CIFIT - prestigious int’l investment exposition

China International Fair for Investment and Trade (CIFIT) provides a window for an extensive dialogue on global economic issues, trends of international capital flows, new investment priorities and emerging industries offering participants the most authoritative and up to date information on investment in China and beyond, said Prime Minister D M Jayaratne delivering the key note speech at the inauguration of CIFIT 2011 forum held in Xiamen. During the past five years, under the leadership of President Mahinda Rajapaksa, we have developed unprecedented strong bilateral relations not only with the central government, but also with the provincial governments of China. The relations have been consolidated by regular high level exchange of visits between the two countries, said Prime Minister D M Jayaratne

Following is the text of the speech:

It gives me immense pleasure to be present here today at the inauguration of the China International Fair for Investment and Trade (CIFIT) 2011 in the beautiful City of Xiamen and to address you all at this important Forum. At the outset, I would like to extend on behalf of my delegation and on my own behalf our deepest appreciation to the provincial government of Fujian and the organizers of this event for their generous hospitality extended to us during our stay in Xiamen.

I also wish to congratulate the provincial government of Fujian, and the organizers on the successful launch of International Investment and Trade Forum 2011 and I am proud to have been associated with this timely organized international investment forum at which many countries around the world have come together to share their experiences and potentials in the field of investment and trade.

Global economic issues

I take this opportunity to thank the principal organizer of the event, the Ministry of Commerce of China and the co-sponsors namely United Nations Conference on Trade and Development (UNCTAD), the United Nations Industrial Development Organization (UNIDO), the World Association of Investment Promotion Agencies (WAIPA) and the World Bank International Finance Corporation (WBIFC).

If not for the untiring efforts of His Excellency the Governor of the Fujian Province, the Vice Governor and the Officials of the Ministry of Foreign Affairs of Fujian Province, this major event would not have been so successful. Hence my unreserved appreciation to them all.

As you maybe aware CIFIT provides a window for an extensive dialogue on global economic issues, trends of international capital flows, new investment priorities and emerging industries such as alternative energy, energy conservation and environment protection, electronic information creative culture and service outsourcing in china, offering participants the most authoritative and up to date information on investment in China and beyond.

Close ties

Since the CIFIT is poised to become world’s most prestigious international investment exposition, Sri Lanka would like to engage with the Forum having in mind the long term prospects in term of promotion of trade, tourism, investment between our countries.

If I may refer to Sri Lanka’s relations with China our relations are as old as the nation’s history, which goes back to even beyond the 4th century BC. The earliest authenticated reference to Sri Lankan links with China is made by the Roman Historian and Naturalist Pliny. He spoke of stalwart men of light complexion, blue slit eyes, coarse voices and lacking a common language, who called for trade at the port of Mantota in the Mannar coast, a flourishing trade entry point at that time in the island.

Fa-Xian, the celebrated Chinese Buddhist monk who travelled to Sri Lanka to acquire Buddhist scriptures between the years 399 and 412 AD, records that he was greatly moved to find silks in the island from his native China. Contemporary Chinese records maintain that Persia bound vessels from China traded in gems, spices and ivory at the flourishing port of Mantota. Ivory was highly valued in China, where expert Chinese craftsmen turned out exquisite carvings from it.

In 527 AD King Silakala had sent an Ambassador to the Chinese Emperor’s Court. Although this mission had been of a purely religious nature, the establishment of political relations and securing closer trade contacts would, no doubt, have been the other motives of these missions. With the installation of the Tang dynasty in China (618-907) AD closer ties were established with Sri Lanka. Several Chinese monks visited the island in search of the Dhamma, in addition to the many Sri Lankan Buddhist monks who travelled to China.

A large collection of Chinese coins, in total 1352, were found almost a hundred years ago in Yapahuwa, the early 13th Century AD stronghold of King Buwanekabahu the first. Three of the coins analysed had been from the Tang Dynasty and all the others from the Northern and Southern Song dynasties. More collections of coins and artefacts had been discovered in places such as Buttala and Nagapatnam, suggesting that relations with China dating back to hundreds of years.

Landmark event

The strategic location in the Indian Ocean has, from time immemorial, earned a reputation for Sri Lanka as a destination for entrepot trade and there is evidence that merchants from the East including China, traded with merchants of the West in Sri Lanka. A Chinese Admiral, Zheng He undertook an expedition to this country in the 15th Century AD which was another landmark event in the history of our relations. It is also indicative that he had come to Sri Lanka on three consecutive occasions. Modern day ties with China accelerated with the Rubber-Rice Pact signed between the two countries in 1952 even before Sri Lanka established diplomatic relations with China. Diplomatic relations with the People’s Republic of China and resident embassies in each other’s capital were established in 1957. Since then China has stood firmly as a close friend and ally of Sri Lanka. Sri Lanka appreciates China’s understanding of the situation in Sri Lanka and its positive approach towards supporting Sri Lanka in its efforts to overcome adverse propaganda launched by anti - Sri Lanka elements with vested interests. China’s open support for safeguarding Sri Lanka’s sovereignty and territorial integrity is well acknowledged by Sri Lanka with deep sense of gratitude.

During the past five years, under the leadership of President Rajapaksa, we have developed unprecedented strong bilateral relations not only with the central government, but also with the provincial governments of China. The relations have been consolidated by regular high-level exchange of visits between the two countries. In that context I consider my visit to Fujian province this time as an important landmark in our history of relations.

Economic and social development

Having eliminated terrorism from our soil Sri Lanka is on a fast tract approach to develop the infrastructure for a solid and sustainable economic and social development. In that context we appreciate the unreserved support and assistance extended by our friendly countries including China.

China has become the largest development partner and an important investor in Sri Lanka especially in infrastructure projects. There are plenty of opportunities and areas that we can exploit for mutual benefit.

Sri Lanka’s exports to China have in the recent past increased tremendously reaching 102 million US Dollars in 2010 from mere 37 million US Dollars in 2006. The structure of Sri Lankan exports to China has changed substantially adding more products to the basket of exports. There has been a significant shift towards the export of tea, coir, fibre, gems and jewellery, rubber based products and fish products to China in the recent period. Sri Lanka mainly imports, tractors, vehicle spare parts, machinery, fabrics and chemicals etc from China.

Bilateral trade

The Asia Pacific Trade Agreement (APTA) among a number of South Asian and East Asian countries has given us a framework to expand bilateral trade through a Preferential Trading Agreement.

Sri Lanka offers wide variety of investment opportunities and incentives to foreign investors. In fact, China has also invested in Sri Lanka in a number of development projects such as food processing, deep sea fishing, rubber and rubber products, manufacture of motorcycles and bicycles, mini hydro power generation plant and apparel and textile manufactures.

We invite investors in such sectors as, Infrastructure, Electronics, Light Engineering, Textiles, Garments and Fashion accessories, Rubber, Computer Software, Tourism, Recreation and Leisure.

Sri Lanka is also a very attractive destination for leisure travellers. Businessmen who may initially come as tourists could also get a glimpse of the business opportunities in Sri Lanka to return later.

International Investment Forum 2011 has given us a good opportunity to further strengthen the cooperation between our countries and China in the field of investment, trade, tourism and various other areas of interest. We should therefore strongly support and actively participate in the CIFIT in the years to come, with the view to exploit its full potentials.

In conclusion, I would like to express my sincere gratitude to the organizers for giving me this opportunity to deliver the keynote address at this important forum. I wish the international investment forum in 2011 a great success.