Chinese investment flow profusely

Lumbini Edirisinghe

Three Chinese companies have signed contracts exceeding Rs. 50 million with Sri Lankan companies to commence six joint ventures in Sri Lanka.

Liang Wentao

‘We are willing to work with Sri Lankan counterparts, as we have long standing diplomatic relations, said Deputy Director General of Department of Asian Affairs, Ministry of Commerce, The People’s Republic of China, Liang Wentao. Sri Lanka has a very favourable business environment for investments. “This is very impressive,” Wentao told Daily News Business.

“During this visit, Chinese enterprises will negotiate and meet Sri Lankan enterprises, and will buy some goods such as coir, tea and other sectors. The estimated contract will exceed US $ 15 million.

“In the future, the Chinese Government will continue to take active measures to encourage Chinese enterprises to expand imports to promote the sound development of bilateral trade relations between China and Sri Lanka.

From January to August in 2008, the newly-signed amount of contracted engineering totalled US $ 0.1 billion.

Sino Chem, China Agri Development Group, China Texu Corporation and China Hengtian Group are the four recent Chinese companies who signed agreements. The local counterparts were, Heyleys Exports Limited, Staseen Exports Ltd, Global Trade Ltd, Tea and Teas, Aroma Traders, Mead Lee Trading Co. (Pvt) Ltd.

In recent years, bilateral trade has increased fast and reached US$ 1.04 billion, in 2007, up by 23 per cent compared with the previous year. From January to August in 2008, the bilateral trade volume totalled US $ 1.04 billion, increase by 16.7 per cent.

Economic cooperation of both sides has made breakthrough with the cumulative amount of contracted engineering and labour service cooperation reached US $ 2.6 billion, and accomplished turnover amount to US $ 1.15 billion at the end of August, 2008.