SRI LANKA FOREIGN POLICY RELATIONS

WITH USA: J R JAYEWARDENE PERIOD –

1977 TO 1988

Master of Arts in international Relations 2019/2020

Student Name : Shyami Jayawickrama

Registration number : MAIR/2019/42
Contents
Introduction ...................................................................................................................................... 2
PRESIDENT J R JAYEWARDENE (1977-1988) ....................................................................................... 3
US FOREIGN POLICY: A SRI LANKAN PERSPECTIVE .............................................................................. 3
SRI LANKA FOREIGN POLICY RELATIONS WITH USA: J R JAYAWARDENE TIME PERIOD – 1977 TO 1988
.......................................................................................................................................................... 4
Achievements during the President J R Jayewardene Era Relations with USA..................................... 8
Conclusion......................................................................................................................................... 9
Introduction

Foreign policy is a key component of a state which represents the nature of its relations with
the world. Regime changes in a particular state are always have an impact on the foreign
policy and it changes the nature of it.

Foreign policy of a country plays a key role in conducting cordial relations in international
arena. It always symbolizes their relations with the power bloc in the existing world political
sphere. Some countries may aligned with the United States or some may aligned with Soviet
Russia and some may aligned with each powers in the world while been neutral in their
relations. When it comes to the context of Sri Lanka, the foreign policy of Sri Lanka always
tended to be clear and specific.

In the system of sovereign states, individual states interact with other states and international
organizations to protect and promote their national interests. As the issues and scope of the
interests of different classes of states vary, so do the character and patterns of their
interactions to preserve and promote them. Unlike the super powers whose national interests
encompass the entire sovereign states system, the small states have a relatively limited range
of interests as well as a relatively limited sphere of foreign policy activities.

As a small state, Sri Lanka has a relatively small agenda of interests in the international arena
and the sphere of its foreign policy activities is quite restricted in comparison to those of the
super powers, or regional powers.

Interactions of Sri Lanka to realize its national interests to a great extent depended upon the
perceptions and world views of its ruling elites, which in its case are its heads of governments
and their close associates. Although the foreign policy makers have enjoyed considerable
freedom in taking initiatives in the making and conduct of foreign policy, their freedom is
subject to the constraints imposed by the domestic and international determinants of its
foreign policy. Furthermore, the political party to which the leader belongs has much
influence in shaping his foreign policy perceptions. It will not be out of place to state that the
world views of the principal foreign policy makers are rooted in the ideology of their parties.
In the different time periods Sri Lanka maintain different diplomatic or cultural links with
world arena according to the national interest. That can be categorized as:

 Pro-western attitude
 Relations with Communist countries,
 Relation with Western Countries
 Relations with communist and socialist countries
 Relations with India

PRESIDENT J R JAYEWARDENE (1977-1988)

J.R. Jayewardene, in full Junius Richard Jayewardene, The son of a Supreme Court judge,
Jayewardene graduated from Ceylon Law College in Colombo in 1932 and practiced as a
barrister until 1943. He joined the Ceylon National Congress party and in 1943 won election
to the State Council. In 1948, when Ceylon won independence from British rule,
Jayewardene became minister of finance in the post-independence government formed by the
moderate United National Party (UNP). He became the party’s second-ranking leader under
D.S. Senanayake and then under his son, Dudley Senanayake, and held such high posts as
minister of finance (1948–53, 1960), minister of food and agriculture (1953–56), and minister
of state (1965–70). Upon the death of the younger Senanayake in 1973, Jayewardene became
the leader of the UNP and in 1977 led his party to a sweeping victory at the polls.. He retired
in 1989 after his second term as president.

US FOREIGN POLICY: A SRI LANKAN PERSPECTIVE

After the cold–war, there is no more rivalry between the superpowers with the emergence of
America as the sole superpower. America is holding ultra-distinct position in all international
forums including the UN and plays a significant role in world Affairs. With the escalation of
superpower rivalry in the Indian Ocean in the 1970s amidst the rising ties of economic
nationalism in the third world, Sri Lanka began to widen the horizon of its foreign policy
perceptions. This becomes crystal clear from the policy approaches followed in the pre-1977
era and the post- 1977 era. Sri Lanka, Particularly during the early years of 1970s, perceived
American as a threat to its security and the economic interests because of the US naval entry
to the Indian Ocean and the establishment of UK-USA joint military logistics facility in
Diego Garcia secondly because of the general conviction that American oriented economic
policies affect the national agitations of economic liberation.

American response towards Sri Lanka’s Foreign Policy in the early 1970s was thus non-
cooperative and unfriendly. The end result was that Sri Lanka was under tremendous
economic pressure. In post 1977era Sri Lanka followed a policy of friendly and cordial
relations. With the change of governments from centre –left to the centre right in 1977,
Jayewardene perceived America as a source of strength for the political Security and also as
potential sources for economic recovery of the country. The most significant interaction
between USA and Sri- Lanka in the post 1977 era was on economic cooperation.

Despite the best of relations Sri Lanka had maintained with USA and its friendly Western
Governments and financial in situations, Sri Lanka made not much of satisfactory progress in
the economic front. US foreign policy at the turn of the century needs readjustments to suit its
own global and regional interests but with highest consideration for the agitations expressed
by the third world since early 1970s.in this connection, USA instead of a world policemen,
needs to act as a mediator and facilitator and custodian of world political agenda at the turn of
the century.

SRI LANKA FOREIGN POLICY RELATIONS WITH USA: J R

JAYAWARDENE TIME PERIOD – 1977 TO 1988

The post 1977 era signifies very friendly and cordial relations between the two countries.
Making a reversal of the anti-American tilt followed by the previous government (1970-
1977), Under J.R. Jayewardene, the economic content of foreign policy received due
recognition. A.C.S. Hameed, the Minister of Foreign Affairs speaking in Parliament in
December 1977 openly stated that:

“Our Foreign Policy, I must say, is being given a new orientation. We are a poor country;
we are struggling for survival. Long economic stagnation has made it impossible for the
people of this country to have a fair and square meal. From stagnation to rapid
development, it is a difficult process. Therefore, I seek to make our foreign policy an
effective instrument of economic development.”
1) Jayewardene re-establish traditional links with the USA.

Jayewardene took many initiatives to re-establish traditional links with the USA.for instance
Jayewardene invited to the suspended American institution Such as Asia Foundation and
Peace Corps to reintroduce their programs in Sri Lanka. Further, several missions including
image building mission under special envoys were sent to Washington and the sri lanks ‘Aid
consortium countries with a view to brief on the changed political –economic agenda of the
new government. The success achieved by such missions and the accommodation of
srilankan government in the USA. and other western capitals and financial institutions was
the prime factor which led the Jayewardene government to introduce the open economic –
policy and to become the first south Asian nation to go for free- market economy.

2) Jayewardene maintained friendly manner to the American Naval presence in the

Indian Ocean

Making further reference to the American policy, of the previous government which was
highly critical of American naval presence in the Indian Ocean, Jayewardene raised no
objections to the presence of American fleets in the Indian Ocean or to the joint UK-USA
activities in Diego- Garcia. Moreover Jayewardene allowed American naval vessels to visit
Trincomalee for refuelling facilities.

3) American high profile Military visits of Sri Lanka

Allowed the US armed personnel to make goodwill visits to the country. Accordingly the US
Admiral of the Western command of the US Navy,Admiral Eugenep.foster made a five day
good will visit to sri Lanka.in 1978, which was closely observed by india. The suspicion
arose from the visit of the US Secretary for Defence, Casper Weinberger, to the island in
October, 1983.127 Two months after the visit by Weinberger, the US ambassador at large
Vernon Walters came to Sri Lanka. This visit was followed by two more important visits by
high ranking American officials, Congressman Joseph Addabo, Chairman of the House
Defence Appropriation Committee came in January 1984, and Deputy Assistant Secretary of
State, Howard B. Shaffer in February, 1984. Jayawardene in terms of his defence outlook
maintained the view that there should be a complete demilitarization as advocated by Mrs
Bandaranaike.
4) Jayewardene took over the stewardship of the NAM

The stand taken by jayawardene went favour of United States but not favours of India. Apart
from such steps jayawardene who took over the stewardship of the NAM made no radical
departures and was extra cautious in projecting sri lankas image not as ‘radical’ but as
‘moderate’ one.

5) Renewing and further strengthening the ties between Sri Lanka and USA

Above all, Jayewardene government took measures to resolve the compensation issue of the
American companies that was dragging since the nationalization of American investments
under the prevous government. Such gestures on the part of sri lanka in renewing and further
strengthen the ties between the two countries, Led to greater ineraction in sphere of economic
relations.

6) Introduced new economic Policy market

A Major shift in foreign policy occurred when Jayewardene government introduced a new
economic policy package which was characterized by market oriented, outward looking
growth strategy and shift of resources from consumption and welfare oriented programs
towards production and employment oriented oriented investments activities. The main
agenda of the economic policy package included mahaweli Development Scheme and the
establishment of an Export Promotion Zone in Katunayake within the greater Colombo
economic commission (GCEC). both these major schemes received the backing from the
USA and other western governments including the American funded IMF and the World
Bank. Because of the tremendous economic assistance received from the free economy
countries, Jayewardene government could launch the accelerated Mahaweli Diversion
programme which was telescoped into 5 years against the 30 year programme suggested
earlier.

7) Increase Investment relations between USA

A significant development of industrial exports occurred because of the investment climate

created with the establishment of export promotion zone with the investment guarantees
assued under section 157 of the 1978 constitution, investment from the united states began to
pour into the free trade zone in the industrial, technological and service sectors. Duty free
imports for the( FTZ ) , Tax holidays, exemption of income tax , withholding tax, dividends
and other concessions were instrumental in attracting reputed multinationals from the USA
for both individual and joint ventures in srilanka. Most of the investments came from western
sources including USA and were invested within and outside the FTZ. Investments within the
FTZ handled by the GCEC amounted to Rs.2323million for the period from 1978 to 1982
while the investments outside the FTZ handled by foreign investment Advisory committee
(FIAC) amounted to 1892million for the same period. The economic boost that began to
manifest in the sphere of trade, aid and investment relations with the USA and other Western
countries and financial institutions generally speaks of the success of the open economic
policy of Jayewardene not only it was followed by his successors irrespective of the political
regime they represent but also served as a model for other south Asian countries to follow.

8) Trading partner in imports and exports

The first five years of Jayewardene regime proved a greater economic interaction in the
bilateral relations between the two countries. For instance the direction of trade during 1978 -
1982 as reported in official central bank reports, indicated the emergence of the USA as the
major trading partner in import export trade, expect for the exports to the UK in the year
1978. Sri Lankan exports to the USA, which included tea, rubber, coconut, and garments,
amounted to Rs. 926.4 Million in 1978.Exports to the USA showed a sharp increase in the
consecutive years amounting to RS. 1586.6 million In 1979, RS. 1925.3 million In 1980, RS.
2809.6 million (1981) and RS. 2984.7 million (1982) respectively. American imports to Sri
Lanka for the respective period amounted Rs.1202.7 million, Rs.1211.0 Million, 1492
Million, 2488 Million and 5600.4 million. Bilateral trade relations was declining trends in
traditional exports and increasing trends in traditional exports and increasing trends in
industrial exports.
Achievements during the President J R Jayewardene Era Relations
with USA

1. Sri Lanka’s development programmes and secures the stability of the island.

As regards the US, the nationalization of oil, banking and insurance sectors of the economy
by the previous United Front government of Sirimavo Bandaranaike had touched sensitive
areas of American interests. But situation improved after J.R. Jayewardene assumed power.
The US was appreciative of the liberal, pro-West economic programme of the UNP
government. It was keen to assist Sri Lanka’s development programmes and secure the
stability of the island. This was evident from the selection of Sri Lanka as one of the 11 states
to benefit from the US special assistance to developing countries.123 Aid from US flowed
both through international agencies such as the UNDP and the World Bank as well as
bilaterally. In 1981 the US granted $ 110 million economic aid to assist the development
programme of the UNP government.124 With regard to the Mahaweli Development Project,
the US provided Sri Lanka with aid worth Rs.100 million for setting up of five national parks
in the project area.125 In this regard Jean Kirkpatrick, the US ambassador to the UN
remarked, “I realize the strong determination of the government and the people of Sri Lanka
to force vigorously with their 33 development programme, particularly those which will
enrich and improve the quality of life of the less fortunate in rural areas and the cities .

2. Strategic Implications with USA

Following the 1983 riots, Sri Lanka looked forward towards the USA for military assistance.
It was expected that the USA would involve in the ethnic problem in exchange for facilities
in Trincomalee. During the same period Sri Lanka hastened to conclude certain deals with the
USA which carried strategic implications.

3. New Agreements with USA

After the visits of US high ranked officials. In December 1983, the UNP government leased
out to the Bermuda based oil company Oreleum the oil storage complex in the strategic port
of Trincomalee.130 In the same month another agreement was signed between Sri Lanka and
the USA which permitted the Voice of America (VOA) to install a transmitter of 2,500 K.W.
capacity in Sri Lankan territory making it the largest radio station outside the US.
4. Aid and assistance from Britain and America. Britain donated 1000 million pounds
to finance the Victoria Dam Project of the Mahaweli Development Scheme

The foreign policy of the UNP government headed by J.R. Jayewardene was turned towards
the West mainly towards the UK and the USA. It obtained economic aid and assistance from
Britain and America. Britain donated 1000 million pounds to finance the Victoria Dam
Project of the Mahaweli Development Scheme. This is the largest British aid given to any
developing country. This act on the part of Britain was indicating her willingness to enter to
closer economic ties with the Jayewardene government.

5. promote exchange of personnel between the two countries in the field of science and
technology

All these developments raised the suspicion that the USA would militarily involve itself in
favour of the Sri Lankan government in the ethnic conflict besieging the island. However
later developments belied such perceptions. President Jayewardene visited the USA in June,
1984 and agreement was signed to conduct an oceanographic survey of the coastline of the
island and to promote exchange of personnel between the two countries in the field of science
and technology.

Conclusion

Since the independence, Sri Lanka was free to follow its own foreign policy. According to
the party in power, the characteristics of the foreign policy of a country tended to be change.
Thus foreign policy of J.R. Jayewardene was inward-looking. It was geared to promote
economic development and growth. In this context, he liberalized the economy and undertook
major projects such as the Accelerated Mahaweli Development Programme, Free Trade Zone
and Greater Colombo Development Scheme. To finance his economic agenda, he looked
towards the West like his UNP predecessors. However, his relations with the Soviet Union
and China were good because of the changed global strategic environment especially the
shedding of revolutionary fervours by the communist states. Although western aid and
assistance was forthcoming to rejuvenate the Sri Lankan economy, the West refused to come
to the assistance of the UNP government to tackle the ethnic crisis which threatened the
stability and integrity of the island.
References

Books

Yatanoor, C. (1997). Sri Lankas foreign policy under the presidentship of J.R. Jayewardene.
Delhi: Kalinga Publications.

M., D. S. K., & Wriggins, W. H. (1988). J.R. Jayewardene of Sri Lanka: a political
biography, volume 1: 1906-1956. London: Anthony Blond/Quartet.

Abhinav Publications. (1988). Foreign policy and legislatures: an analysis of seven

parliaments. New Delhi.

Karunadasa, W. M. (1997). Sri Lanka and non-alignment: a study of foreign policy from
1948 to 1982. Dehiwela: Image Lanka Publishers.

News papers
de silva, bandu. (2015, December 2). Foreign Policy: No One Way Street. Foreign Policy: No
One Way Street. Retrieved from http://www.island.lk/2005/12/02/features1.html
Web

Colombo Telegraph. (2013, July 20). One Blunder After The Other In Foreign Policy.
Retrieved from https://www.colombotelegraph.com/index.php/one-blunder-after-the-other-
in-foreign-policy/