MSR to boost Lanka's global trade

The revival of the Maritime Silk Road (MSR) by Chinese President Xi Jinping will increase trade and strengthen bilateral relations between Sri Lanka and China, said, Chinese Ambassador Wu Jianghao.

He was addressing a seminar on the '21st Century Maritime Silk Road' organised by the Lakshman Kadirgamar Institute for International Relations and Strategic Studies on Friday.

Jianghao said that trade between the two countries has increased sharply and will continue to expand with the MSR revival. We are confident that Asia, Europe and Africa which will be linked through the MSR will benefit immensely with the resumption of the sea route operations.

Trade between China and South Asia rose to US$ 1000 billion last year from around US$ 600 billion in 2011. Sri Lanka's exports to China increased from US$ 28 million in 2005 to US$ 108 million last year while imports increased from US$ 631 million to US$ 3,001 million during the same period in favour of China.

Jianghao said that Sri Lanka has much to offer to China and the rest of the world using the MSR. The Free Trade Agreement between Sri Lanka and China will boost trade with exposure to new markets. Tourism is a key area that will benefit from the MSR. The number of Chinese tourists increased by 140 percent to reach 100,000 mark this year.

"China will set up a MSR fund to strengthen it commitment to the sea route. The MSR will strengthen political, security, trade, people to people and financial links", the Ambassador said.

Around 80 percent of China's external trade is under the MSR and 70 percent of oil imports to the country are through the silk route.

The MSR revival has sparked intense debate and discussion across the international diplomatic and political arena.

The MSR through time has served as a venue of exchange of cultural, political, religious, artistic and economic ties between the Far East and Europe.

Sri Lanka is among the few countries to extend its support to reviving the MSR. Sri Lanka plays a strategic role in the MSR due to its strong diplomatic relations with China and its geographical location in the Indian Ocean and being the heart of the MSR.

However, economists said that Sri Lanka has a limited quantity to export to China as value added products unlike China which as a host of niche brands to offer.

We need to build more brands and promote them. Sri Lanka should invite Chinese investors to manufacture their products here and export them to China.

-LF