500,000 jobs on the cards
Chinese delegation to discuss Hambantota SEZ:
By Rukshana Rizwie
The Chinese government has requested 15,000 acres of land in
Hambantota for a Special Economic Zone (SEZ), as part of its ‘one belt
one road’ network for which a delegation from China will be in Sri Lanka
next week for discussions on the proposed deal, Minister of Development
Strategies and International Trade Malik Samarawickrama told the Sunday
Observer.
“It is envisioned that through the conception of this zone, we will
create at least 500,000 jobs by setting up several industries,” he said
adding that a visiting Chinese Delegation who toured the Mattala Aiport
and Hambantota Port were of the view that an economic zone will be an
impetus for investments in the Southern Province.
With Phase II of the Hambantota deep sea port being rolled out and
Mattala airport on the lookout for investors, it is learnt that the
creation of this zone could potentially provide the synergy that pulls
all factors together.
“We will release 5,000 acres in three slots for the creation of this
industrial zone, however all lands will be made available only after the
appropriate Environmental Impact Assessments grant clearance,” he said.
He added that the government was of the view that many of the
projects in the Southern Province lack proper strategic planning which
has led to a dismal situation.
“We have to also pay a huge loan and interest, which is a huge
burden, so we are trying to get the Chinese government to invest and
help us in the long run to make these projects viable.” Sri Lanka is
currently in $8 Billion debt to the Chinese government.
Meanwhile, another delegation from China including officials from the
Ministry of Commerce will be here in Sri Lanka on Monday to discuss the
Free Trade Agreement(FTA) with Sri Lanka.
He added that the Chinese FTA will initially focus on apparel, tea,
gems and jewellery, rubber, coconuts and spices as key industries. There
are also plans to include a priority tariff line for competitive Sri
Lankan products that would go into immediate effect on signing of the
agreement.
A study on the proposed FTA by the Institute of Policy Studies cites
“The FTA would not only boost bilateral trade but help reduce Sri
Lanka’s heavy reliance on traditional markets in Europe and USA. In this
regard, it is imperative that the agreement covers a substantial number
of tariff lines and trade as well as address non-tariff barriers that
may hinder export expansion.
Considering the reservations about adverse effects of an FTA with
China, the agreement needs to be prepared carefully taking into account
asymmetries between the two economies, with a rational negative list and
a longer phase-out liberalisation schedule.” |