No greater comeback story than the story of Sri Lanka - US Official

COLOMBO (News 1st); US Assistant Secretary of State Donald Lu painted a vivid picture of Sri Lanka's remarkable turnaround during a recent speech, highlighting the country's journey from crisis to stability with the help of international partners.

"Americans love a comeback story, and in the region I work on there is no greater comeback story than the story of Sri Lanka," said Donald Lu, Assistant Secretary of State for South and Central Asian Affairs.

Lu vividly described the dire situation Sri Lanka faced just a year and a half ago, marked by protests, shortages, and political turmoil. This stark contrast to the current state of stable currency, food and fuel prices, and secured debt restructuring showcased the country's impressive strides.

The Assistant Secretary underscored the crucial role of international collaboration in Sri Lanka's recovery. He emphasized the initial humanitarian assistance provided by India, along with USAID's vital agricultural support. Critically, the debt restructuring led by Japan, France, and India, with pressure on China to participate, paved the way for IMF funding and economic stability.

"The currency is stable food, and fuel prices are stable, they've gotten reassurances on their debt restructuring and the IMF money is flowing. How did they do that? That's the question I wanted to explore with us a little today. The answer I would offer is they did it with a Little Help from friends, and this Indo-Pacific strategy is based on the premise that the United States and like-minded partners are going to try to offer a better proposition," he added.

"On the debt side, if you follow Sri Lanka at all, you know they have a really heavy debt burden. The Creditor committee led by Japan, France ,and India negotiated for months to find a formula to allow Sri Lanka to restructure its debt in a sustainable way, and that formula put pressure on the Chinese to go along with those debt reassurances, that opened up IMF funding and the changes that you see in the economy today," he elaborated.

Lu went beyond traditional aid, highlighting the $553 million loan from the US Development Finance Corporation to the Colombo Port West Container Terminal. This private sector investment directly benefits the Sri Lankan people and promotes sustainable economic growth, said the Assistant Secretary of State for South and Central Asian Affairs.

" Lastly I would say part of what Sri Lanka really needs is all of us to be there to help support its sovereignty. One of the ways that we are doing that from the US government is by providing Patrol boats to the Sri Lankan military, and we are also this year set to deliver a King Air aircraft that will help Sri Lanka to Patrol its Coastal Waters," he noted about US support for Sri Lanka's sovereignty.

Donald Lu concluded by reiterating Sri Lanka's "amazing sort of historic comeback" achieved through collective international support. This story, he stated, embodies the essence of the Indo-Pacific strategy: offering a better proposition through partnership and collaboration.