• China looks to seal FTA with Sri Lanka this year, wants talks resumed; says it will be beneficial for SL
• Ground-breaking ceremony of International Financial Centre of Port city slated for 1Q

Chinese Ambassador Qi Zhenhong

Assuring continued support, Chinese Ambassador Qi Zhenhong yesterday declared that no third party could derail China’s strong ties with Sri Lanka and expressed confidence that the island nation would overcome its temporary foreign reserves crisis. 

Speaking to a select group of editors and journalists soon after seeing off his visiting Foreign Minister Wang Yi at the airport following a brief 24-hour stay, Qi said Sri Lanka-China bilateral ties were only poised to grow stronger for the mutual benefit of the two countries and its people and that no third party could derail it.

Sri Lanka and China this year marks the 65th anniversary of diplomatic ties, as well as 72 years since the famous Rubber-Rice pact between the two countries.

Whilst expressing confidence that Sri Lanka has the resilience and wisdom to overcome temporary challenges, including its foreign exchange crisis, Yi said that China would continue to extend support as a “genuine” friend. He said that last year alone China’s central bank had extended a Yuan 10 billion ($ 1.5 billion) currency swap, apart from $ 500 million and Yuan 2 billion support from the China Development Bank. During Foreign Minister Wang’s visit, China signed an agreement to extend Yuan 800 million on technical cooperation in health and related sectors, in addition to 2,000 low-cost houses in Colombo. 

He said that China was also keen to resume talks for a Free Trade Agreement (FTA) which has already seen six rounds of negotiations. “We are open to discuss any concerns and China will be flexible so we can ensure early harvest for Sri Lanka,” he added. 

Yi said that with a Chinese market of 1.4 billion people to tap into, the FTA would greatly benefit Sri Lanka. “The FTA will also help Sri Lanka to become a sub-distribution-hub for Chinese firms to set up manufacturing operations and serve global markets.” The Ambassador added that low-income country Cambodia had greatly benefited from its FTA with China. 

He also said that the Port City project, the Marina Promenade which was opened yesterday by leaders of the two countries, would propel bilateral ties to greater heights in addition to heralding a new era. He said $ 1.5 billion had already been invested and a further $ 15 billion in foreign direct investments is envisaged from global companies as the Port city progresses.

“Port City isn’t a day-dream but is being realised day by day,” Yi said, adding that Forbes magazine had identified it as one of the top five cities of influence and importance in the future.  

Fresh boost for SL-China ties