New era of Sino-Lanka cooperation

From Rodney Martinesz in Beijing

President Chandrika Bandaranaike Kumaratunga expressed confidence that the landmark agreements signed yesterday would mark a new era of economic and political cooperation between Sri Lanka and China.

Responding to the welcome address by Chinese President Hu Jintao at the Great Hall of the People where she was given a rousing reception, President Kumaratunga stressed that the eight agreements would certainly take economic partnership between the two countries to a higher level.

She noted that for the first time Sri Lanka and China have entered into joint ventures. "For instance the Hambantota Port which you are planning to construct is the first major port constructed by any Government since Independence," she said.

Similarly the Phosphate Mining and Fertiliser Project is also the first time mining will be done in a scientific way, the President said.

She also mentioned the discussions held in the spheres of tourism where the focus was centred on various avenues to increase the inflow of tourists both ways, attractive travel packages and other areas of cooperation.

She said her Government has prioritised several areas of activity in the social and economic spheres. The President said her Government gave the Free Market economy a new face which entailed extensive programmes of poverty alleviation while meeting the demands of a modern world.

"This meant we had to accelerate infrastructure like ports, power supply, telephones and social infrastructure like health and education."

"When we took over 12 years ago the country's infrastructure was in a poor state. We did not have a single express highway and only 30 per cent of the people in the rural areas had telephone facilities". Therefore she as President had to embark on an accelerated infrastructure development programme.

The President told the audience that today over 60 per cent of Sri Lanka's rural population had electricity and there was a five-fold increase in telephone subscribers.

The Government was developing express highways and undertaking major development in the ports and airport.

However, they had lot more to do and it was in this respect that the agreements assume great significance vis-a-vis major infrastructure development which her Government has prioritised, the President said.

"This is why I say that relations between our two counties will reach a new plane."

She thanked the Chinese President for his leadership and guidance to help make this a reality.

"I take this opportunity to express my deep gratitude on behalf of my Government and the people of Sri Lanka for the assistance very generously received without any conditions from China". President Kumaratunga began by recalling the common religious cultural and trade ties between the two nations dating back centuries.

She also thanked the Chinese leader for his views and sentiments expressed on a wide range of issues concerning women and for their cause and for bestowing her, the honour of delivering the keynote address of the Beijing Women's Conference.

She also said Sri Lanka would give serious consideration to China's concerns on certain UN reforms adding she looked forward to meeting him at the world body in a couple of weeks.

Chinese President Jintao at the outset said he trusted that President Kumaratunga's visit will further promote and foster the traditional friendship and bilateral ties enjoyed by the two nations over a considerable time.

He recalled that the President and her family had been longstanding friends of China which greatly contributed to strong bilateral ties which China appreciated.

The Chinese leader reiterated his Government's commitment to help Sri Lanka in her efforts towards protecting the country's sovereignty and territorial integrity.

Work on Norachcholai to begin by October

From Rodney Martinesz in Beijing

Sri Lanka yesterday signed eight bilateral agreements with China to the tune of US$ 800 million representing one third of the annual donor aid to the country.

This included the agreement on the much awaited Norachcholai coal power project. This is seen as a landmark agreement impacting positively on Sri Lanka's development.

The MoU was signed on behalf of Sri Lanka by Ceylon Electricity Board General Manager Ranjit Fonseka and Xia Biao representing the China National Machinery & Equipment Import & Export Corporation (CMEC).

The project is scheduled to start by October this year and will initially add 300 MW to the National Grid providing a ready answer to the country's energy crisis.

President Chandrika Bandaranaike Kumaratunga stated that the Norachcholai power project was the single largest power project undertaken in Sri Lanka.

"It is a joint venture between the Sri Lankan and Chinese Governments and will provide a solution to the country's long running energy crisis," the President said.

The power plant will be built in three phases of 300 MW capacities each upto the final plant capacity of 900 MW. The project site has been selected by CEB at Norachcholai where a feasibility study has been carried out and completed.

The CMEC has proposed to design-build-transfer the coal power plant which proposal has been considered advantageous to the Sri Lankan Government by the CEB.

Fonseka said they expect to commence the first stage of Norachcholai by the end of 2005. While the first phase of the 300 MW project will be commissioned in 2009, the second and third stages will get underway in 2011 and 2012.It is anticipated that under a credit loan scheme, the overall electricity charges will come down by as much as 13 per cent in 2010, 22 per cent in 2011 and 32 per cent in 2012.

The move will also obviate the country's dependency on expensive diesel fuels.Another key MoU signed yesterday relates to Tourism promotion between China National Tourism Administration (CNTA) and Sri Lanka's Tourism Ministry that would facilitate various aspects of tourism between the two countries.

The other agreements signed are:

. Cultural Cooperation between the Government of the People's Republic of China and the Democratic Socialist Republic of Sri Lanka.

. Economic and Technic Cooperation between China and Sri Lanka.

. Establishment of consulate in Shanghai between the Foreign Ministries of China and Sri Lanka.

. Joint-Establishment of Confucius Institute in Sri Lanka between the Ministry of Education of the People's Republic of China and the Education Ministry of Sri Lanka.

. Utilisation of the Preferential Buyer's Credit from the Government of the People's Republic of China to the Government of Sri Lanka between the Export-Import Bank of China and Sri Lanka's Finance Ministry.

Earlier President Kumaratunga met Chinese Finance Minister Jin Renqing, Air China President Li Jia Xiang, Exim Bank President Li Ruo Gu, President China Metallurgical Construction Corporation Xu Xiang Chun (Kotte Sewerage Project), Sun Li Tang Vice Chairman, China Shandong, International Economic & Technical Corporation (Colombo-Katunayake expressway) and President, NORINCO.

President's visit enhances Sino-Lanka ties

Several bilateral agreements in the fields of finance, tourism and culture were signed yesterday in the Chinese capital between Sri Lanka and the People's Republic of China. President Chandrika Bandaranaike Kumaratunga and Chinese President Hu Jintao witnessed the signing ceremony.

Ministers Anura Bandaranaike and Mahinda Yapa Abeywardena were the signatories for Sri Lanka, a press release from the Office of the President said.

Sri Lanka's Ambassador in China Nihal Rodrigo and Treasury Secretary Dr. P. B. Jayasundera also signed MoUs on behalf of the Government.

The National Machinery & Equipment Import-Export Corporation of China and the Ceylon Electricity Board of Sri Lanka (CEB) signed an agreement to establish the Puttalam Coal Power Plant. General Manager Ranjit Fonseka signed on behalf of the Sri Lankan Government.

Diplomatic notes were also exchanged for the establishment of a Sri Lankan Consulate in Shanghai.