Sri Lanka, Saudi Arabia to boost trade, investments ties

Saudi Ambassador Khalid Hamoud Alkahtani, in an interview with the Daily Mirror, shared his views on bilateral ties as the two countries mark  50 years of bilateral relations. 

 

• Two countries mark 50th anniversary of diplomatic relations
• Number of employment opportunities for Sri Lankans to rise in Saudi ArabiaSaudi Ambassador Khalid Hamoud Alkahtani, in an interview with the Daily Mirror, shared his views on bilateral ties as the two countries mark  50 years of bilateral relations. 

Excerpts: 

Q:How have bilateral ties evolved over the years?
Diplomatic relations between Saudi Arabia and Sri Lanka were established in 1974. Sri Lanka opened its Embassy in Jeddah in 1983 and later relocated to Riyadh in 1985. From 1977 to 1995, the Kingdom’s Embassy in New Delhi oversaw bilateral relations between the two nations, until Saudi Arabia opened its Embassy in Sri Lanka. The relationship between the Kingdom of Saudi Arabia and Sri Lanka is founded on mutual respect and cooperation across various fields. This year, 2024, marks the 50th anniversary of diplomatic relations between the two countries, which have seen significant growth in numerous areas. The recent high-level visits have played an important role in further strengthening ties, along with mutual support in international forums. Several agreements and MoUs have been signed, with the most recent being the MoU on the Promotion of Direct Investment, signed in April 2024. 

Q: What are those agreements signed between the two countries?

The Air Transport Agreement signed on 8th June 1991, the General Cooperation Agreement in the fields of economy, commerce, investment, science, technology, culture, youth and sports signed on 17th December 2003,       the Agreement for the Recruitment of Domestic Workers signed on 13th January 2014, the Double Tax Avoidance Agreement signed in January 2023,    MoU on Political Consultations signed on 21st May 2023 and the MoU on Promotion of Direct Investment, signed in April 2024. 

Several agreements and memorandums of understanding (MoUs) are currently under review between the two sides, covering areas such as trade, investment, judicial cooperation, security and environmental matters. 

Q: What is the outcome of recent official visits? 

The official visits between the two countries have significantly contributed to strengthening bilateral relations. Since the establishment of diplomatic relations between the two countries, senior officials from both countries have exchanged official visits, the most recent of which was during the past two years. Notable among them was the visit of His Highness Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs of Saudi Arabia, to Sri Lanka on March 14, 2022, during which he met with the Former President, Former Prime Minister, and Former Minister of Foreign Affairs of Sri Lanka. Additionally,  Waleed bin Abdulkarim Al Khuraiji, Vice Minister of Foreign Affairs visited Sri Lanka in October 2023, followed by the visit of His Excellency Faisal Fadel Al-Ibrahim, Minister of Economy and Planning, in November 2023, and the visit of His Excellency Dr. Abdullah bin Muhammad bin Ibrahim Al-Sheikh, Speaker of the Shura Council of Saudi Arabia, in September 2019.

From the Sri Lankan side, key visits included that of   Priyankara Jayaratne, Former State Minister of Promotion of Foreign Employment and Market Diversification to Saudi Arabia from March 19-24, 2022, and   Tharaka Balasuriya, Former State Minister of Regional Cooperation on March 19, 2022. Additionally, Naseer Ahamed, Former Minister of Environment, visited on August 28, 2022, and Manusha Nanayakkara, Former Minister of Labor and Foreign Employment, visited from November 8-12, 2022.   Ali Sabry, Former Minister of Foreign Affairs, made multiple visits to the Kingdom, including from January 22-27, 2023, and from April 27-29, 2024, during which he held discussions with senior officials, including the Saudi Minister of Foreign Affairs.   Tharaka Balasuriya also led a delegation to the Joint Committee meeting in Riyadh from May 21-22, 2023. Additionally, the formation of a Parliamentary Friendship Committee between the two countries has further strengthened ties. 

Q: What is the latest outcome of the joint committee meetings between the two countries?

The Saudi-Sri Lanka Joint Committee was established under the General Cooperation Agreement signed between the two countries in 2003. The committee held its first session from May 21-22, 2023, in Riyadh. The Saudi delegation was led by His Excellency Dr. Abdullah Nasser Abu Thnain, Deputy Minister of Human Resources and Social Development, while the Sri Lankan delegation was headed by  Tharaka Balasuriya, Former State Minister of Foreign Affairs. During the meeting, both sides agreed to collaborate in several areas, including the economy, trade, investment, labour, environment, education, culture, sports, agriculture, and humanitarian work. 

In addition to the committee discussions, a meeting between Saudi and Sri Lankan businessmen took place on the sidelines to explore private sector cooperation. The Embassy is actively coordinating with the relevant Sri Lankan authorities to address the topics discussed during the committee meeting. I am confident that this committee has opened new avenues for cooperation between the two countries across various sectors. 

Q: What are the areas in which Saudi Arabia has cooperated with Sri Lanka? 

Saudi Arabia’s assistance to Sri Lanka is diverse and continuous.   Saudi Arabia has provided assistance to the tune of approximately USD 455 million to implement over 15 development projects in education, irrigation, agriculture and road networks, including the current ongoing projects, the establishment of Medical Faculty at the University of Sabragamuwa, the development of the Wayamba University township and the “Kurinchakerni” Bridge project. The Kingdom also provided financial support to construct 500 housing units in “Norachcholai” in the Eastern province of Sri Lanka to distribute among those affected by the Tsunami disaster, in addition to granting a number of Sri Lankan students free scholarships in Saudi universities, where the number of graduates reached more than 450 students. The King Salman Center for Relief and Humanitarian Aid has also implemented (18) projects, including shelter, food and non-food items, food security, support and coordination of humanitarian operations, health and charitable works, at a cost of more than USD15 million to date. It is worth noting that the King Salman Center for Relief and Humanitarian Aid is planning to implement a free medical campaign titled “Combat against blindness in Sri Lanka” in Kattankudy and Walasmulla  next month. 

Q: What is your view on  Saudi Arabia’s ‘Vision 2030’?  Can you highlight the key projects that have been completed or are currently underway in Saudi Arabia? 

With the support and patronage of the Custodian of the Two Holy Mosques, the Kingdom’s ‘Vision 2030’ was launched on 25th April 2016. It is the vision of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, for the future of the Kingdom, which seeks to invest in the strength that God has blessed us with, such as a distinguished strategic location, a pioneering investment power, and Arab and Islamic depth. The leadership pays great attention to this and harnesses all capabilities to achieve ambitions. The Kingdom’s ‘Vision 2030’ is a strategic framework designed by the Kingdom’s leadership to reduce dependence on oil and diversify the national economy. It aims to promote a vibrant and prosperous economic society, an ambitious nation, and a prosperous economy. Several programs have been designed to achieve the Kingdom’s Vision 2030, namely the Financial Sector Development Programme, the Financial Sustainability Program, the Health Sector Transformation Programme, the Housing Programme, the Human Capacity Development Programme, the National Industries and Logistics Services Development Programme, the National Transformation Programme, the Hajj Pilgrims Service Programme, the Privatisation Programme, the Public Investment Fund Programme, and the Quality of Life Program. In light of this vision, a large number of projects are being implemented, the most important of which are King Salman Park, NEOM, The Line, and The New Square, the Green Saudi Arabia Initiative, the Green Middle East Initiative, the Diriyah Gate Project, the Qiddiya Project, the Red Sea Project, etc., and thanks to God and then thanks to the efforts made by the government of Saudi Arabia, these initiatives are on the right track, and have contributed to enhancing the GDP, as the Kingdom recorded the highest historical level of contribution of non-oil activities to the real GDP at 50 percent  for the past year 2023. 

Q: Are there more job opportunities for Sri Lankans with the mega development projects underway in the Kingdom?

Currently, around 200,000 Sri Lankan workers are employed across various sectors in the Kingdom. With the large-scale development projects in progress, we expect this number to rise, particularly in the construction, healthcare, and hospitality sectors. A Technical Committee, consisting of representatives from the Ministry of Human Resources and Social Development of Saudi Arabia and the Ministry of Labor and Foreign Employment of Sri Lanka, holds regular meetings to coordinate the recruitment of Sri Lankan workers. 
 

Q: What is the outcome of your meeting with the new President of Sri Lanka?

I had the honor of meeting President Anura Kumara Dissanayake last week. Our meeting focused on strengthening bilateral relations between the two countries. I conveyed the congratulatory messages from the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud, King of the Kingdom of Saudi Arabia and His Royal Highness Mohammed bin Salman bin Abdulaziz Al-Saud, Crown Prince, Prime Minister of the Kingdom of Saudi Arabia to His Excellency the President, on the occasion of his victory in the presidential elections and swearing in as President of the Republic of Sri Lanka, wishing him success and further progress and prosperity for the friendly people of Sri Lanka. His Excellency thanked the generous leadership of Saudi Arabia and asked me to convey his greetings to the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince and Prime Minister of Saudi Arabia and his wishes for further progress and prosperity for the Kingdom and its people.

His Excellency touched on the recent developments in the Middle East, expressing Sri Lanka’s concern over the escalating situation and its potential impact, while emphasising the country’s desire to help de-escalate the conflict and support international peace efforts. I informed His Excellency that Saudi Arabia is actively engaged in diplomatic efforts to halt Israeli military operations and bring an end to conflicts in the region. Saudi Arabia has been hosting numerous summits and engaging with both international and regional stakeholders to curb the escalation. The undeniable truth is that the security and stability of the Middle East hinges on swiftly achieving a just and lasting solution to the Palestinian issue, in line with international resolutions and the Arab Peace Initiative. This would ensure the Palestinian people’s right to establish an independent state based on the 1967 borders, with East Jerusalem as its capital.

His Excellency expressed his strong desire to strengthen bilateral relations and enhance trade and investment cooperation between the two countries. I mentioned to His Excellency that bilateral relations between the Kingdom and Sri Lanka have developed in several areas, and that the signing of a general agreement for cooperation in the economic, trade, investment, scientific, artistic, cultural, youth and sports fields in 2003 contributed to the formation of a joint committee between the two countries. The committee held its first meeting in Riyadh from 21-22 May 2023 with the aim of strengthening cooperation between the two countries in those areas, and that implementing the outcomes of the committee’s minutes will raise the level of trade and investment cooperation between the two countries. I requested His Excellency to provide us with the regulations and by-laws related to trade and investment. His Excellency stated that the government is currently working on formulating regulations related to investment, and that a committee has been formed that includes officials from the Sri Lanka Investment Development Authority to study the issue of investment in Sri Lanka. The Embassy will be provided with a copy of these regulations once they are issued.

The  President was briefed on the development projects in Sri Lanka funded by the Saudi Fund for Development, along with the humanitarian initiatives provided by the Kingdom through the King Salman Humanitarian Aid and Relief Center. His Excellency expressed gratitude to the Kingdom’s leadership for the generous aid and humanitarian support extended to Sri Lanka, particularly acknowledging the Kingdom’s assistance during the country’s economic crisis.