Press Release: The Pathfinder Foundation

The Pathfinder Foundation welcomed a delegation from the Asia New Zealand Foundation Leadership Network during its visit to Sri Lanka. The meeting was attended by H.E. David Pine, High Commissioner of New Zealand to Sri Lanka, Mr Milinda Moragoda, Founder of the Pathfinder Foundation, along with the Foundation’s Directors and staff. The engagement also gathered several young Sri Lankan leaders for networking and discussion on areas of mutual interest.

Bernard Goonetilleke, Chairman of the Pathfinder Foundation and Ms Adele Mason of the Asia New Zealand Foundation, delivered opening remarks. The program focused on three main areas: Managing the geopolitics of trade and strategic options for small economies; Sri Lanka’s recovery policies following the economic crisis; and Regional and maritime security in the Indo-Pacific.

The opening presentation by Dr. Dayaratna Silva, Executive Director of Pathfinder, examined how global trade dynamics are being reshaped by shifting geopolitical power balances. It was noted that trade and investment decisions, once driven by economic efficiency, are now increasingly influenced by strategic and political considerations. The speaker highlighted that for small and open economies such as Sri Lanka and New Zealand, maintaining neutrality and diversification is crucial in a fragmented global trading system. Trade with all, align with none, was emphasised as a prudent approach for small states seeking resilience amidst major power rivalries. The discussion underscored the importance of understanding geopolitical risk indices and developing strategic responses to safeguard national interests.

The second presentation by Dr R.H.S. Samaratunga, Distinguished Fellow of the Pathfinder Foundation, focused on Sri Lanka’s economic recovery trajectory following the 2022 economic crisis. The presentation traced the origins of the crisis to chronic fiscal and current account deficits, monetary expansion, structural inefficiencies, and policy missteps, culminating in a shortage of foreign reserves and an eventual sovereign default.

The speaker outlined the government’s firm engagement with the International Monetary Fund (IMF) and the introduction of a four-year Extended Fund Facility (EFF) programme built around six pillars: fiscal consolidation and institutional strengthening; debt restructuring; enhanced social protection; governance and anti-corruption reforms; safeguarding financial stability; and building foreign reserves and resilience. He noted that key legislative reforms had been enacted, including a new Central Bank Act, Public Financial Management Act, Debt Management Act, 2030 Economic Transformation Act, and a comprehensive Anti-Corruption Act, with results that have been promising. However, he highlighted that fiscal discipline and improved governance remain crucial to sustaining this recovery.

The final presentation by Maj. Gen. (Retd.) T. S. Sallay focused on the evolving regional security landscape, emphasising maritime challenges in the Indo-Pacific. The speaker observed that the region has become the centre of global strategic competition, driven by the escalating U.S.–China rivalry, territorial disputes, and the emergence of new minilateral security frameworks such as QUAD and AUKUS. For Sri Lanka, situated at a key maritime crossroads, these developments have direct consequences for national security, economic stability, and regional cooperation. With over 60,000 vessels passing close to its shores each year, maritime security remains vital for protecting trade, fisheries, and the blue economy. 

Non-traditional threats such as illegal fishing, drug trafficking, cyberattacks, and climate-related risks were also recognised as emerging priorities. The presentation highlighted Sri Lanka’s active participation in regional mechanisms, including IORA, IONS, the Colombo Security Conclave, and the Bay of Bengal Maritime Dialogue, organised annually by the Pathfinder Foundation. To strengthen regional resilience, the speaker proposed closer cooperation between Sri Lanka and New Zealand by leveraging strengths in governance, research, and sustainable maritime practices. The Pathfinder Foundation, a non-partisan, non-profit organisation dedicated to research and advocacy, has previously engaged with the Asia New Zealand Foundation and the New Zealand High Commission in 2023.

It was observed that there is significant potential to enhance New Zealand-Sri Lanka bilateral cooperation in areas such as higher education and skills development, agriculture, dairy and food security technologies, renewable energy and climate-resilient development, maritime cooperation and Indian Ocean security, tourism, aviation, cultural exchanges, and digital technology and innovation ecosystems.

The briefing session provided the New Zealand delegation with an opportunity to understand the ground situation in Sri Lanka, particularly the recovery following the 2022 economic and political crisis. Their visit and the briefing delivered by the Pathfinder Foundation will aid  the next generation of New Zealanders in fostering a better understanding of bilateral relations and promoting closer ties between the two countries.