High-level delegation from Shanghai visits BOI

BOI Chairman Upul Jayasuriya meets the delegation consisting of six senior officials of the Communist Party of China (Shanghai chapter) led by CPPCC Shanghai Committee Vice Chairman Xu Yibo

The Board of Investment of Sri Lanka recently hosted a delegation consisting of senior officials from the Chinese People’s Political Consultative Conference of Shanghai (CPPCC).  

The delegation consisted of six senior officials of the Communist Party of China (Shanghai chapter) and was led by Vice Chairman of the CPPCC Shanghai Committee Xu Yibo. The delegation arrived on a fact-finding mission to develop greater cooperation between China and Sri Lanka.  

In the course of its visit the delegation inspected infrastructure in Sri Lanka, notably the port and international airport in Hambantota.

The delegation was welcomed by BOI Chairman Upul Jayasuriya, who briefed them on the role of the BOI as the sole Sri Lanka Government institution established by law to attract Foreign Direct Investment.  He added that by law the BOI was empowered to sign agreements with companies and set up investment projects in Sri Lanka.

Furthermore, the Chairman stated that Sri Lanka was the most business friendly country in South Asia and had entered into free trade agreements with both India and Pakistan. This signifies that any of the 4,000 identified items produced in Sri Lanka with a 35% value addition could be exported to India and Pakistan duty free. Hence Sri Lanka was the gateway to South Asia and Chinese enterprises may seriously consider investing in Sri Lanka to access those very large South Asian markets.  

Jayasuriya told the delegation that Sri Lanka’s relations with China had been particularly friendly.  Currently, the port city project was progressing swiftly. Furthermore, China has built both the port and international airport in Hambantota and the Government has also signed an agreement on the Hambantota Port through which Chinese companies could be established.

At a political level, there was the visit of China’s President Xi Jinping to Sri Lanka and also the visit by Sri Lankan President Maithripala Sirisena to China. However, relations between the two countries go back a long time.   

In 1949 Sri Lanka recognised the People’s Republic of China, the first non-communist country to do so.  In fact in 1952 the two countries signed the Rice-Rubber Pact where China bought Sri Lankan rubber for more than the market price and Sri Lanka gained access to 250,000 tonnes of rice from China at a time when the island suffered an acute shortage.

China and Sri Lanka have initiated a number of agreements including pacts on trade cooperation (1982), investment protection (1986) and double taxation avoidance (2003). Since 2013 Sri Lanka and China have been engaged in negotiations to enter into a free trade agreement.

Hence relations have been excellent and there was a need to look at the future and strengthen relations even further. Jayasuriya also told the Chinese side that Sri Lanka was currently engaged in transforming Colombo. He added that the first stage of this transformation had begun around the Beira Lake, where there are considerable opportunities for investment. Therefore Chinese enterprises who are interested in investing overseas should seriously consider this excellent opportunity.

Jayasuriya also added that the BOI had the power to grant visas for fast movement into Sri Lanka. There is a double taxation agreement between both countries. He concluded by requesting the Chinese delegation to invite investors to visit Sri Lanka in the future and also to nominate a contact person to coordinate contact between Sri Lanka and Shanghai.

Also participating in the discussion was Zhang Xinsheng, Member of the Standing Committee of the CPPCC Shanghai Committee and Chair of the Committee for Economic Affairs of the CPPCC Shanghai Committee, who added that “Sri Lanka is a golden place to invest”.   

He stated that Shanghai, being China’s major economic centre, has considerable industrial potential which had grown exponentially in the last 30 years. This included the manufacture of automobiles and aerospace products, the development of port infrastructure and so many major economic activities. The cutting edge industries of China are often located in Shanghai.  

In addition, Shanghai also hosts the headquarters of many foreign companies and is China’s business capital.  Zhang added that it would be important to find out which would be the best industries for Sri Lanka or those sought by the Government of Sri Lanka.  

The BOI Chairman responded by adding that Sri Lanka’s main interest was currently in manufacturing products with higher value additions and a technology component which would result in the transfer of knowledge into the country as well as boosting its exports. One area which particularly interests Sri Lanka is the assembly of motor vehicles and the manufacture of automotive parts.  

Assisting Jayasuriya were Executive Director (Monitoring) Renuka Weerakone, Executive Director (Promotion) Prasanjith Wijayathilake, Director (Media and Publicity) Dilip S. Samarasinghe, Director (Promotion) Nilupul de Silva and China Desk Officer Vipula Jayasinghe.

The meeting was held in a very cordial manner and augurs well for future investment from Shanghai in Sri Lanka.