Sri Lanka’s potential membership in BRICS and the NDB aligns with its broader strategy of integrating into global trade frameworks. The country has been actively pursuing international trade agreements, including the Regional Comprehensive Economic Partnership, to enhance its economic standing.
Sri Lanka’s Cabinet of Ministers has greenlit a proposal for the country to seek membership in the BRICS organization and to establish a new development bank under its framework, according to Cabinet spokesperson, Minister Bandula Gunawardana.
This move follows a comprehensive report from an officer’s committee that evaluated the proposal’s potential benefits and drawbacks.
The BRICS group, initially formed by Brazil, Russia, India, China, and South Africa, is a significant intergovernmental organization aimed at fostering economic collaboration among emerging markets. The bloc recently expanded its membership to include Iran, Egypt, Ethiopia, and the UAE during its Johannesburg summit in August 2023. This expansion, which has seen BRICS+ accounting for 37.3 per cent of global GDP, has sparked debates regarding its growing international influence.
Minister Gunawardana emphasized the economic benefits of joining BRICS. “By becoming a member of an organization with economic giants such as China, India, and Brazil, and establishing a development bank, Sri Lanka’s businesses will have access to more seed capital,” he stated. This capital infusion could provide significant opportunities for Sri Lankan enterprises and accelerate the country’s economic development.
Sri Lanka’s potential membership in BRICS and the NDB aligns with its broader strategy of integrating into global trade frameworks. The country has been actively pursuing international trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), to enhance its economic standing.
Leveraging NDB resources
The New Development Bank (NDB), established by the BRICS countries in 2015, is designed to support infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs). The bank aims to mobilize resources and provide financial backing for projects that foster economic growth and environmental sustainability. Its role is crucial in bridging the financing gap in these regions.
The NDB’s mandate to fund infrastructure and sustainable projects is expected to provide Sri Lanka with valuable resources. According to Article 2 of the NDB’s Agreement, membership is open to any United Nations member, whether they are borrowing or non-borrowing members, thus making Sri Lanka a suitable candidate.
In a recent briefing to the European Parliament, an EU associated think tank highlighted that while the new members contribute only around 4 per cent to BRICS’ cumulative GDP, their inclusion is more about increasing the group’s global influence and strengthening the voice of developing nations in international organizations such as the United Nations and the World Trade Organization.
As Sri Lanka moves forward with its application, the focus will be on leveraging BRICS membership and NDB resources to foster economic growth and enhance its role on the global stage. The country’s participation in BRICS could mark a significant step towards integrating more deeply into the global economic landscape and addressing its development needs.
