China, India to be investment leaders in Lanka

Dr. Sarath Amunugama, Minister of Enterprise Development and Investment Promotion said the government was taking concrete steps to address two fundamental barriers that have hampered economic growth.

Minister of Enterprise Development and Investment Promotion Dr. Sarath Amunugama, with Chairman/Director General of the BOI, Dhammika Perera, Ambassador of the People’s Republic of China, Ye Dabo, Chairman of the Board of Huichen Investment Holdings Ltd. Hongmin Zhang and President of the Beijing Lvrui Investment Management Co. Ltd, YuPing Huang.

Speaking to a delegation of senior business leaders from China facilitated by the Board of Investment, the Minister said the government was in the final phase of achieving victory in the war. The minister said the people in the North would benefit tremendously from the government’s economic policies once democracy is re-established there.

He said the government was moving rapidly to bring down the cost of electricity, which has hampered economic progress. The Norochcholai coal power plant being built with Chinese assistance will reduce the cost of electricity, he said.

The 15-strong delegation met the Minister accompanied by the Ambassador of the People’s Republic of China, Ye Dabo. Secretary, Ministry of Enterprise Development and Investment Promotion, B.H.M.

Ratnasiri, Chairman/ Director General of the BOI, Dhammika Perera, Head of Investment Promotion, Duminda Ariyasinghe and other senior BOI officials attended the meeting. The delegation represented Chinese companies in mining, automobile assembly, communications equipment manufacturing, trading, household appliances, light industry and consumer goods who are interested in investing in Sri Lanka.

Dr. Amunugama said the BOI had taken important steps to facilitate the needs of investors from China. The BOI has demarcated a separate zone for Chinese investors at Mirigama, established an investment promotion office in Shanghai and earmarked a special five-year visa for investors, he said.

The Minister said the country was looking to China and India to be the investment leaders in Sri Lanka. He said the island was centrally located as a transshipment hub to the Middle East, the Subcontinent, the Far East and Australasia.

He stressed that China needs to see Sri Lanka as a gateway to the South Asian region which collectively amounts to one quarter of the world’s population. Sri Lanka was well connected to South Asia with over 140 flights a week to India alone.

South Asia’s economic growth was the reason that compelled American companies to invest in India, he added, citing the entry of retailing giant Wal-Mart to India.

Chinese investors in Sri Lanka would benefit from the advantages accorded to Sri Lankan enterprises under the Indo-Sri Lanka Free Trade Agreement and the GSP+ agreement with the European Union. Minister Amunugama noted the close relations between Sri Lanka and China for over five decades.

Apart from the Norochcholai power plant, economic co-operation between the two countries includes the expressway from Colombo to the Katunayake airport and the construction of the Hambantota Port, he said.

The leader of the Chinese delegation, Chairman of the Board of Huichen Investment Holdings Ltd, Hongmin Zhang, stressed that although the delegation represented some 20 companies, more than 50 Chinese enterprises were interested in investing in Sri Lanka. His group looked forward to visiting the Special Economic Zone at Mirigama being developed by the BOI as a dedicated zone for Chinese industries in Sri Lanka, Zhang said.

The Ambassador of the People’s Republic of China, Ye Dabo said the country was keen to assist Sri Lanka, including the promotion of Chinese investments to the island.