Sri Lanka to lift the ban on foreign research vessels next year

Sub : IR

Sec: Places in news

Context:

Sri Lanka will allow foreign research vessels to call at its ports starting 2025.
Sri Lanka will not block vessels from specific countries like China, stating the need for uniform rules.
Earlier Sri Lanka blocked two vessels of China- Shi Yan 6 and Yuan Wang 5.

Details:

In January 2024, Sri Lanka banned foreign research vessels after India and the US raised concerns over Chinese vessels’ visits.
Sri Lankan ports have become focal points for strategic interests among global powers.

Key Players and Investments:

China: Announced a $400 million investment in a logistics complex at Colombo Port.
India: Strengthening maritime security cooperation with Sri Lanka, including a Maritime Rescue Coordination Centre (MRCC) and the revival of the Colombo Security Conclave.
U.S.: Development Finance Corporation (DFC) investing $553 million in the West Container Terminal project at Colombo Port.
Japan: Providing Sri Lanka with a vessel equipped with underwater sonar to enhance oceanographic survey capabilities.
Technical Collaboration: The Sri Lanka Ports Authority (SLPA) and the Virginia Ports Authority (VPA) signed a pact for the exchange of expertise and technical collaboration.

What is the Official Creditor Committee (OCC)?

OCC is a group formed to represent the collective interests of creditors during the debt restructuring or bankruptcy process of a debtor, typically a corporation or sovereign entity.
The OCC is often appointed in formal insolvency proceedings, such as those under the jurisdiction of bankruptcy courts, to ensure that the creditors’ interests are protected and that the restructuring plan is fair and equitable.
This term OCC is used more generally to describe any ad-hoc committee formed to represent official creditors during debt restructuring negotiations.
It does not refer to a single, permanent organization but rather to various committees that might be formed for specific cases.

About:

The OCC that has signed a deal with Sri Lanka recently refers to a specific ad-hoc group of official bilateral creditors, often formed to address the debt restructuring needs of a particular country.
It was formed in May 2023 with the aim of simplifying Sri Lanka’s debt negotiations after the country defaulted on its external debt, in the wake of an unprecedented financial crash in 2022.
Members
- The OCC is a platform comprising 17 countries including India and members of the Paris Club such as Japan, that have extended loans to Sri Lanka.

Headquarters

While not a permanent entity with a fixed headquarters, meetings for this OCC would typically be held in Paris, especially if coordinated with the Paris Club, which has its secretariat there.

Role and Function

The OCC’s primary role is to negotiate and coordinate the restructuring of Sri Lanka’s external debt, ensuring a fair and sustainable resolution for the country’s debt crisis.

Colombo Security Conclave (CSC):

The CSC was formed in 2011 as a trilateral maritime security grouping of India, Sri Lanka and the Maldives.
- It welcomed Mauritius as a fourth member at the fifth meeting of national security advisers.
- Bangladesh and Seychelles attended as observers and have been invited to join the group.
Envisaged Goal: The fifth meeting of national security advisers of the CSC identified key areas of cooperation to enhance and strengthen regional security in the following five pillars:
- Maritime Safety and Security
- Countering Terrorism and Radicalization
- Combating Trafficking and Transnational Organized Crime
- Cyber Security, Protection of Critical Infrastructure and Technology
- Humanitarian Assistance and Disaster Relief

Source: TH