The US Senate has approved the nomination of veteran US diplomat Julie Chung to be the next Ambassador to Sri Lanka.

Confirmed by voice vote: Exec. Cal. #517 Julie Chung, a Career Member of the Senior Foreign Service, Class of Minister Counselor, to be Ambassador of the United States to the Democratic Socialist Republic of Sri Lanka.

— Senate Cloakroom (@SenateCloakroom) December 18, 2021

Chung's previous posting was as the Acting Assistant Secretary in the Bureau of Western Hemisphere Affairs and she is replacing Alaina B. Teplitz as Ambassador to Sri Lanka. Chung has served in a variety of roles including as Principal Deputy Assistant Secretary and serving for roles in Japan, Vietnam, Thailand, Cambodia, Colombia, and Iraq.

Engaging with the diaspora

Chung has previously stressed the need for the US to encourage "justice, accountability, and reconciliation" and highlighted the importance of engaging with "many voices of the Sri Lankan diaspora in the United States". This appointment follows high-profile meetings between the Tamil National Alliance (TNA), Global Tamil Forum, and the US State Department. MA Sumanthiran, the spokesperson for the TNA, also stressed in an interview with the Tamil Guardian the need for  “greater involvement by the US, broadly speaking, in the Tamil affairs in Sri Lanka”.

Sri Lanka's Foreign Minister G.L. Peiris however, has maintained his refusal to engage with Tamil diaspora groups which the government had proscribed as terrorist organisations. Earlier this year, Sri Lanka imposed a wide-ranging proscription on hundreds of individuals and several Tamil diaspora organisations which have been campaigning on human rights issues.

Chung has stressed the need to develop connections beyond the government with key stakeholders and civil society members on the ground.

"I think we can go a long way at doing more public diplomacy and engaging with all stakeholders on the ground beyond the government. With civil society, with journalists, and with those who feel affected by such projects and the future" she has noted. 

Read more here: 'Committed and consistent in support of human rights' - Julie Chung nominee US Ambassador for Sri Lanka

Economic recovery

Commenting on Sri Lanka's dire economic straits Chung has also emphasised the need for Sri Lanka to turn to the International Monetary Fund (IMF) to "consider steps for debt restructuring".

Last week Fitch Rating agency further downgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to "CC", from "CCC".

“The downgrade reflects our view of an increased probability of a default event in coming months in light of Sri Lanka's worsening external liquidity position, underscored by a drop in foreign-exchange reserves set against high external debt payments and limited financing inflows. The severity of financial stress is illustrated by elevated government-bond yields and downward pressure on the currency” Fitch's report reads.

Despite this, the Governor of Sri Lanka's Central Bank and government ministers have rejected calls to turn to the IMF decrying the move as a surrendering of Sri Lanka's sovereignty.

Strategic importance

Chung is a noted critic of Chinese debt diplomacy have previously stated

“We see their [China's] investment hurting the environment, violating local labour laws. We’ve brought these issues to light with the region and raised it with our government counterparts”.

Read more here: US nominee ambassador to Sri Lanka is critical of Chinese influence

She has further emphasised the importance of Sri Lanka stating that "its critical ports with access to global maritime lanes and trading routes play a pivotal role in a free and open Indo-Pacific architecture".