While his aspiration to join the group of BRICS did not succeed, the Sri Lanka took an important step by becoming a member of the New Development Bank (NDB)the financial institution created by BRICS to support infrastructure and sustainable development projects.
At the recent BRICS summit held in RussiaSri Lanka had initially expressed its ambition to join the group of major emerging economies. Despite Colombo’s diplomatic efforts, marked by the mobilization of support among current members, the BRICS have decided not to expand their circle at this stage. However, Sri Lanka’s parallel application to join the NDB received a favorable opinion.
Established in 2015, the NDB aims to provide alternative financing to emerging markets and developing countries. With this accession, Sri Lanka joins countries like Bangladesh, which, although not members of BRICS, work closely with the bank.
This decision marks a pragmatic direction on the part of the Sri Lankan government, which sees in the NDB an opportunity to strengthen its access to international financial resources. The Minister of Foreign Affairs, Aruni Wijewardenawho led the Sri Lankan delegation to the summit, stressed the importance of this membership in diversifying the country’s financing options.
Before finalizing this integration, Sri Lanka will have to conduct internal consultations, particularly at the level of the ministerial cabinet and the Ministry of Finance, to assess the economic and strategic implications of this approach.
Membership in the NDB provides Sri Lanka with access to a range of financing for infrastructure and sustainable development projects, critical to supporting its economic recovery from recent financial challenges. By collaborating with the NDB, the country also hopes to strengthen its economic partnerships with the BRICS and their allies, while positioning its economy in a more global framework.
