CHINA-SA TRADE!

‘Silk Route back in SA trade dialogue’-Rishad in Kunming

• 3^rd China-SA Expo concludes in Kunming
• Says Silk Route also forged enduring relations
• Sri Lanka pavilion: 125 exhibitors

The annual Kunming Fair series in China strengthens Sino-Lanka relations further-and current Silk Route dialogue can help bilateral boost trade relations further, as announced on 12 June in Kunming. “Sri Lanka and China are historic friends and share a multi-faceted relationship going back to several centuries. The Silk Route is one reason for this enduring bilateral friendship” said Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 12 June in Kunming.

Minister Bathiudeen was addressing the 10th China South Asia Business Forum on 12 June at the third China-South Asia Exposition and 23rd China Import & Export Fair held in Kunming, China. With the collaboration of the Sri Lanka Embassy in Beijing and the Sri Lanka Consulate in Chengdu, Sri Lanka Export Development Board organized the Sri Lanka pavilion with 125 stalls at the China South Asia Expo showcasing Lankan gem and jewellery, tea, coconut products, spices, organic products, handcrafts, batik, ceramic products and etc. The Kunming expo concluded on 16 June. Minister Bathiudeen also unveiled the Lanka Pavillion on 12 June.

“This year’s theme “Promote the construction of Silk Road Economic Belt; Accelerate the Pace of Business Cooperation” is a very timely topic of discussion as the Silk Route is back in South East Asian trade dialogue. The Silk Route was at one time the historic and sole trans-national ocean and land highway network linking China to Mediterraneans right through Sri Lanka and India. Sri Lanka and China are historic friends and share a multi-faceted relationship going back to several centuries. The Silk Route is one reason for this enduring bilateral friendship. Being strategically located at the tip of South Asia Sri Lanka was a natural port of call for Silk Route navigators and was well-known as “His-lan” and “Silan” by the ancient Chinese sailors” said Minister Bathiudeen, and added: “Later opening the modern day trade relations between China and Sri Lanka both countries entered into the well-known Sino-Lanka Agreement on Rubber-Rice exports agreement in 1952. The significance of this trade initiative could not be understated; in that this agreement was entered into even before the two countries established their formal diplomatic relations in 1957. More recently His Excellency the Chinese President Xi Jin Ping announced his vision of a ‘silk road economic belt to the world’ in 2013. The on-going cordial bilateral relations between both countries advanced greatly when His Excellency Xi Jin Ping arrived in Sri Lanka last year strengthening the on-going Silk Route cooperation further. His Excellency Xi Jin Ping’s new Silk Road initiative is also significant on Sri Lanka’s international trade as well. Construction of some relevant infrastructure has already been completed to maintain inter-connectivity. We believe that this route can also open up opportunities for Sri Lanka to import raw materials from China and far east process them in Sri Lanka and export as value added products. Sri Lanka is now progressing forward with a rapid development programme launched under the new government of His Excellency The President Maithreepala Sirisena. HE the President of Sri Lanka concluded a very productive State visit to China in March 2015. Chinese participation in the Sri Lankan economy is also considerably significant. China is the second largest supplier to Sri Lanka. Chinese imports to Sri Lanka is worth US$3400 million covering 18% of total imports to Sri Lanka. Sri Lanka’s main export items to China are apparel footwear tea in bulk mixed coir fibre mattress fibre sheet rubber and rubber tyres etc. The imports to Sri Lanka from China have also increased from US$ 630.million in 2005 to US$ 3414 million in 2014. In 2014 Sri Lanka‘s main import items are woven fabric, electrical & electronic products, petroleum products, telephone sets. China has already made substantial investments in Sri Lanka. The 2014 investments were at $403.5 Mn. There is much scope for further investment in sectors such as tourism & leisure infrastructure, knowledge services, utilities, apparels, export manufacturing, export services, agriculture and education. Sri Lanka also encourages investments in low cost energy and renewable power generation projects. China is the third largest tourist market of Sri Lanka and rapidly emerging tourism markets as well. Tourist arrivals from China in 2014 were at 128166. We invite you to come and invest in tourism related infrastructure development. It is clear that the annual Kunming Fair is one of the most practical ways to strengthen our historic bilateral trade relations.”

Chinese Vice President Li Yuanchao addressing the opening ceremony emphasized that China will actively support the role of peaceful development in the region and that the development of China’s trade relations will open opportunities for surrounding nations including Sri Lanka.

China is the 14th largest export market for Sri Lanka with exports worth US$ 173 million in 2014. Sri Lanka`s   exports to China in   the recent past has shown an upward trend   reaching   $173.48 Million in 2014 from   a mere   $ 25.64   Million in 2006.