China: Partner in economic development

President Chandrika Bandaranaike Kumaratunga's State visit to China exemplifies the excellent ties between the two countries. Trade and business are pivotal issues that will be discussed during her landmark visit.

Indeed, no country can hope to exist without trading with China. It is well on its way to becoming the world's biggest economy. It is a huge market for consumer goods and conversely, a major exporter of numerous goods ranging from needles to cars.

China's remarkable growth rate during the last decade has propelled it to the ranks of Asian economic giants. Its fusion of socialism and market mechanisms have been successful to the extent of being virtually copied by other socialist countries such as Vietnam.

Although many in this country advocate unabashed capitalism, there are valuable economic lessons to be learned from China on how both socialism and capitalism can be combined for benefitting the masses.

China has also not forgotten her obligations to the developing world, particularly countries such as Sri Lanka. It maintains a healthy level of Official Development Assistance in the form of both grants and loans. China has made its presence felt in Sri Lanka through a number of mega projects and agreements are to be signed for more such projects during the President's visit.

Chief among these is the agreement on the commissioning of the Norochcholai coal power project that will generate 320 MW, providing an answer to the country's energy crisis. This has been a long overdue project, affected by political bickering and vested interests of a few.

The Government deserves plaudits for going ahead with the project with courage and conviction. We must be grateful to China for coming forward to assist its construction.

Among the other agreements to be discussed during the visit are the Hambantota oil tank project and phosphate mining, the Colombo-Katunayake Express railway and the Kotte sewerage project.

The Colombo-Katunayake link is another long felt need, as Sri Lanka does not have a reliable public transport network connecting the City and the main international airport.

It is especially significant that the President will be personally meeting the heads of the main Chinese contractors undertaking these projects. This will reaffirm the Government's commitment to foreign investment and reassure them that the projects have her fullest backing.

Her address at the Investment, Tourism and Trade Promotion seminar organised by the China Centre for Promotion of International Trade (CCPIT) will be eagerly awaited by the Chinese business community tomorrow.

This will be an ideal opportunity to apprise Chinese investors on Sri Lanka's liberal investment climate. The Sri Lankan business community delegates accompanying the President also have a good opportunity to forge lasting relationships with their Chinese counterparts.

In the long term, China and Sri Lanka must explore the possibility of formulating a free trade agreement or a comprehensive economic partnership. Sri Lanka has pioneered free trade agreements in the region and is looking to ink more such agreements with countries in Asia and beyond.

Another very important aspect is people to people contact. More Chinese tourists are coming to Sri Lanka than ever before and the commencement of direct flights between Beijing and Colombo has also been a blessing. Obviously, the friendship and economic ties between China and Sri Lanka will grow steadily in the years to come.