In May this year, the Parliament of Sri Lanka has passed a big law.
Senior American diplomat Julie Chung, nominated by President Joe Biden as the US Ambassador to Sri Lanka, said that America needs to be a strategically important place in the middle of the Indian Ocean. There is a need to forge a constructive relationship with the island nation located at.
Foreign Service officer Chung told members of the Senate Foreign Relations Committee that Sri Lanka is located in the middle of the Indian Ocean and in a strategically important place. Its important ports, with access to global sea routes and trade routes, play an important role in building a free and open Indo-Pacific.
Support of companies operating in Sri Lanka
“This statement reinforces the need for the US to build constructive relations with the island nation, including Sri Lanka’s civil society, the private sector and the Sri Lankan people,” Chung said. “We must also support American companies doing business in Sri Lanka and use the tools (of the United States) with the Development Finance Corporation and the Export-Import Bank to protect them from forced lending and forced lending,” he said without naming any country. provide alternatives to opaque contracts.
China is one of the largest investors in Sri Lanka’s various infrastructure projects, but the investment has been criticized locally and internationally, and there is growing concern that China has entrapped Sri Lanka in a debt trap. Sri Lanka’s erstwhile Maithripala Sirisena government leased the Hambantota port for 99 years in 2017 to a state-run Chinese company due to a $1.2 billion loan.
Sri Lanka has passed a big law
The Parliament of Sri Lanka has passed the Port City Economic Commission Bill on 20 May this year. With the implementation of this new law, the port city area built with the financial help of China will be exempted from some national laws and special provisions made for this will be applicable here. Local media reports said that the laws of the Investment Board, Urban Development Authority and Municipal Corporation of Sri Lanka will not apply in the Special Economic Zone. The government led by Sri Lankan President Gotabaya Rajapaksa and his brother Mahinda Rajapaksa had expressed hope that the new law would attract much-needed foreign investment.
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