How French President Macron’s visit to Sri Lanka will usher in a new dynamism in Indo-Pacific

French President Emmanuel Macron visited Sri Lanka on 28 July 2023, following his trip to the South Pacific Region. This was a historic visit as it marks the first-ever visit by a French president to Sri Lanka. According to the Sri Lankan Government press release, the main objective of the visit was to enhance and elevate the existing relations between Sri Lanka and France, especially considering the 75th anniversary of the diplomatic ties between the two countries being celebrated this year. However, the purpose of this visit should also be viewed in the context of France’s ‘Indo-Pacific strategy’ adopted in 2018. France’s ‘Indo-Pacific strategy’ France is the only European country that has territory in the Indo-Pacific region. As a result, it has a direct interest in the sustainable development, peace, security and stability of the region. The strategy to protect its interest in the region was outlined by President Macron in 2018 which is based on four pillars including: 1) strong involvement from France in settling regional crises, ensuring the safety of the main shipping routes and in the fight against terrorism, radicalisation and organised crime; 2) strengthening and increasing strategic and global partnerships in the region; 3) a greater role in regional organizations in order to contribute to the development of multilateralism including ASEAN, ADMM+, heads of Asian Coast Guard Agencies Meeting, the Indian Ocean Rim Association (IORA) and the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP); the Pacific Community, the Secretariat of the Pacific Regional Environment Programme (SPREP); and 4) a commitment to promote common goods (climate change, the environment and biodiversity, healthcare, education, digital technology, high-quality infrastructure), in a region that is undergoing rapid demographic, social and urban transition. According to the ‘Indo-Pacific strategy’, France aims to provide solutions to the security, economic, health, climate and environmental challenges faced by the countries in the zone bilaterally and also by supporting increased European Union (EU) involvement in the region under the EU-Asia Connectivity Strategy. France as development partner of Sri Lanka Though the ‘Indo-Pacific strategy’ of France was outlined in 2018, Sri Lanka, one of the most strategically important countries in the region, has been availing assistance from the Agence Française de Development (AFD) since 2005 under the mandate to promote green and inclusive growth in the sectors of water and sanitation, energy and urban development. The engagement between France and Sri Lanka increased further since 2010. Over a period of almost 10 years, the AFD group has committed EUR 626 million to projects, becoming one of the most important bilateral donor partners for Sri Lanka. In line with France’s “Health in Common” initiative, AFD has committed € 346.65 million since 2006 to protect public health through its projects. The AFD Group has also committed € 82.285 million to the energy sector; € 53 million for urban development; and up to € 166.2 million to the agriculture sector in Sri Lanka since 2006. As part of the ongoing commitment of France to support sustainable growth in Sri Lanka, loans are provided to job-creating SMEs. A US$60 million credit line has been allocated to Hatton National Bank PLC to finance loans for small and medium-sized enterprises in Sri Lanka. Sri Lanka in French ‘Indo-Pacific strategy’ Following the adoption of the ‘Indo-Pacific strategy’, France expressed its intention to increase its presence in Sri Lanka. Given Sri Lanka’s geographical and strategic positioning, Sri Lanka is considered an important partner and also an important neighbour due to its geographic proximity to France’s territory in the Indian Ocean La Réunion. France’s intention to increase interaction and engagement with Sri Lanka was made clear during French Foreign Ministry Asia and Oceania Director Thierry Mathou’s visit to Colombo in February 2020. Under the new priority, France aims to consolidate relations with Sri Lanka through trade and investment; tourism; enhanced people-to-people connection, security cooperation and also by opening opportunities for Sri Lanka on the French-owned La Réunion island. Being a member of the European Union, France provides preferential access for Sri Lanka’s exports under the EU GSP+ scheme. Sri Lanka’s export to France in 2021 was US$246.03 million. Total trade between the two countries as per the 2021 report is US$383.46 million. Thus, bilateral trade is in Sri Lanka’s favour. France is the fourth largest creditor to Sri Lanka. Hence, following Brexit, France has offered to become the new gateway for Sri Lanka to the EU. President Macron’s visit to Sri Lanka President Macron’s short visit to Sri Lanka on 28 July can be viewed as part of its ‘Indo-Pacific strategy’. Discussion between President Ranil Wickremesinghe and President Macron during the visit focussed on strengthening cooperation in various sectors, including politics, economics, tourism, climate change, sustainable development, and maritime activities. Several specific areas of cooperation were also identified during the talks, including the establishment of a school for maritime safety and security, the opening of a permanent office for AFD in Sri Lanka, the initiation of high-level diplomatic dialogues, cooperation in the education sector, and the enhancement of efforts to combat human trafficking in the maritime safety and security sector. During one hour and fifteen minutes long interaction, President Macron reaffirmed France’s willingness and commitment to support Sri Lanka in its economic recovery and pledged his country’s assistance in the debt restructuring process. Macron also expressed keen interest in collaborating with Sri Lanka during its upcoming chairmanship of the IORA. In a Twitter post following the discussions, President Macron stated, “Sri Lanka and France are two nations in the Indian Ocean sharing the same goal: an open, inclusive and prosperous Indo-Pacific. In Colombo we confirmed it: Strong as in our 75 years of diplomatic relations, we would open a new era to our partnership.” Importance of France to Sri Lanka As Sri Lanka is going through the worst-ever economic crisis in its history, the government is exploring various options to stabilise, revive and develop the economy. Some of the measures of the Sri Lankan Government include: Making debt sustainable through debt restructuring; bringing fiscal and financial reforms, investment drive, restructuring of the state-owned enterprises and improving the governance and social protection system. In addition to the economic crisis, Sri Lanka is also going through multiple crises ranging from political problems, ethnic issues, health sector crises, excessive brain drain causing lack of skilled manpower, food crisis and so on. To deal with these challenges, the Sri Lankan government has approached bilateral partners and multilateral organisations for assistance. In this context, Sri Lanka can benefit from some of the global initiatives by France in areas such as climate mitigation, global debt restructuring, and matters related to the Indo-Pacific region. During Macron’s visit to Sri Lanka, President Ranil Wickremesinghe conveyed Sri Lanka’s agreement to join the Paris Agenda for the People and the Planet, emphasizing the country’s commitment to global efforts for a sustainable future. President Wickremesinghe showed interest in the Indian Ocean Commission, where France actively participates. France’s role as a Paris Club member and as the fourth largest creditor will be extremely crucial for the successful conclusion of the ongoing negotiation on Sri Lanka’s debt restructuring process. Sri Lankan Government’s ‘ Roadmap for National Transformation’ to revive and develop the economy provides ample room for collaboration with France within the framework of its ‘Indo-Pacific strategy’. Thus, while France is keen to strengthen its relations with Sri Lanka as part of its ‘Indo-Pacific strategy’, Sri Lanka’s multiple crises too have obligated the government to reach out and deepen the ties. Since, unlike the US, India or Japan, France does not have any conflicting interests vis-à-vis China in Sri Lanka, it is unlikely to face any major opposition in realising its strategy to enhance its presence on the island. Hence, given the economic and geostrategic situations in the region, it can be expected that Macron’s visit would usher a new dynamism in Sri Lanka-France bilateral relations.

The writer is an Associate Fellow with the Manohar Parrikar Institute for Defence Studies and Analyses. The views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect FirstPost’s views or the views of the institute.

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