Chinese ventures to assemble buses, cars in Sri Lanka

Ranil WIJAYAPALA in China

GUANGZHOU: The State visit by President Mahinda Rajapaksa in China has opened new doors for the Sri Lankan business community and entrepreneurs to enter into new ventures with Chinese companies, with two Sri Lankan companies signing MoUs to establish new business ventures in Sri Lanka.

The first agreement was signed between the Micro Car Company and the China Bus Company to manufacture double decker buses in Sri Lanka.

Industrial Development Minister Kumara Welgama who is in China along with the President told the Daily News that the new venture will be started within a few months at Micro Car company factory in Polgahawela.

Micro already assembles South Korean maker Ssangyong's Sports Utility Vehicles Kyron X and Rexton II in Sri Lanka, in addition to its own Micro brand vehicles.

"The Chinese Company agreed to manufacture 120 seater double decker buses at a cost of Rs.6 million each," the Minister said.

They will also look at South Asia using Sri Lanka as a gateway to the South Asian market. According to Micro Cars Chief Dr. Lawrence Perera, the opening of the new factory will help generate a large number of job opportunities for Sri Lankans and also provide a solution for the transport problem in the country.

David Pieris Motor Company signed an agreement with Chery Car Company of China to establish a factory in Hambantota within the next few months to manufacture cars.

David Pieris already imports right hand drive Chery QQ model cars on a Completely Built Unit basis.

"The establishment of the factory in Hambantota will be advantageous to the company as it can make use of the infrastructure facilities coming up in Hambantota," the Minister added.

A large number of Chinese investors, businessmen and entrepreneurs enthusiastically participated in the Sri Lanka China, Investment Trade and Tourism Seminar held at Beijing, Shanghai and Guangzhou cities during President Rajapaksa’s visit.

The China Council for the Promotion of International Trade organised these seminars along with the Board of Investment of Sri Lanka and the Sri Lanka Tourist Board.

In addition to the investment promotion seminars, the bilateral discussions the visiting Minister had with various Chinese Government officials also paved the way to bring new investments to Sri Lanka.

Urban Development and Sacred City Development Minister Dinesh Gunawardena told the Daily News that many construction companies have agreed to enter Sri Lanka for urban development projects.

Posts and Telecommunications Minister Rauff Hakeem also told the Daily News that the Chinese Post and Telecommunications Minister during his bilateral discussion agreed to encourage network and equipment suppliers in China to establish factories in Sri Lanka.