China pledges more help for Lanka

Ongoing projects to be expedited:

Dinesh WEERAWANSA in Beijing

The Chinese government has offered more assistance for Sri Lanka and will also expedite the projects under way.

Following President Mahinda Rajapaksa's meeting with the President of China Hu Jintao at the Great Hall, Beijing for bilateral discussions, China has pledged its continuous support for further development programs in Sri Lanka.

The Chinese President also reiterated his support for Sri Lanka's efforts to defend its sovereignty and territorial integrity during bilateral talks with President Rajapaksa. President Rajapaksa thanked China for funding the Puttalam Coal Power Electricity Project, Hambantota Port Development and the setting up of an institution for performing arts.

In a bid to strengthen the bi-lateral trade ties, President Rajapaksa, during his four-day official visit to China, held discussions with the Minister of Commerce Chen Deming. The President also had a fruitful round of talks with the President of EXIM Bank of China, Li Ruogu.

The Chinese Government has shown much interest in making investments in Sri Lanka to help develop Sri Lanka's economy. China's Commerce Minister assured President Rajapaksa of setting up various projects in Sri Lanka before the end of this year.

China's Minister of Commerce said assistance would be provided to the Colombo-Katunayake Expressway and stage I and II of the Puttalam Coal Power Electricity Project. The Chinese Trade Minister also pledged to strengthen trade relations between the two countries by giving a boost to export, trade and domestic production. He also agreed to introduce a mechanism to promote tea in the Merigawa Export Processing Zone to enter the Chinese market.

Lankan exporters to China too would be benefited as a result of this week's negotiations. Stage IV of the new Trade Agreement will be signed soon.

Under the new agreement, China will offer a range of concessions to Sri Lankan exporters. China has also identified Sri Lanka as an ideal location to set up textile and light industrial projects.

Bi-lateral trade between China and Sri Lanka had increased around 28 per cent enhancing the two way trade. The export value of China rose to almost 28.6 per cent this year and its import of various products also increased by nearly 30 per cent.

The overall trade balance increased by 3.42 per cent as against 2.66 per cent in 2007. The two countries also discussed the benefits for Sri Lanka by setting up a special investment zone at the forthcoming Chinese International Investments and Trade Council.

The importance of Sri Lanka setting up a special investment zone at the Chinese International Investments and Trade Council were also discussed. President Rajapaksa apprised the Minister of Commerce of the petroleum exploration work in the Mannar Bay.

In a bid to seek assistance to boost Sri Lanka's IT sector, President Rajapaksa also met China's Industries and Information Minister Li Yizhong and discussed high-tech development in the context of maintaining friendly relations between the two countries.