Sri Lanka Development Drivers: The Cooperation with European Union and China

Abstract

The European Union and China have established a deep relationship and the de- mand to expand the cooperation has been felt more strongly. To establish cooperation at a worldwide level will be a good choice. Under this condition, Sri Lanka will be the next place to be the new engine of the Sino-European Union cooperation. Sri Lanka was colonized successively by the Portuguese, the Dutch and the British and during this period the plantation economy developed which has occupied the most important position in the national economy of Sri Lanka for a long time. After independence, Sri Lanka was seeking a driver for its development, thus its attention gradually moved to the textile industry. Its economy still relies heavily on exports which provides for China and the EU the opportunity to develop further their trade with Sri Lanka and to enhance their reciprocal cooperation. After Sri Lanka’s independence, China traded with Sri Lanka and provided assistance while Sri Lanka gave political support to China. Thus, China has the experience to work with Sri Lanka. During the colonial era, European countries had a large effect on the culture of Sri Lanka. Until now many tourist cities are still famous for the fortifications built by the colonial powers and the percentage of English speakers is higher than in many other countries in Asia. Then we have not to forget the chapter of the long ethnic civil war with its high cost in terms of human life and de facto a transfer of resources from development to military expenditure. While in the past the main products exported to the EU were gems and tea, Sri Lanka now has switched to the garment trade, which leads to a sense of closeness not only in culture but also in economy. In the future, if the EU and China could take advantages of each other, Sri Lanka could be the next point of cooperation.