President's China visit the most fruitful ever - Minister Amunugama

Uditha Kumarasinghe

COLOMBO: Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama yesterday described President Mahinda Rajapaksa's recent mission to China as the most successful state visit made by a Sri Lankan Leader to China which helped Sri Lanka to achieve so many fruitful results in the political, military, economic and cultural sectors.

In the field of politics, the President's visit to China was more important to Sri Lanka. During his visit, President could meet and hold bilateral talks with all key dignitaries of the Chinese Government including Chinese President and Prime Minister, the Minister told a media briefing at Galle Face Hotel yesterday.

During all the bilateral talks, key attention was focused on the economic sector of Sri Lanka and to seek Chinese assistance to further develop the country's economic sector. Eight key agreements were signed between Sri Lanka and China.

The President made this official visit to China to commemorate 50 years of bilateral relationship between China and Sri Lanka.

Sri Lanka commenced bilateral ties with China in 1957 due to the brave decision taken by then Prime Minister S. W. R. D. Bandaranaike's Government to establish friendly relationship with socialist countries.

As a result China has become Sri Lanka's most friendly nation, the Minister said. At the special negotiations held between the Chinese President Hu Jintao and President Rajapaksa, the Chinese Government pledged to provide financial assistance to construct the Hambantota Harbour which is estimated to cost US Dollars 450 million.

The representatives of the Chinese Consortium at a special discussion with President also agreed to commence the initial construction work of the Hambantota Harbour within three months.

China also pledged to finance the first phase of the Norochcholai Coal power plant estimated to cost US Dollars 455 million and also to go ahead with the development projects such as the Weeravila International Airport and the Southern Expressway.

The Chinese Government agreed to provide 100 train locomotives and engines to Sri Lanka by September this year.

In addition, China granted 104 scholarships to Sri Lanka. During his visit President Rajapaksa highlighted the importance of "One China Policy."

As a result, China extended its fullest cooperation to safeguard Sri Lanka's territorial integrity and combat terrorism, the Minister said.

"The President's mission was an all out success in relation to the country's economic sector. The President also pointed out the shortcomings of trade activities between two countries.

At present Sri Lanka imports US Dollars one billion worth of goods and material from China.

But Sri Lanka exports only US Dollars 30 million worth goods to China. Therefore there is a huge gap in exports between two countries."

The Minister said the Chinese Government pledged to provide subsidies to Sri Lanka to promote our exports to China. Finance Ministry Secretary Dr. P. B. Jayasundera will fly to China shortly to further discuss this and formulate modalities.

Due to the President's visit, several leading Chinese entrepreneurs signed agreements with Sri Lankan investors to commence joint ventures in Sri Lanka such as assembling buses, motorcars and motorcycles, he said.

According to Minister Amunugama most of the Sri Lankan delegation to China were industrialists. Even more businessmen would have joined us since the Government's policy is to create more opportunities to industrialists to expand their business ventures and allow them to see how a market driven economy in China has given life to that country.

"Through all these endeavours, the Government's intention is to achieve a near 9 per cent economic growth and provide more relief measures to people," the Minister said.