SL-China trade grows six fold to cross $ 4 b threshold

As bilateral trade between Sri Lanka and China crossed the $ 4 billion threshold for the first time, the Government said that the proposed FTA between the two countries would further solidify this trade growth.

“There is sixfold trade growth within a decade and this trend will grow further as both countries move towards the proposed FTA,” declared Minister of Industry and Commerce Rishad Bathiudeen. 

Minister Bathiudeen was addressing the inauguration of the second China Products Exhibition (CPE), which was held on 22 November in Colombo at the Sri Lanka Exhibition and Convention Centre (SLECC). The second CPE, with a focus on B2B, showcases an extensive range of products from leading Chinese manufacturers from Guangdong, Fujian, Hunan, Chengdu, Sichuan and other provinces with a display of consumer electronics, home appliances, led and lighting, building materials, tools and hardware, machinery, furniture and homeware, hospitality products, etc. 

Joining the occasion, along with a 120-strong visiting Chinese exhibitor delegation led by the Deputy Secretary General of the Office of the Guangdong Provincial Government Li Yiwei, were the Commercial Counsellor of the Chinese Embassy Wang Yingqi and the President of the National Chamber of Commerce Tilak Godamanna.  

Year-on-Year (YoY) total trade between both countries jumped by 12% in 2015 from $ 3.58 billion in 2014. Interestingly, YoY Lankan exports to China last year jumped by a huge 68% to $ 293 million, which, when compared to 2005 exports to China, is a tenfold trade growth.

“This exhibition is a strong platform for Sri Lankan and Chinese entrepreneurs to interact with each other and for the Sri Lankan industry to explore long-term business associations with Chinese companies for joint ventures, collaborations and import-export trading relations. This exhibition comes at an important time of historic relations between Sri Lanka and China which spans a long history going back several centuries. The relations have strengthened in recent times especially in trade,” said Minister Bathiudeen. 

“A significant amount of our exports use imports coming from China, one reason for the importance of our bilateral trade with China. The total trade turnover between Sri Lanka and China, which was at $ 659 million in 2005, has surged to $ 4 billion in 2015 for the first time. Therefore we believe that exhibitions of this nature will greatly help to strengthen our ongoing bilateral relations further,” he added.

Of the $ 4 billion in Sri Lanka-China trade last year, 93% were imports from China to Sri Lanka while 7% were exports to China from Sri Lanka.

WorldEx India Managing Director Rajesh Bhagat said: “The second edition of the China Products show has more than doubled in size and this year CMEC from China has brought more machinery companies to participate in the event. We believe Chinese machinery would help Sri Lankan manufacturing to become more competitive and this exhibition would create a bridge between Sri Lankan and Chinese businessmen to explore trade and investment opportunities. We believe that bilateral trade between Sri Lanka and China would be further expanded by trade events like this. This exhibition was widely supported by Sri Lankan trade bodies and also from the China side through the CCPIT (China Council for the Promotion of International Trade) and Trade Development Bureau of China. I am sure this exhibition will be very welcome by the Sri Lankan community.”

Besides machinery, the exhibition also focuses on providing solutions for the tourism industry as well as Sri Lanka’s growing retail sector. The products showcased this year include bathroom accessories, household electronic appliances, construction materials, hardware and machine tools, lighting and LED, consumer electronics, marble and stone products, art and art supplies, agricultural and pest control products, food products and machinery, home appliances, hotel supplies, houseware and home decor, furniture and interior products, etc..

The exhibition is organised jointly by the China Council for Promotion of International Trade (CCPIT Guangdong Committee), China National Machinery and Equipment Import and Export Corporation (CMEC) and Worldex Fiera Milano Exhibitions (Guangzhou) Ltd. for which the National Chamber of Commerce of Sri Lanka (NCCSL) extend its fullest support by joining in as the industry partner of the event.

NCCSL President Thilak Godamanna said: “This is really a valuable opportunity for Sri Lankan industrialists to work together. Sri Lanka and China always had a cordial relationship and this is a continuation of that. In fact these kinds of events provide encouragement to that relationship. We are happy to state that China has made a productive investment in Sri Lanka and as the National Chamber of Commerce we will always support and associate with such efforts to uplift the economy and industry of Sri Lanka.”

The China Products (Colombo, Sri Lanka) Exhibition will continue for three days at the SLECC in Colombo. It provides an ideal chance to explore a world of opportunities, to meet the right people with the right infrastructure, skills and knowledge brought together on a common platform.