Ranil’s China visit:

Impetus for Sino-SL investments and trade

By Manjula Fernando and Chandani Jayatilleke

A Free Trade Agreement (FTA), Chinese Port City and Hambantota port projects are expected to feature prominently during Prime Minister Ranil Wickremesinghe’s upcoming visit to China next month.

The high level trip on April 6 will be undertaken to strengthen ties between the two countries. The government is expected to take up new joint venture projects including the Southern Highway Extension and Kandy and Ratnapura Highways, with the world economic giant.

Prime Minister Wickremesinghe told Parliament that,”Deals with China will be finalised during this trip which is a follow up to the one undertaken by President Maithripala Sirisena last year.’

One of the MoUs to be signed is to set up joint ventures to manage and operate the Hambantota sea port and the Mattala airport, Minister of Development Strategies and International Trade, Malik Samarawickrama said.

A consortium led by China Merchants Group has agreed to enter into joint ventures to manage and operate the Hambantota port and Mattala airport and also to set up their own industrial zone in Hambantota, Minister Samarawickrama who visited China recently said.

Central Bank Governor Arjuna Mahendran said Sri Lankahopes to get 1.5 billion US dollars from China almost immediately through some of the development projects. A group of top Sri Lankan bankers met Chinese bankers in February to discuss investment and funding opportunities. The Chinese banks included Bank of China, China Exim Bank, China Development Bank, Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications.

“The banks have expressed a keen interest to invest in Sri Lanka and fund Chinese and even Sri Lankan projects. I hope during the Prime Minister’s visit to China, we could identify and prioritise these projects so that our bankers can coordinate with their Chinese counterparts to set out modalities for the funds to be transferred,” he said. Chinese assistance for the Western Region Megapolis project and the early completion of the FTA between the two countries are among the key topics on the agenda.

The Government recently unblocked the US $ 1.4 billion Port City project in a move, observers said, will rebuild relations with Beijing. The decision was preceded by a supplementary environmental impact study last year to clear outstanding environmental issues. CHEC Port City Colombo (Pvt) Ltd, the Project Company for the Colombo Port City welcoming the move said it will try to complete the project on schedule.

Early this month, Minister Malik Samarawickrema and Law and Order Minister Sagala Ratnayake visited Beijing to prepare the ground work for the Premier’s visit. During the visit, they held meetings with Chairperson of the Exim Bank of China, Ms. Hu Xiaolian and Governor, China Development Bank, Zhen Zhijie.

The Prime Minister will be accompanied by Foreign Minister Mangala Samaraweera, Minister Samarawickrema, Transport and Civil Aviation Minister Nimal Siripala de Silva, Special Assignments Minister Dr. Sarath Amunugama and City Planning and Water Supply Minister Rauff Hakeem.

The delegation will return to the country on April 12.