Friday Aug 08, 2008
President Mahinda Rajapaksa met Chinese Commerce Minister Chen Deming to discuss the bilateral economic co-operation between China and Sri Lanka yesterday.

Further duty concessions to be considered:

President Rajapaksa thanked the Chinese Government on its interest in Sri Lanka’s economic development and made a special mention about the Puttalam Coal Power Electricity Project, Hambantota Port Development and the setting up of an institution for performing arts. The Trade Minister assured that the projects would be started soon.

He said assistance would be provided to the Colombo-Katunayake Expressway and stage I and II of Puttalam Coal Power Electricity Project. The Chinese Trade Minister also pledged to strengthen trade relations between the two countries by giving a boost to export trade and domestic production.

He pointed out that Sri Lanka’s exports had gone up by 27 per cent in the early part of 2007.

“Under the new Trade Agreement, we would provide further concessions to increase Sri Lanka exports,” he said. He said stage IV of the new Trade Agreement would be completed early. The Chinese Minister said 23 per cent of Sri Lanka’s export commodities contain tea and as such further duty concessions would be considered.

He also agreed to introduce a tea package for the Merigawa Export Processing Zone as a step to enter the Chinese market.

Sri Lanka is seen as an ideal location to set up textile industries and other light industries in view of the mutual friendship between the two countries, Minister Deming said.

The importance of Sri Lanka setting up of a special investment zone at the upcoming Chinese International Investments and Trade Council were also discussed. President Rajapaksa apprised the Chinese Minister of the petroleum exploration work in the Mannar Bay.

The Chinese Minister expressed his consent to visit Sri Lanka to review the progress of projects started with Chinese aid.

Finance Secretary Dr. P.B. Jayasundara, Ambassador Karunatilleke Amunugama, Presidential Additional Secretary Gamini Senarath, Presidential Co-ordinating Secretary Sajith de Vaas Gunawardena and Embassy officials were present.

Chinese help for IT sector

President Mahinda Rajapaksa met the Chinese Industries and Information Minister Li Yizhong and discussed high-tech development in the context of maintaining friendly relations between the two countries.

The President requested the Chinese Minister to encourage Chinese investors with regard to the development of rural information technology in Sri Lanka.

The Minister while expressing his support, cited a few Chinese firms which have successfully invested in Sri Lanka.