Lanka seek trade and investment partners from China

Sri Lanka actively seeks trade and investment partners from its second largest international trade partner, People's Republic of China and the Asia Pacific Trade Agreement (APTA) has given Sri Lanka a framework to expand bilateral trade.

"There are many opportunities and areas that we can exploit for mutual benefit. As our international investment profile improves, we actively seek trade and investment partners and technology transfers and would welcome investors from Yunnan and from other provinces of China. We invite investors to the sectors of Infrastructure, Electronics, Light Engineering, Textiles, Garments and Fashion accessories, Rubber, Computer Software, Tourism, Recreation and Leisure projects," said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka addressing the seventh China South Asia Business Forum (CSABF) held at the Convention Centre of Kunming City in Yunnan Province, China, on 05 June which was packed with top trade and business sector representatives from South Asia and China.

Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka addresses the seventh China South Asia Business Forum (CSABF) held at the Convention Centre of Kunming City in Yunnan Province, China, on June, 5.

The meticulously organized event is one of the three events of the day the other being the South Asian Countries Trade Fair, in which the Export Development Board under Minister Bathiudeen takes part.

Apart from South Asian countries, Laos and Vietnam too had their displays. The third parallel event is the China Import Export Fair. Among the South Asian countries taking part in the event, Sri Lanka has the second strongest presence of 100 stalls of 92 Lankan firms. The triple events together have become one of the four top annual events (such as the Canton Fair) in China's trade calendar. Due to its high prominence in the trillion dollar GDP nation, the Kunming Fair has become the second biggest annual fair in the South West China region.

The forum, themed 'Building Bridges through Socio Economic Cooperation' also included meetings between various participating country officials and two parallel sessions on 'Important breakthroughs in Economic Cooperation between China and South Asia' and 'Innovative Ideas for Trade and Investment between China and South Asia'.

Explaining the importance of China in Sri Lanka's trade, Minister Bathiudeen said: "Followed by India, China was our second largest trade partner in 2011 with a total bilateral trade of 2.23 billion dollars. Sri Lanka's exports to China in the recent past show an upward trend reaching 152 Million US Dollars in 2011 from a mere 37 Million US Dollars in 2006. China was Sri Lanka's largest lender in 2010 giving $ 821 Million accounting for 25% of our international borrowings."

However China still has only 1% of its exports shipped to Sri Lanka. China has become the largest development partner and an important investor in Sri Lanka's infrastructure projects. In 2011, FDI inflows exceeded Sri Lanka's target of one billion dollars.

In the previous year 2010 China was Sri Lanka's largest lender giving $ 821 Million accounting for 25% of international borrowings." Explaining Sri Lanka's partnership with Kunming, Minister Bathiudeen said: "We have been participating in this fair since 2007 when this was held for the first time in Beijing. We requested China to host this as an annual event and welcomed the proposal to hold the fair in Kunming from 2008.

The success of participation at the previous events encouraged Sri Lanka to be the second largest Exhibitor with no less than 100 stalls in this year's Trade Fair. In fact, I am pleased to announce that Sri Lanka's participation in Kunming has strengthened considerably from 2009.

The total Sri Lankan firms taking part here were only 64 in 2009 but this this year has increased to 92 and similarly, our stalls increased from 63 to 100.

With each Kunming session we have gained increasing focus with the realization that our tea, gems and jewellery, handicrafts, coir products, fishery products, fresh fruits, ayurveda products, and coconut products, are sectors with higher potential in this fair."

Stressing APTA's importance, Minister Bathiudeen said: "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."

Inviting Chinese investors to Sri Lanka, Minister Bathiudeen said: "There are many opportunities and areas that we can exploit for mutual benefit.

As our international investment profile improves, we actively seek trade and investment partners and technology transfers and would welcome investors from Yunnan and from other provinces of China. We invite investors to the sectors of Infrastructure, Electronics, Light Engineering, Textiles, Garments and Fashion accessories, Rubber, Computer Software, Tourism, Recreation and Leisure projects.