Press Release The Pathfinder Foundation,

The Pathfinder Foundation, in collaboration with the Heritage Foundation (USA), hosted a joint briefing session titled Prospects for US-Sri Lanka Relations: Impact of the Second Trump Administration.” The event took place as a webinar, attracting over 100 pre-registered attendees from the government, academia, civil society, think tanks, and the development and corporate sectors, among others.

Interaction between the two foundations dates back a decade, and they have come together once again to hold this discussion on a topic of much interest to Sri Lanka and the Indian Ocean region. The Pathfinder Foundation, established in 2008 by Milinda Moragoda, is an independent, non-partisan research and advocacy think-tank. Today, the Foundation remains at the forefront of policy reform, playing a catalytic role as an advocate for economic, social and political development and strategic and security issues that affect Sri Lanka and the South Asian region. The Heritage Foundation is an American conservative think tank based in Washington, D.C. Founded in 1973, it played a leading role in the conservative movement during the 1980s, during the presidency of Ronald Reagan. Heritage’s world-renowned experts—deeply experienced in business, government, the military, nonprofits, academia, and communications—spend time developing innovative solutions to the issues America faces. They also engage with the international community to promote freedom, peace, and trade that benefits the US and the world.

Speaking at the event, several experts from the Heritage Foundation expressed their views on the Trump Administration’s policies toward South Asia. Diana Roth, Director of the Center for Energy, Climate, and Environment, the Herbert and Joyce Morgan Fellow in Energy and Environmental Policy at The Heritage Foundation, spoke on Energy Policy. She has also held senior roles in senior roles in the White House under Presidents Reagan, George H.W. Bush, and George W. Bush. She presented a case against renewables and justified the US’s inclination towards oil and gas instead, which is available in abundance in the US, inexpensive, and generates more jobs within the country.

Mike Gonzalez, who concentrates on critical race theory, identity politics, diversity, multiculturalism, assimilation, nationalism, and foreign policy overall and worked in President George W. Bush’s administration serving in the State Department’s European Bureau, expressed his views on US Politics. He stressed that the new administration intends to change the very nature of government, which is currently in disarray with many cultural, racial, transparency and bureaucratic issues at the forefront.

US Trade and Economic Policy was the area of focus for Eric Hontz, who leads Accountable Investment at the Center for International Private Enterprise (CIPE). He emphasized the need to restructure or rebuild new institutions in a free-market-driven world where all actors did not always follow the rules. The new administration is keen to work with Chambers and associations towards what he called a ‘regulatory guillotine.” Another important aspect would be the blending of economic policy and national security policy. As for Sri Lanka, he mentioned opportunities to work with the US in biotech for agriculture to reduce crop failure. The trade deficit, too, is an area that should be addressed, he opined.

The crucial topic of US’s South Asia Policy was addressed by Jeff Smith, the Director of The Heritage Foundation’s Asian Studies Center and formerly served as the Director of Asian Security Programs at the American Foreign Policy Council. He briefly examined PM Modi’s recent visit to the States and the new US administration’s strong commitment to the QUAD, which is crucial for the South Asian region since there is an Indian Ocean component to the QUAD. Fairness and reciprocal treatment in trade, opportunities for investment in the US, and the establishment of profitable and free markets in the world were also highlighted.

The final presentation on US-China Policy was done by Steve Yates, a Senior Research Fellow for China and National Security at the Heritage’s Asian Studies Center. He also served in the White House as Deputy Assistant to Vice President Dick Cheney for National Security Affairs from 2001 through 2005. He stressed that the new administration had prepared itself in detail to set the stage for a significant power shift and reset the US order with more capabilities. He noted that Trump 2.0 is not about ‘isolationism’ but ‘internationalism’.

Following the thought-provoking presentations by the US scholars, comments on the subjects discussed were made by Prof. Rohan Samarajiva, Founding Chair and CEO of LIRNEasia, Amb. (Retd.) Ravinatha Aryasinha, Executive Director of Lakshman Kadirgamar Institute, Dr. Dayaratna Silva, Executive Director of Pathfinder Foundation, and Admiral (Prof.) Jayanath Colombage, Distinguished Fellow of Pathfinder Foundation and former Foreign Secretary. 

The Sri Lankan commentators representing the Pathfinder Foundation admitted that profound changes are occurring in the US and its relationship with allies in Europe and elsewhere.  On trade, it was highlighted that Sri Lanka’s experience is similar to the US, while it has a favourable trade balance with the US, the country is also facing adverse trade balances with several other countries.  Several opportunities for considerable US investment in energy and port development have failed due to circumstances beyond its control. While Sri Lanka enjoys a favourable trade balance in real terms, that figure is minuscule compared to the adverse trade balances the US has with many countries.  However, they agreed that there are ways to address this issue.  Concerning China’s influence in the region, it was pointed out that the infrastructure development needs of Asia require an app. 1.7 trillion US Dollars per annum, and apart from China, which had invested hundreds of billions to promote its Belt and Road Initiative, only Japan has proposed an investment programme of 70 billion dollars. 

The event ended with a Q&A session and final remarks by James Carafano, Senior Counsellor of the Heritage Foundation, and Bernard Goonetilleke, Chairman of Pathfinder Foundation.