriptive analytical methods.

Chapter 2 provides an analysis of Sri Lanka’s foreign policy from 1948 to 2020, examining the success and failure of commercial diplomatic practices across various regimes.

Chapter 3 delves into Sri Lanka’s current commercial diplomacy responsibilities, including the roles of political leaders, the Ministry of Foreign Affairs, diplomatic missions abroad, and promotional agencies like the Tea Board. It concludes with innovative ideas for advancing commercial diplomacy.

Chapter 4 offers a comprehensive look at Sri Lanka’s international trade, commercial dealings with major economic powers, and associated challenges. It highlights Sri Lanka’s economic background, foreign aid, exports, imports, and proposes strategies for enhancing trade, tourism, and investment relationships with countries such as the USA, the European Union, the UK, China, Japan, and India.

Chapter 5 presents a detailed case study of Singapore, Malaysia, China, and India, emphasising the valuable lessons Sri Lanka can learn from their development experiences.

Chapter 6 concludes with recommendations for improving Sri Lanka’s foreign policy, commercial diplomacy, and economic development. While some recommendations extend beyond the scope of the research, they are crucial for advancing commercial diplomacy in Sri Lanka. These insights are drawn from my 26 years of professional experience in diplomacy, alongside research findings.