Lanka-China FTA to take bilateral trade to new heights

An MoU was signed between the Export Development Board (EDB) and the China Council for the Promotion of International Trade of Guangdong (CCPIT-Guangdon), in Colombo recently.

"During President Xi Jinping's visit to Sri Lanka in September, he and President Mahinda Rajapaksa reached a consensus to deepen the strategic partnership between the two countries and for the implementation of the 21st Century Maritime Silk Road. Today, the two countries have launched bilateral FTA negotiations," said Vice President, CCPIT Guangdong Sub Committee, Ms Zhang Hua at the signing ceremony.

Representatives from 19 leading Guangdong firms and government enterprises, including Guangdong Guangye Asset Management (mineral resources), Guangzou Dajunmei Electric (consumer electronics), Landrent Investment Ltd (enterprise management), Qinyuang Takson (tea), Qinyuang Silver Field (tin and scrap metal processing), Qinyuang Shengli Copper Materials (copper processing), and First Rare Materials Co (producer of high purity metals including selenium, tellurium, cadmium) were present for B2B meetings with representatives of over 20 Lankan firms such as D. Samson Industries, Akbar Bros, Mt Lavinia Hotel, Robert Agencies, Abans PLC, Oviklo Int'l, and Agility Logistics.

Guangdong (formerly Canton) is China's largest provincial economy producing more than 10% of China's GDP, with a population of 104 million and hosting some of the largest global multinationals such as Shell (the Petrochemical giant) and Du Pont (chemicals).

Guangdong also hosts China's largest international annual expo, the 'Canton Fair'.

Ms Hua said, "Bilateral cooperation in investments, JVs, tourism, development, bilateral projects a would be 'further deepened' in the future. CCPIT Guangdong has maintained good relations with Consulate General of Sri Lanka in Guanzou and organised several business meetings to further promote bilateral relations."

"We organised a business meeting last month with the Consulate General of Sri Lanka in Guanzou for the entrepreneur delegation led by the EDB. We hope that today's MoU will further promote bilateral business between Guangdong and Sri Lanka," she said.

In 2013, Sri Lanka imported goods to the value of US $ 3 billion from China which was the second largest country for imports. Trade with China was US$ 3,081 million in 2013.

Chairman and CEO, EDB, Bandula Egodage said, "The EDB team did considerable work to coordinate this MoU.

It is a commitment that shows the interest of both parties to engage in bilateral trade."

Executive Director, EDB, Dr Yousuf Maraikkar said, "China was the 18th export destination for Sri Lanka with an export value of US$ 121 million contributing 1.2% of total export earnings in 2013.

Sri Lanka's exports to China has grown over the past five years increasing from US$ 59 million in 2009 to US$ 121 million in 2013.