RIYADH: Sri Lanka’s Foreign Minister Ali Sabri has held talks with ministers and senior officials in Saudi Arabia, as the crisis-hit island nation seeks to boost cooperation with the Kingdom and other Gulf countries.
Sabri met with his Saudi counterpart Prince Faisal bin Farhan, Secretary-General of the Organization of Islamic Cooperation Hsin Brahim Taha, Secretary-General of the Gulf Cooperation Council Nayef Falah M. Al-Hajraf and CEO of the Saudi Fund for Development Sultan Al-Hajraf. Marshad, as well as officials from the Islamic Development Bank.
Sabri said that his visit to the Kingdom was “successful and it will further strengthen and strengthen the bilateral ties between our two countries as we see a lot of positive vibes that have been put into our relations.”
Talks between the two foreign ministers included enhancement of bilateral ties, increased investment with Sri Lanka as a gateway to South Asia, and employment for Sri Lankans in the Kingdom.
highLight
Sri Lankan Foreign Affairs Minister Ali Sabri signed a double tax avoidance agreement with the state’s Zakat, Tax and Customs authority to promote trade and investment. Sri Lanka is said to be facing its worst economic crisis since its independence in 1948.
“The Kingdom has identified Sri Lanka as a very important geographical location, so there are investment opportunities in the renewable energy, petroleum and hospitality industries,” Sabri said.
“We are interested in receiving Saudi investment in the renewable energy sector for development, energy security and making Sri Lanka a regional energy hub.”
There were also discussions on resuming airline services between Saudi Arabia and Sri Lanka after their suspension during the pandemic.
To enhance trade and investment ties between the two countries, the visiting minister signed a “Double Tax Avoidance Agreement with the Zakat and Income Tax Authority here” to prevent financial evasion on income.
Sri Lanka is facing its worst economic crisis since independence in 1948, with the government grappling with lack of foreign earnings, inflation and recession.
The Sri Lankan minister thanked the Kingdom for its help in debt restructuring at the International Monetary Fund and the Paris Club.
The Paris Club of creditor nations has proposed a 10-year debt moratorium on Sri Lankan debt and 15 years of debt restructuring as a formula for solving the island nation’s currency crisis.
Sri Lanka is also in discussions with the IMF to secure a $2.9 billion bailout considered vital to getting its economy back on track.
Sabri highlighted Saudi Arabia and Sri Lanka’s long-standing ties and the former’s support in international fora.
“Sri Lanka and Saudi Arabia have been traditional friends for a long time. To strengthen bilateral relations, especially in multilateral fora – the United Nations and other agencies – we have to support each other,” he said.
“They (Saudis) are supporting us when we have been unfairly cornered by some powers without any reason. They have stood by us time and again. So we need to strengthen that relationship.”
Sabri and Al-Marshad discussed development issues of common interest, and the Sri Lankan minister appreciated the efforts towards infrastructure development in Sri Lanka through SFD projects.
The minister’s meeting with Al-Hajraf focused on relations between Sri Lanka and the GCC.
“GCC is very important. We are looking at signing a framework agreement with GCC, we want to conclude it as soon as possible,” Sabri said.
On his discussions with Taha and the OIC observer status, Sabri said: “They are exploring the possibility of observer status, but we have not taken a decision yet. Traditionally we have had good relations.”
Sabri also reassured Taha about the condition of the Muslim community in Sri Lanka.