Sri Lanka, China spice up stronger ties

Friday, 21 March 2014 04:30 - - {{hitsCtrl.values.hits}}

Two countries finalise joint feasibility study of FTA Sign $ 300 m financing for rehabilitation of priority roads in seven provinces Sri Lanka and China have further cemented strong ties by agreeing on two key developments recently. The finalisation of the joint feasibility study on the proposed Sri Lanka-China Free Trade Agreement (FTA) was jointly announced by Ministry of Finance and Planning Secretary Dr. P.B. Jayasundera and Assistant Minister of Commerce of China Wang Shouwen during their official meeting in Beijing on 11 March. The finalisation of the Joint Feasibility Study opens the avenue for the discussions on the Free Trade Negotiations, expected to be commenced soon.

During the State visit of President Mahinda Rajapaksa to China in May 2013, a Memorandum of Understanding (MOU) on the establishment of a joint working group on trade to study the feasibility of the Sri Lanka-China FTA was signed between two countries. Accordingly the Joint Feasibility Study on FTA commenced in August 2013. Dr. Jayasundera stated that the proposed FTA would bring substantial economic and trade benefits to both countries while strengthening the friendly relationship that both countries have been maintaining from historical time. He recalled the Rubber Rice Pact which was signed in 1952, even before the official diplomatic relation between two countries established. Dr. Jayasundera expressed the hope that the FTA would be implemented at an early date. Trade between Sri Lanka and China has increased in the recent past, reaching US$ 3.6 billion in 2013 from US$ 1.1 billion in 2006. China has become one of the major development partners of Sri Lanka during the past, especially in the field of infrastructure projects. In addition to the conclusion of the JFS of FTA, a Loan Agreement of US$ 300 m was signed between the Ministry of Finance and Planning and the China Development Bank for the rehabilitation of priority roads in seven provinces. Rehabilitation of 250 km of these roads will improve the road conditions and reduce the travel time of the commuter and vehicle maintains cost in addition to ensuring connectivity of the national road

network. Sri Lanka’s Ambassador to China Ranjith Uyangoda, senior officials from the Ministry of Finance and Planning, the Department of Commerce and the Embassy of Sri Lanka in Beijing were associated in the discussions.