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USA Fears Loss of Sri Lanka

30.07.2010
 
Pages: 123
USA Fears Loss of Sri Lanka

by John Stanton

“Sri Lanka has been a friend and democratic partner of the United States since gaining independence in 1948 and has supported U.S. military operations overseas such as during the first Gulf War. Commercial contacts go back to 1787, when New England sailors first anchored in Sri Lanka’s harbors to engage in trade. Sri Lanka is strategically located at the nexus of maritime trading routes connecting Europe and the Middle East to China and the rest of Asia. It is directly in the middle of the ‘‘Old World,’’ where an estimated half of the world’s container ships transit the Indian Ocean. American interests in the region include securing energy resources from the Persian Gulf and maintaining the free flow of trade in the Indian Ocean.” Senate Foreign Relations Committee Report, 2009.

Most Americans are not familiar with the long history of relations that Sri Lanka and the USA have together. In fact, most—and to be fair, a good deal of the world’s population—couldn’t pinpoint the country on a map even though Sri Lanka is one of the top trade partners of the USA.

Still, some may know Sri Lanka through the name Mathangi Arulpragasam, better known as M.I.A., a globally recognized musician/singer/artist. Many will remember that science fiction giant Arthur C. Clarke (2001 Space Odyssey) made his home in Sri Lanka. Perhaps a handful will know that Sri Lanka is a Cricket powerhouse.

Others may remember the 2004 Tsunami that destroyed large portions of the Sri Lankan coastline wiping out thousands of lives and leaving many more thousands internally displaced. Some will be familiar with the Sri Lankan’s military defeat of the LTTE—Tamil Tigers—in 2009 after roughly 26 years of conflict. The victory came with a burdensome price tag: thousands killed, nearly 460,000 Tamils/noncombatants confined in holding camps/displaced, and the horrible legacy that is one million landmines that dot former warfighting zones.

So what do they do in Sri Lanka besides producing excellent tea and Cricket players? Here is the industry/services breakdown for 2009:

Sri Lanka’s natural resource base consists of limestone, graphite, mineral sands, gems and phosphate.

The agricultural sector is 12.8 percent of GDP and includes rice, tea, rubber, coconut, and spices. The service industry is 58 percent with key sectors being tourism, wholesale and retail trade, transport, telecom and financial services. The industrial sector comprises 29.2% of GDP and includes garments and leather goods, rubber products, food processing, chemicals, refined petroleum, gems and jewelry, non-metallic mineral-based products and construction.

Major exports (amounting to $7 billion US) in 2009 were garments, tea, rubber products, jewelry and gems, refined petroleum, and coconuts. The main markets for those products were the USA ($ 1.54 billion US), the United Kingdom, India and Italy.

Major suppliers to the Sri Lankan economy were India, Singapore, Hong Kong, China, Iran, Malaysia, Japan, U.K., U.A.E., Belgium, Indonesia, South Korea and the USA (totaling $9.6 billion US of which $283 million was with the USA).

USA-India-China: Sri Lanka as Geopolitical/Economic Battlespace

For US policy makers and military planners, Sri Lanka has now become a top geopolitical priority. A sense of urgency is driving the grand brains in the White House and Pentagon to figure out how “not to lose Sri Lanka.” In short, that means an answer to the question, “How can we use Sri Lanka to further US national security interests in the Indian Ocean?”

“Friendly” economic competition (and the concomitant struggle for resources, markets, jobs) between the USA and China/India will inevitably move to military conflict at some future date. Why? There simply are not enough energy stores in the world to meet the needs of the three nations which, combined, make up 41 percent of the world’s population. And this excludes Indonesia and Brazil whom together make up just over 6 percent of the world’s population. The five nations make up 47 percent of the world’s population and their hunger for energy, raw materials, food, construction materials, “the better life”, is insatiable. All are pre-positioning for economic security which, of course, is an element of national security.

In State and Corporate governing circles within the five countries (USA, India, China, Indonesia, Brazil), there is a far graver threat to be dealt with: the prospect of restive populations revolting as their job prospects darken, social programs are cut, income inequality increases, and health/pension benefits become more restricted, even eliminated. Meanwhile, up above, the losing classes watch as their nation’s stock exchanges operate as though it’s business-as-usual. In this volatile environment, internal mass dissent/boycotts are, arguably, the number one threat to each nation’s security.

So where does Sri Lanka fit in?

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