“SL’s investment environment is complex and full of hurdles” – Paul Stephens Australian HC

• Australian companies are also looking to invest in Sri Lanka’s renewable energy and mining sectors
• Australia and Sri Lanka enjoy ‘gold standard’ cooperation in preventing people smuggling to Australia
• Southern India, on its own, is a market of over 200 million people right on Sri Lanka’s doorstep
• Quad wants Sri Lanka to be in a stronger position to safeguard its own sovereignty and resilience as a stable and prosperous Indo-Pacific partner
• Sri Lanka sought to introduce organic farming very quickly without the necessary foundation and preparation

Australian High Commissioner Paul Stephens, in an interview with Daily Mirror, responded to questions covering a broad range of issues related to bilateral ties.  He maintained that there is no chance of illegal migration to Australia.   

Excerpts:

QWhat are the latest initiatives for the development of bilateral ties?

Australia and Sri Lanka recently commemorated 75 years of diplomatic relations, representing a significant milestone in our bilateral ties. In response to Sri Lanka’s recent crisis, the Australian Government provided an AUD75 million injection of humanitarian funding support to Sri Lanka. This humanitarian support focuses on improving food security and health services targeting the most vulnerable people including households primarily supported by women.  Furthermore, Australia’s longstanding development cooperation programme is helping to stabilise the Sri Lankan economy and move it toward a growth path.  In this respect, we focus much on providing support to sectors in the economy with great potential including tourism, hospitality and agriculture. Australian companies are also looking to invest in Sri Lanka’s renewable energy and mining sectors which would be new areas of engagement. We hope those potential investments can commence soon.  

We maintain close practical cooperation with the Sri Lankan Navy, Air Force and Coast Guard, along with the Ministries of Defence and  Foreign Affairs. However, at the same time, we understand that Sri Lanka’s economic and social circumstances have contributed to a push factor for people smuggling

QSri Lanka and Australia enjoy excellent ties regarding the prevention of illegal migration. What are the emerging challenges in this field given that many Sri Lankans are resorting to migrate to different countries? 

Australia and Sri Lanka enjoy ‘gold standard’ cooperation in preventing people smuggling to Australia. We maintain close practical cooperation with the Sri Lankan Navy, Air Force and Coast Guard, along with the Ministries of Defence and  Foreign Affairs. However, at the same time, we understand that Sri Lanka’s economic and social circumstances have contributed to a push factor for people smuggling. Vulnerable people may be prone to the false narrative that unscrupulous people smugglers propagate the idea of migrating, when in reality there is ‘zero chance’ that any illegal smuggling operation will be successful in reaching Australia. Anyone considering such a venture will be undertaking a perilous, life-threatening sea journey and will only end up being returned to Sri Lanka; where they may face criminal charges and be out of pocket for the fees they have provided to criminals.

I do want to emphasise that Australia welcomes migration to our country via legal pathways – we are a country built on migration, with more than 50% of our population having been born overseas themselves or having had one parent born overseas. Many Sri Lankans and people of other nationalities have taken advantage of legal opportunities to visit Australia as tourists, study in our universities, or fill skills gaps in our labour market. The Sri Lankan diaspora in Australia is a vibrant and active contributor to our multicultural society. 

QBoth the countries are members of the Indian Ocean Rim Association (IORA). Sri Lanka is now going to take over its chairmanship. In what ways can Australia and Sri Lanka cooperate in containing drug trafficking and ensuring maritime safety? 

IORA is an important organization where the countries of the Indian Ocean region can come together to work for a more prosperous and stable region. Australia is very much looking forward to supporting Sri Lanka as the island nation is about to take up the chairmanship of IORA later this year. In particular, we will support Sri Lanka in priority areas such as maritime security and disaster risk management. Australia is looking at the potential of taking on the role of IORA coordinating country for maritime safety and security; a role previously played by Sri Lanka.  In this regard, Australia looks forward to continuing the good work done by Sri Lanka in countering drug trafficking, illegal fishing and people smuggling.  Even beyond IORA, we want to ensure that Sri Lankan agencies have the assets, capability and training they need to best protect their maritime domain.  

QWhat is your assessment of the strength of Sri Lankan agencies?

We have a strong, collaborative relationship in maritime security built up over more than a decade of partnership. Through this partnership, Australia can offer training and assets to counterpart agencies in Sri Lanka. We are always impressed by the enthusiasm of Sri Lankan agencies to build their capabilities and respond to operational needs. 

QAustralia is a member of the Quad. It is also a member of AUKUS. Sri Lanka is strategically positioned in the Indian Ocean. The Quad is a grouping basically to contain China as widely opined. What kind of a role does Australia expect Sri Lanka to play as far as the Indo-Pacific security is concerned?

There is quite a bit of misinformation about the Quad. I want to make it clear that the Quad is not a military alliance, but a diplomatic initiative with a positive and practical agenda. It is not directed at containing any country.  Australia is looking forward to hosting the Quad leaders’ summit on 24th of May, as Prime Minister Albanese recently announced. The summit will be an opportunity for Quad countries to continue advancing the Quad’s broad and practical agenda, including collaborative initiatives focused on climate change, clean energy, health security, infrastructure, connectivity, and critical and emerging technology. Furthermore, we will be looking to advance the implementation of the Quad’s partnership in the Indo-Pacific on maritime domain awareness. 

The Quad comprises four countries which are working together with Indo-Pacific partners. We work in a transparent manner to offer choices, not to force choices. The Quad wants Sri Lanka to be in a stronger position to safeguard its own sovereignty and resilience as a stable and prosperous Indo-Pacific partner.   

QDoes Australia want Sri Lanka to join the Quad?

Quad members are not seeking to expand the Quad, although as I have said the Quad is very much focused on working with partners. This includes working closely with regional organisations like IORA and ASEAN to advance the Quad’s practical and positive agenda.    

QWhen you say ‘free and open Indo-Pacific’, what does it really mean?

Australia’s interest is in building an Indo-Pacific region that is stable, sovereign and resilient. A region where all countries, whether small or large, have control over their own agency, can exercise their sovereignty, and are able to freely engage with other countries. 

QWhat are the barriers you see for the two countries to realise their full potential in bilateral trade?

Sri Lanka has huge potential in trade and investment including as a logistics hub.  Sri Lanka’s geographic location is naturally advantageous, positioned on a key transshipment route and close to large and emerging markets in South Asia. Southern India, on its own, is a market of over 200 million people right on Sri Lanka’s doorstep. The Sri Lankan President Ranil Wickremesinghe is keen on modernising and transforming the Sri Lankan economy towards more export-oriented industries with value addition, and to integrate the country more closely into global value chains.  These are objectives Australia supports. But the ease of doing business and attracting foreign investment remain challenges. A number of Australian companies are interested in investing in Sri Lanka, which would help the economic transformation that Sri Lanka needs. But the investment environment is complex and there are a number of hurdles in the way of obtaining approvals needed for investment plans to come to fruition. 

QEarlier, there was a news report that there is a potential for grains produced in Australia to be processed in Sri Lanka for exporting to nearby markets. How feasible is such an Australian investment in Sri Lanka?

This is very much a live proposal which I have raised with a number of Sri Lankan representatives in government and business. This kind of investment will be important to help Sri Lanka’s long-term recovery and growth – to build an export-oriented economy. While Australia has done the work to develop the proposal, there now needs to be a champion within the Sri Lankan system who is able to implement and take it forward. Australia continues to stand ready to assist. 

QIn your capacity as the High Commissioner, what will you do to promote Sri Lanka as a destination for Australian tourists?

Australians are great travelers. When they travel, they tend to stay longer and spend more.  In the aftermath of the Easter Sunday bombings, Australian tourists were the first to come back in big numbers.  Moreover, following Sri Lanka’s recent economic crisis, Australian tourists are returning once more and rank among the top 7 international visitors to the country. 

Australia’s focus is not just on promoting Sri Lanka as a destination for Australian tourists, but in helping prepare Sri Lanka’s tourism sector to receive more higher-value tourists from all countries.  To this end, our development cooperation programme has worked very successfully with Sri Lankan partners to build the skills in Sri Lanka’s labour market to fill jobs in the sector – for example, as chefs and tourist guides.  

At the policy level, Australia has funded the development of Sri Lanka’s Tourism Strategic Plan 2017-20 and Tourism Action Plan 2022-25, which provide critical policy underpinnings to drive growth in the sector. And through the Australian-funded Market Development Facility, we have supported better collection of tourism data, promotion of high-value niche segments and improved coordination among the private sector. These are all essential for Sri Lanka’s tourism industry to deliver on its amazing potential. 

QAustralia is a country with a successful organic farming sector.  Sri Lanka experimented and failed at this. What lessons can Australia offer to Sri Lanka as far as eco-friendly agriculture is concerned?

I don’t think it’s necessarily true to say organic farming has failed in Sri Lanka. Sri Lanka sought to introduce organic farming very quickly without the necessary foundation and preparation, so rather than failing the initiative never really had a chance.

Australia’s lesson is that building a successful organic farming sector requires preparation and time, with close collaboration in research and development, linking government and private researchers with farmers.