Sino-Lanka biz at $3.7 Bn

First Guangzhou-Lanka biz pact inked in Colombo

• ‘Want Chinese imports to boost exports!’-Rishad
• 39 member Guangzhou delegation in town
• ’14 Sino-Lanka biz at $3.7 Bn
• Trade with China doubled since 2009’-Rishad
• Imports to Sri Lanka are 95% of bilateral trade

The first ever trade and business pact between Sri Lanka and the capital city of mainland China’s largest GDP maker Guandong was inked in Colombo on 03 July in Colombo. “Today’s MoU signals a new opening for Lanka – China bilateral relations at business to business levels. Just as we want to increase our exports to China, we also continuously use imports from China. A great amount of raw material imports from China to Sri Lanka are re-used to achieve our export targets” said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 03 July.

Minister Bathiudeen was addressing the MoU signing event at the Industrial Cooperation Seminar & Project Matching Forum of National Chamber of Commerce in Colombo 08 on 03 July. Taking part in the session were 39 members of visiting Guangzhou business and industrial delegation as well as reps from various government departments including the EDB and BoI. The MoU was signed by Wang Fuchun (Vice President of China Council for the Promotion of International Trade Guangzhou Committee, representing Guangzhou) and  Thilak Godamanna (President – National Chamber of Commerce of Sri Lanka) at NCC Auditorium in Colombo on 03 July.

“The historic NCC is taking an international initiative today to strengthen the, Lankan economy further as per the vision of HE the President Maithripala Sirisena and Hon Prime Minister Ranil Wickremesinghe” ” said Minister Bathiudeen, and added: “Today’s MoU signals a new opening for Lanka – China bilateral relations at business to business levels. Visit by a 39 member strong delegation from Guangzhou is yet another sign of  continuously strengthening Sri Lanka-China bilateral cooperation over decades. Guangzhou is the important trade gateway to the 106 million strong Guangdong provincial market. Guangdong province’s reputation as the largest province by GDP in mainland China, taking 10% of the country’s GDP is a great incentive for Sri Lankan businesses looking to establish B2B linkages. Guangdong province is also located close to Hong Kong and Macau the global business hubs of far-east. Guangdong’s capital Guangzhou’s economy alone is growing at an average annual 10% rate. In fact, China has been a long time friend of Sri Lanka and our mutual histories stretch across the ancient Silk Route.  In modern times, China-Sri Lanka bilateral trade has become an important contributor to our export growth. In fact, just as we want to increase our exports to China, we also continuously use imports from China. A great amount of raw material imports from China to Sri Lanka, are re-used to achieve our export targets. For example, a significant amount of our apparel exports have raw material inputs, directly imported from China.  In 2014, our total trade with China has almost doubled since 2009. Also in 2014, our exports to China almost tripled since 2009. This shows that the majority of our trade with China consists of imports from Chinese suppliers.”

Last year Sri Lanka’s total trade with China stood at $3.7 Billion. Of this $3.4 Billion were imports to Sri Lanka. Almost 95% of 2014 Lanka-China bilateral trade consisted of imports from China.