First China Product Expo opens in Colombo

‘China contributed $10 Bn to Lanka so far’-HE Amb Xianliang

• First China Product Expo opens in Colombo
• ‘Lanka’s strategic location is not unique’– HE Chinese Amb Xianliang
• ‘Calling Chinese manufacturing to set up here’-Rishad
• ‘We believe in business for people’s sake’-– HE Chinese Amb Xianliang

China has contributed almost $10 Bn to Sri Lanka so far while Sri Lanka’s strategic location is not such a unique advantage to the country said the mainland, while Sri Lanka on its part, called Chinese industry to set up here and gain faster access South and West Asia, as revealed on 20 November in Colombo. “Sri Lanka being located in the middle of Indian Ocean does not mean there is (special) investment advantage. There are other coastal countries in this region at the same time having same advantages as Sri Lanka! Still China attaches a little more importance on China-Sri Lanka cooperation” stressed HE Yi Xianliang (Chinese Ambassador to Sri Lanka) on 20 November in Colombo.

HE Chinese Ambassador Xianliang was addressing the inauguration event of the first China Product Expo in Colombo on 20 November. The business buyer aimed special exhibition at SLECC is organised by the China International Exhibition Center Group (CIEC), Guangdong Chamber of Commerce of Importers & Exporters (GCCIE), Worldex Fiera Milano and supported by the National Chamber of Commerce of Sri Lanka and Ceylon National Chamber of Industries (CNCI). Joining the session were TMKB Thennakoon (Secretary, Ministry of Industry and Commerce) and Sonali Wijeratne (Director General-Department of Commerce).

“Sri Lanka and China has long time cooperation and friendship. Sri Lanka being located in the middle of Indian Ocean does not mean there is (special) investment advantage. There are other coastal countries in this region at the same time having same advantages as Sri Lanka! Still China, attaches a little more importance on China-Sri Lanka cooperation. What is the reason?” asked Chinese Ambassador H. E. Yi Xianliang, and added: “Because both countries are indeed friends. Secondly trade and economic cooperation is fundamental for economic relations. Last year China-Lanka trade amounted $3.2 Bn. This is a massive bilateral trade increase from six years ago. Also Chinese businesses have invested $2 Bn in Sri Lanka. The Chinese government, through the Exim Bank and other banks, contributed more than $6 Bn to the development of this country. When taken all these as well as other Chinese financial contributions to Sri Lanka over the last 50 years, it totals to about $10 Bn. This means Chinese financial contributions to Sri Lanka is quite important with positive impacts on the development of this country. I visited Sri Lankan harbours and airports and there is rapid development in the country’s infrastructure. I do believe these developments and achievements due to this contribution-and business sectors of both sides too did a lot. On this basis I must express my sincere appreciation for this Exhibition, which is not just a fair but also an FDI opening for Sri Lanka. I do believe business is for people, for development and for the future of both countries. We also fully support bilateral exchange, not unilateral exchange.”

China became the topmost global investor in Sri Lanka by Y2013 and according to BoI data, in 2013 China had 24 investment projects valued at $239 Mn as cumulative ‘realized’ investment.

“China is Sri Lanka’s second largest product supplier. Bilateral trade between China and Sri Lanka has also been growing steadily. By last year trade with China have almost doubled from 2009 volumes. Also in 2014, our exports to China almost tripled from 2009 levels. According to the Department of Commerce under me, latest statistics show that China has come   within the first   20 export   destinations of Sri Lankan products in 2014” said Minister Bathiudeen and added: “In fact, we are pleased to inform you that our exports to China in the first half of this year alone has increased by a strong 20 percent in comparison to entire exports to China in 2014 which was only $173 million” said Minister Bathiudeen and added: “What is more important is that China also has a big role in our exports. A great amount of raw material imports from China are re-used in Sri Lanka’s exports, specially in its world class apparel manufacturing. It is in this surging trade background that today’s first ever Chinese trade fair of international standards is opened in Colombo. I am given to understand that this is the first ever Chinese trade fair targeting business buyers by major provinces of China to be held in Colombo. I believe that Sri Lanka is not only a gateway for Chinese trade fairs but a great investment destination for Chinese industries, multinationals and manufacturers who want to strengthen their supply chains that extend to South and West Asia. Today I wish to call Chinese manufacturers to Sri Lanka to partner with us. I appeal to all the members of visiting Chinese delegation here to take a special message to your chambers and businesses. Our special message is that Sri Lanka is not only a South Asian market for China but is a great off-shore assembly hub for Chinese and Far Eastern manufacturers who are aiming for South and West Asia. Today we invite Chinese manufacturers and industries to invest and partner with Sri Lanka, use our strategic location, and obtain faster access to these Asian markets and increase your export revenues.”

Last year, bilateral trade between China and Sri Lanka increased by 16% to $3.5 Billion. Even in January to June this year, trade with China totalled $ 1.9 billion. 90 percent of this were imports from China.