Chinese business delegation here for joint packaging material venture

Swift follow up to President's visit to China :

Shirajiv Sirimane

Business visit: A business delegation from Kunming Import and Export Group (KIEG), China would be in Sri Lanka today to assess the investment potential in Sri Lanka with the private sector. This delegation is visiting Sri Lanka subsequent to the visit of President Mahinda Rajapaksa to China recently and is a follow up on the negotiations made during his tour.

President, Federation of Chambers of Commerce and Industry (FCCISL) Nawaz Rajabdeen who led the high-powered business delegation of 60 members said that the visit was highly successful.

He said that the visiting delegation is looking at setting up mini factories to produce packaging material (particle boards) from paddy husk. "They are looking at entering the Indian market from Sri Lanka exploiting the FTA," he said. In addition this company is also looking at manufacturing photo frames, chip board from paddy husk.

Paddy husk is virtually burnt and this was the reason for them to enter the Lankan market. "The Chinese investor is keen to do this venture as a joint venture and would be looking at rice mill owners in rural areas. "This is a tremendous opportunity for mill owners who are only engaged in milling rice," he said.

The KGET would also be organising a seminar on 'Trade and Economic Cooperation between Sri Lanka and Yunam' and is also looking to promote the Kunming Import and Export Commodities Fair today (21) at Hall A, BMICH from 10.30 a.m.

The event would be held from June 6 to 10 in Kunming. This event is being arranged by Yunam Provincial Department of Commerce and CCPIT Yunam Sub Council. Speaking on the Chinese tour Rajabdeen said that this is the first time that a cross section of businessmen from all regions participated.

"We had representatives from different districts from small and medium business houses.

They had a very good exposure and had a very successful meeting with the Chinese investors arranged by the Chinese Council for Promotion of International Trade (CCPIT.) "President Mahinda Rajapaksa was very keen to give more exposure to small and medium type business delegates for joint venture opportunity."

During the tour the Dongfeng Automobile Co. Ltd, showed keen interest to set up an assembly plant to manufacture a micro vehicle for export to the SAARC region. Sri Lanka is to be used as the hub for exports to take advantage of the FTAD with Pakistan and India.

The Shanghai Machinery and Equipment Corporation will be setting up a manufacturing unit for tools and other connected equipment. Jiangling Motors Group had discussions with a leading motor vehicle importer to set up a joint venture investment in Sri Lanka Beijing. Brilliant Gems and Jewellery showed interest in importing precious stones for their jewellery industry.

Qingdao XinGben Barrow Ltd has a contract to export different types of carts for the construction industry on CKD and later set up a manufacturing unit.

In addition a large number of small and medium type manufacturing industries showed interest in setting up factories to market their products to the SAARC region.