Seminar showcases business opportunities with China’s Hangzhou for Sri Lanka

By Shannon Jayawardena

A seminar on business opportunities with Hangzhou China held in Colombo last week unveiled many investment prospects for both Hangzhou and Sri Lanka while further strengthening bilateral ties.

Minister of Science, Special Assignments, Technology, Research, Skills Development and Vocational Training and Kandyan Heritage Dr. Sarath Amunugama stated: “We all know that Hangzhou is one of the most beautiful cities in China and certainly one of the most beautiful cities in the whole world. China and Sri Lanka have engaged in many joint projects out of which the most important project is of course the development of the Hambantota harbour. Already the results are there. It has become a major port of Galle for ships in the Indian Ocean and there is greater investment now in order to expand the facilities of the Hambantota harbour.”

Minister Amunugama added that what is most important for the Chinese investors is that the country will be opening a large export processing zone in the vicinity of the harbour which will be around 4,000 hectare land. The government of China is also expecting to have over 250 industries locating their enterprises in the zone.

Mayor of Colombo Rosy Senanayake noted: “We serve almost 600 residents and there is a migrant flow of 1.5 million. So on a daily basis, we are talking up to 2 million population that circulates and resides in the financial capital of Sri Lanka. I strongly believe that the port city is going to be a state of the art, smart and the best of the best in Asia and I know when China undertakes to do something nothing is short of anything. It’s going to be a job of excellence.”

Senanayake also highlighted the exciting features of the Port city which is to hold convention facilities of a minimum of 5,000 people from the marina to retail, to the service sector, to hospitality, to real estate and so forth.  The country is now looking at going into public-private partnership to develop the hospitality industry, making Colombo a hub for tourists to have a stopover. 

Hangzhou Vice Mayor Xie Shuangcheng said: “Sri Lanka and China have enjoyed a long time relation and even 800 years ago during the period of Polonnaruwa we had relations. Hangzhou is a much modernised city in China and has various big companies like Alibaba. Imports and exports are increasing very rapidly and we must work hard to achieve our one-belt one-road initiative which is one of our concepts for the future.”

Hangzhou is a very commercialised city with a rich and developed private sector economy. Among the top 500 private companies of China, 50 are based in Hangzhou out of which 120 Fortune companies have also invested in the city. 

Chinese Investment Promotion Sector Head Vipula Jayasinghe noted: “Sri Lanka is one nation which is in the concept of the one-belt one-road initiative. In South Asia there are eight countries out of which Sri Lanka seems to be very small but it is located in a very important and strategic location. Sri Lanka is a centre in South Asia for travelling, import and export sectors. 

Hangzhou has several key industries that hold great investment opportunities such as e-commerce, ICT, bio-pharmaceutical, modern equipment manufacturing, culture and creation, financial service, tourism and leisure, textiles and apparel, food and beverage processing, internet of things, big data, AI, energy saving and new energy. These industries are viewed as being highly competitive in the Chinese economy. 

Hangzhou Xihu District Deputy Mayor Chen Wei stated: “This is a very beautiful, eco-friendly place. There are some very pretty lakes including the West Lake and others. It is also the 14th of the top 100 Chinese cities in 2016. It has a great potential for development. We have very important cities in this areas well. Hangzhou provides good opportunities for foreign investment because we have the talent and skills. It is a modernised place with so many facilities. So you can not only invest but also enjoy the place as well.” 

In June 2011 and June 2014, the West Lake Cultural Landscape of Hangzhou and the Grand Canal were inscribed on the UNESCO’s World Heritage List. The city also is home to two national level scenery zones and natural reservation zones, five national forest parks, one national level tourism and holiday resort and 15 national key cultural relic reservation sites. Board of Investors Director (BOI) General Duminda Ariyasinghe said: “When a lot of us think of Hangzhou, we think of Jack Ma and I think he is as popular in Sri Lanka as he is in China. Likewise what Alibaba has done from the high-tech sector and all the different start-ups that have developed in China, is an inspiration to all.”

Sri Lanka is very much a country that is on the up. Since the civil conflict ended, the entire focus has been driven towards the country’s economic development. What the present government has done with the BOI is making sure that is it as easy as possible for someone to start an investment here in the country he emphasised on. 

Ceylon Chamber of Commerce Chairman Rajendra Theagarajah noted: “China is recognised as a very important trading and business partner. I think Sri Lanka is very plugged in the centre of the belt rather than the road. What we see today from delegations from Hangzhou gives us a very good opportunity to identify partnerships, joint ventures and alliances.”

Pix by Upul Abayasekara