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China has contributed almost $10 b to Sri Lanka so far while Sri Lanka’s strategic location is not such a unique advantage to the country, said Chinese Ambassador to Sri LankaYi Xianliangyesterday.
Sri Lankan representatives meanwhile called on Chinese industry to set up here and gain faster access to South and West Asia.
“Sri Lanka being located in the middle of Indian Ocean does not mean there is a special investment advantage. There are other coastal countries in this region at the same time having the same advantages as Sri Lanka. Still China attaches a little more importance to China-Sri Lanka cooperation,” stressed Xianliang, addressing the inauguration event of the first China Product Expo in Colombo yesterday.
The business buyer aimed special exhibition at SLECC is organised by the China International Exhibition Center Group (CIEC), Guangdong Chamber of Commerce of Importers & Exporters (GCCIE), WorldexFiera Milano and supported by the National Chamber of Commerce of Sri Lanka and Ceylon National Chamber of Industries (CNCI). Joining the session were Ministry of Industry and CommerceSecretary T.M.K.B.Thennakoonand Department of Commerce Director General Sonali Wijeratne.
“What is the reasonChina attaches a little more importance to China-Sri Lanka cooperation? Because both countries are indeed friends. Secondly trade and economic cooperation is fundamental for economic relations. Last year China-Lanka trade amounted to $3.2 b. This is a massive bilateral trade increase from six years ago. Also Chinese businesses have invested $2 b in Sri Lanka.”
“The Chinese Government, through the Exim Bank and other banks, contributed more than $6 b to the development of this country. When taken all these as well as other Chinese financial contributions to Sri Lanka over the last 50 years, it totals to about $10 b. This means Chinese financial contributions to Sri Lanka is quite important with positive impacts on the development of this country.
“I visited Sri Lankan harbours and airports and there is rapid development in the country’s infrastructure. I do believe these developments and achievements due to this contribution-and business sectors of both sides too did a lot. On this basis I must express my sincere appreciation for this Exhibition, which is not just a fair but also an FDI opening for Sri Lanka. I do believe business is for people, for development and for the future of both countries. We also fully support bilateral exchange, not unilateral exchange.”
China became the topmost global investor in Sri Lanka by Y2013 and according to BOI data, in 2013 China had 24 investment projects valued at $239 m as cumulative ‘realised’ investment.
“China is Sri Lanka’s second largest product supplier. Bilateral trade between China and Sri Lanka has also been growing steadily. By last year trade with China have almost doubled from 2009 volumes. Also in 2014, our exports to China almost tripled from 2009 levels. According to the Department of Commerce under me, lateststatisticsshowthatChinahascomewithinthefirst20exportdestinationsof Sri Lankanproductsin 2014,” said Minister Bathiudeen.
He added: “In fact, we are pleased to inform you that our exports to China in the first half of this year alone has increased by a strong 20% in comparison to entire exports to China in 2014 which was only $173 million. What is more important is that China also has a big role in our exports. A great amount of raw material imports from China are re-used in Sri Lanka’s exports, especially in its world class apparel manufacturing. It is in this surging trade background that today’s first-ever Chinese trade fair of international standards is opened in Colombo.
“I am given to understand that this is the first-ever Chinese trade fair targeting business buyers by major provinces of China to be held in Colombo. I believe that Sri Lanka is not only a gateway for Chinese trade fairs but a great investment destination for Chinese industries, multinationals and manufacturers who want to strengthen their supply chains that extend to South and West Asia. Today I wish to call Chinese manufacturers to Sri Lanka to partner with us. I appeal to all the members of visiting Chinese delegation here to take a special message to your chambers and businesses. Our special message is that Sri Lanka is not only a South Asian market for China but is a great off-shore assembly hub for Chinese and Far Eastern manufacturers who are aiming for South and West Asia. Today we invite Chinese manufacturers and industries to invest and partner with Sri Lanka, use our strategic location, and obtain faster access to these Asian markets and increase your export revenues.”
Last year, bilateral trade between China and Sri Lanka increased by 16% to $3.5 billion. Even in January to June this year, trade with China totalled $ 1.9 billion; 90% of this was imports from China.
