Hakeem says FTA with China will be a boon for SL

Saturday, 24 October 2015 00:08 - - {{hitsCtrl.values.hits}}

Minister of City Planning and Water Supply Rauff Hakeem

Minister of City Planning and Water Supply Rauff Hakeem this week in Beijing said that the Free Trade Agreement with China would be a boon for Sri Lanka and the new Government looked to the Asian giant as a major source for Foreign Direct Investment (FDI).

He made these remarks when he addressed the China-Sri Lanka Economic Cooperation in Beijing at the inaugural event of Asia Infrastructure Investment Bank.

“The trade relations between China and Sri Lanka are decidedly in favour of China. The Free Trade Agreement between China and Sri Lanka will elevate the bilateral trade between the two countries to a different phase. It is indeed a landmark in our trade relations. Market experts are convinced that it will improve the capacity of Sri Lankan entrepreneurs to access the vast Chinese market. The FTA with China will alter Sri Lanka’s present focus on Western markets.

It will be a great opportunity for Sri Lanka to turn east as well and diversify Sri Lanka’s export base.

“The future of China-Sri Lanka economic links depend on the readiness of both countries to recognise the imperatives of economic interdependence. Sri Lanka needs to carve out its niche in the exponentially growing export market of China.

From the Chinese perspective, Sri Lanka is a pivotal point and an integral location on China’s Silk Road economic belt project and its newly sponsored Asia’s world bank.

“The $ 40 billion Silk Road Economic Belt and the Infrastructure Investment Bank are two projects that Sri Lanka has to participate in. Sri Lanka has already signed the articles of agreement to join the AIIB along with 57 other nations. The new Government of Sri Lanka under President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe is a consensual Government that enjoys the support of the two major political parties. It looks up to China as a major source of FDI in its determined drive to expand its growing economy.”