SL ready for FTA with China

Sri Lanka is ‘very keen’ and moving ahead on the Free Trade Agreement (FTA) with China, assured a top Lankan Minister on 30 March in Colombo.

“Our Government is very keen on the FTA and continuing its work on it with no change” assured Minister of Industry and Commerce Rishad Bathiudeen on 30 March in Colombo.

Minister Bathiudeen was addressing the visiting six member official Government Delegation of Yunnan Province, PR China to Sri Lanka, Maldives and Singapore when they met him in Colombo on 30 March. The delegation is led by Chinese top official Gao Shuxun (Senior Advisor to People’s Government of Yunnan Province), who was a former Vice-Governor of Yunnan. Yunnan borders Vietnam, Laos, Burma-and through Vietnam, has steady trade with the ASEAN bloc. 

Senior Advisor Shuxun handed over the official invitation extended by Yunnan Governor Chen Hao for the 24th Kunming Fair in June to Minister Bathiudeen and said: “Last year Yunnan’s trade with Sri Lanka was $83 million while Sri Lanka’s exports to Yunnan were just half-a-million dollars. Yunnan investors have invested in four projects in Sri Lanka by 2015 Yunnan’s contracted projects with Sri Lanka were valued at a total of $390 million. Sri Lankan investors have also invested in one enterprise in Yunnan to the value of $60,000. We are happy to observe increasing participation by Lankan businesses and exporters  in the Kunming Fair and today we convey you the official invitation of Yunnan Governor inviting you to take part in the 24th Kunming Fair and 4th China South Asia Expo to be held in Yunnan capital Kunming from 12-17 June. I also suggest that Yunnan–Lanka cooperation can focus on heavy infrastructure projects including railways and airports, bio-pharmaceuticals, fishery and high elevation agriculture/plateau agriculture.  In particular, Sri Lanka and Yunnan need to join together to exploit the growing demand for maritime, fishing and seafood cooperation in such inland Provinces as Sichuan and Quinghai. Sri Lanka should export more seafood to Yunnan’s importing companies using the convenient air-links with Kunming, which we shall greatly welcome. There is huge potential in this that Sri Lanka is not working on! The South Western Chinese market is huge and tremendous potential exists for Lankan products. The annual Kunming fair opens these doors to Sri Lankan businesses and we want to see you there.” 

Sri Lanka’s trade with Yunnan in 2015 reportedly reached $80 million. According to the Department of Commerce, Sri Lanka’s overall trade with China in 2015 stood at $4 billion, increasing by 12% from 2014. Sri Lanka’s exports to China YoY increased by 69% in 2015, and imports rose by 9%. 

“China-Sri Lanka relations are historic and long standing. Silk route connectivity is only one part of this long history. China is one of the biggest product suppliers to Sri Lanka as well. Of Sri Lanka’s $4 billion  total trade China in 2015, $3.7 billion were imports from China!  Our Unity Government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe is very keen on the FTA and continuing its work on it with no change. Joined by the International Trade Ministry of Sri Lanka, my Industry and Commerce Ministry is closely working with Chinese representatives to make the FTA a reality. In fact, a Sri Lankan VVIP shall be visiting China possibly as early as next week” said Minister Bathiudeen, and added: “I have attended the past three Kunming Fairs, leading the Lankan delegation in each visit. I cannot forget the warm hospitality extended to me by the Yunnan government during these tours. Sri Lanka has been one of the best partners in these expositions. This year too we will bring a strong Lankan delegation to the 24th Kunming Fair and the fourth CSAE in June. Yunnan is the closest Chinese Province to South Asia and Sri Lanka. With less than 5 hours, the Colombo-Kunming flight is one of the shortest air travels to China from here. I am pleased of your interest to partner in our high elevation agriculture, bio-pharmaceuticals, heavy infrastructure and seafood projects and I invite your investors to partner with us and ready to extend our fullest assistance.”

Minister Bathiudeen and Senior Advisor Shuxun also discussed of Sri Lanka’s successful previous participations at the Kunming International Fair and lessons learnt, at the 30 March meeting.