Chinese Think Tank perturbed by delay in Port City, FTA

Saturday, 28 November 2015 00:00 - - {{hitsCtrl.values.hits}}

By Charumini de Silva in Kunming, China

A Chinese think tank yesterday expressed concern over the delay in recommencement of the Port City project as well as finalising the proposed Sri Lanka- China Free Trade Agreement.

Institute of South Asia Studies Deputy Director Prof. Yang Siling said Sri Lanka should look at policies that could maintain the investment agreements on a consistent basis despite internal and external factors that will hinder the development process of the country.

Commenting on the much talked about Chinese investment, the $ 1.5 billion Colombo Port City which remains under review since the assumption of duties by the new Government, Prof. Siling said China is concerned about getting into agreements in the future, pointing out that it was a huge risk and a loss for both countries.

“In the future, China will be very hesitant to make such kind of decision,” Prof. Siling told a group of visiting Sri Lankan journalists in Kunming, China.

Noting that they understood that there had been internal (political) and external (other countries) factors that led to the suspension of the project, he said that they were very much concerned about it as it was a huge investment.

“Sri Lanka’s strategic location has caused negative influence from other countries,” he opined.

However, Prof. Siling stated that China and Sri Lanka have enjoyed a strong relationship and it was important to understand the common interest that would benefit the two countries in order to avoid such situations arising in future.

He further said that although the China-Sri Lanka FTA was supposed to be completed by mid year, this year, nothing has taken place thus far apart from initial discussions.

“There has been no update about the China-Sri Lanka FTA, but it was expected to be implemented by middle of this year,” he recalled.

Commenting on maritime security, Prof. Siling said that China conducts a lot of maritime research in Indian Ocean countries including Sri Lanka.

At the moment India, Japan and the US are in close cooperation on maritime security in the Indian Ocean and it is an area in which Sri Lanka could play a significant role as well.

“We see that Sri Lanka can play a key role in maritime security, especially because of its geographical location. We need to promote such cooperation and promote regional cooperation,” Prof. Siling added.