23 Chinese firms seek tie-ups in Sri Lanka

Wednesday, 5 March 2014 00:50 - - {{hitsCtrl.values.hits}}

Twenty-three companies from Zhon-gshan, China are seeking business opportunities with Sri Lanka’s private sector with special focus on light industries. The Chinese business delegation led by Zhongshan Municipal People’s Government Deputy Secretary General Cen Hongkai met with local private sector representatives yesterday to exchange details on the investment climate in each other’s countries and have B2B meetings. The delegation comprises of Government officials and representatives of 23 private companies to further strengthen links with Sri Lankan companies. Targeted products and services are chemical, lighting, import and export, manufacturing of home appliances, plastic, trade and logistics, electrical equipment, vacuum engineering, technology and plastics. The Chinese companies were briefed on the investment climate in Sri Lanka and encouraged to take advantage of Free Trade Agreements inked with India and Pakistan that enables duty-free exports from the island. “At present there is US$ 20 million of imports from Zhongshan to Sri Lanka but only about US$ 2 million to exports from Sri Lanka,” Hongkai told the gathering, insisting “great potential” exists for trade development between the two countries. Chinese companies could use Sri Lanka’s workforce for manufacturing, ample raw materials such as for making glass and use cleared land in the former war torn areas of north and east for export of plants and flowers. “The proposed FTA with China, which is expected to be signed later this year, will also provide new opportunities for trade promotion,” Sri Lanka-China Business Council President Navindra Abeysekera said adding that with Chinese technology and expertise Sri Lanka’s glass industry could become world class. Zhongshan is a prefecture-level city in the south of the Pearl River Delta in Guangdong province. Zhongshan trade topped US$ 43 billion in 2013, attracting US$ 12 billion in Foreign Direct Investment. Despite a population of about 3.14 million people it has five international airports, three international ports as well as other infrastructure. Zhongshan enjoys trade cooperation with about 200 countries and over 30 Fortune 500 companies operate there. The proximity of Zhongshan to Hong Kong and Macau is an advantage to its economic development, especially on the manufacturing industries.

SL urged to look at “both sides” of Port City

Chinese Ambassador to Sri Lanka Wu Jianghao urged Sri Lankans to take into account both sides of the Colombo Port city issue and called for local businesses to engage more publicly about their experiences in doing business with Chinese companies. Speaking at an event organised by the Sri Lanka-China Business Council, Wu, speaking through an interpreter, noted that “both sides” of the Colombo Port City issue needed to be considered but stopped short of making any additional statements. However, he did go on to say that the Sri Lanka-China Business Council members who account for 80% of trade between the two countries should publicise their experiences more and encourage the local private sector to reach out to Chinese companies. “Sri Lanka and China have great potential as partners and this must be explored,” he noted, adding that Sri Lanka could move forward significantly in light industries with Chinese partnerships.