RIYADH, 9 February — Minister of Finance and National Economy Dr. Ibrahim Al-Assaf has assured Sri Lanka of the Kingdom's support in securing loans from international aid agencies for the purchase of Saudi crude, which accounts for 25 percent of that country's oil imports.
This was disclosed to Arab News in an exclusive interview by Sri Lanka's Minister of Foreign Affairs Lakshman Kadirgamar on the conclusion of his two-day visit to the Kingdom. Sri Lanka's Ambassador Nowfel Saly Jabir and senior embassy officials were also present.
The minister described the Kingdom as "a country with a special position in the Muslim world" and said his country would "nurture these relations" in the future through periodic interaction at various levels.
In the interview, Kadirgamar, who left for Colombo today, spoke about the ushering in of "a new chapter in Saudi-Sri Lankan relations" beginning with the elevation of their diplomatic ties, the finalization of the agreement on setting up a joint economic commission, and the signing of a free trade agreement eliminating import duties.
Some of the topics that were elaborated during the visit were the Kingdom's support to Sri Lanka in combatting terrorism, as well as the promotion of trade and investment between the two countries. The foreign minister said that as a result of the free trade agreement which was effective from last year, Saudi goods exported to his country are exempted from customs duty, thus making Sri Lanka an ideal destination for investors.
Kadirgamar said that during his meeting with Crown Prince Abdullah, deputy premier and commander of the National Guard, inquired about the status of Muslims in Sri Lanka. He explained to the crown prince that Muslims, who constitute eight percent of Sri Lanka's population of 18 million, have four ministers, including a Muslim woman, in the cabinet, besides Muslim MPs.
The foreign minister said his counterpart, Prince Saud Al-Faisal, would issue a policy statement soon that would spell out the Kingdom's stand on international terrorism, which it has condemned in all forms. Prince Saud is expected to visit Colombo at a mutually convenient date to sign the agreement on the joint commission. His last visit was in 1977.
Referring to his talks with Dr. Ibrahim Al-Assaf, Kadirgamar said he explained to the finance minister that Sri Lanka had been supportive of a stable oil price. However, the fluctuating oil prices were having a negative impact on its economy. Civil war-related defense spending now accounts for six percent of Sri Lanka's GDP as opposed to less than one percent before.
Asked if the Kingdom had promised to extend any credit line to help Sri Lanka cushion the impact of the oil prices when they escalate, Kadirgamar replied: " Of course, Saudi Arabia will not extend any direct credit facility. But it will help us wherever we seek credit line."
One possibility being mooted is that the Islamic Development Bank may pitch in with its soft loan program if the Kingdom recommends it. Normally, IDB assistance is confined to Muslim countries alone.
The foreign minister announced that a Saudi businessmen delegation would visit Colombo in the near future to discuss with authorities the setting up of training programs for the Kingdom-bound manpower. Currently, housemaids constitute 60 percent of the 250,000 Sri Lankan workforce in the Kingdom.
