China-Sri Lanka FTA would boost China-India friendship, officials say
The China-Sri Lanka Free Trade Agreement (FTA), expected to be signed this year, paves the way for China to strengthen its friendship with India, said Ananda Goonatilleka, President of Sri Lanka China Friendship Association (SLCFA).
He made this comment to the Business Times on the sidelines of the Colombo-Zhongshan Trade and Investment forum held at Galadari Hotel in Colombo last Tuesday.
Seen here is Ananda Goonatilleka, President of Sri Lanka China Friendship Association in conversation with Tan Wenhui, Deputy Director - General of Zhongshan Foreign and Overseas Chinese Affairs Bureau of China. Pic by Susantha Liyanawatte.
Adding to that, he noted, the FTA with China was the perspective of the President Mahinda Rajapaksa and is almost in the process of signing. Sri Lanka already has FTAs with India and Pakistan but India will never go for an FTA with China, he stressed. When the FTA between Sri Lanka and China opens up, it will help the Chinese to do business with India and Pakistan, he added.
The Colombo-Zhongshan Trade and Investment forum was attended by around 35 business delegates from Zhongshan in China and over 100 local business delegates. Last year in March 2013, the SLCFA with a delegation of seven members visited Zhongshan (city). The Chinese government and the private sector had invested in Zhongshan to make the city equivalent to that of the trade in Hong Kong, he added.
Speaking to the Business Times, Zhongshan Bureau of Foreign Trade and Economic Cooperation Deputy General Director, Richard Liu said, “Zhongshan is a small city in Southern China with 3.5 million people and more industry output. China has a very good relationship with the Government of Sri Lanka for the past many years.” Sri Lanka is located in the most important location in Asia to make connections easily with countries in the East and West. The country has also got a very good education system. China will have a vast number of opportunities to invest in the country and strengthen the relationship, he added.
Mr. Liu in his address explained the investment climate in Zhongshan and future plans of the Zhongshan Peoples Municipal Government to make the city an important high-tech manufacturing base in Southern China adjacent to Hong Kong and Macau. He also stressed that Sri Lanka is beautiful and a safe country that has put forward policies to attract foreign investors.
Board of Investment (BoI) of Sri Lanka Executive Director Renuka M. Weerakone told the Business Times that the board only looks at the private investments that come into the country and not get involved in the government to government investments which are usually handled by different ministries.
For the private investors that visit Sri Lanka, the BoI accommodates them under the thrust sectors and offer them incentives under the Inland Revenue act.
Ms. Weerakone made a presentation on Sri Lanka’s investment opportunities especially on the favourable policies and export and import demand. She also explained to delegates, the strategic importance of Sri Lanka with regard to the existing FTAs with India and Pakistan.