Sino-Sri Lanka Joint investment Committee
• China-Sri Lanka Joint Committee to oversee investment.
• Chinese Ambassador Yi Xianliang has expressed support for an effort to establish a Sri Lanka- China Joint Committee which will include investment on “key ventures” including city construction and technical training, the Chinese embassy said in a statement yesterday.
• Development Strategies and International Trade Minister Malik Samarawickrama recently announced that Chinese companies were seeking 15,000 hectares of land to establish a special economic zone.
• Prime Minister Wickremesinghe welcomed Chinese enterprises to invest in the southern areas and answered specific questions raised by Chinese enterprises such as land demand.
Prime Minister Ranil Wickremesinghe initiated the idea of the ‘Colombo-Kandy-Hambantota Corridor’ by dint of Colombo Port City, Hambantota Habour, Bandaranaike International Airport and Mattala International Airport.
He expressed these views when Chinese Ambassador Yi Xianliang visited Hambantota and held an on-the-spot meeting with him on the construction of Sri Lanka-China Industrial Zone.
During the meeting, the 2 sides deeply explored the land situation in the industrial zone area, construction progress of the industrial zone and envisagement of Chinese enterprises.
Wickremesinghe expressed his views on establishing a Sri Lanka-China Joint Committee, building a new city and carrying out vocational and technical training in the industrial zone.
Ambassador Yi commended the Prime Minister for the on-the-spot meeting, and expressed their determination to support and take part in the establishment of Sri Lanka-China Joint Committee, new city construction and vocational and technical training.
He emphasized that the Hambantota Industrial Zone was an industry zone of both countries with comprehensive and multiple functions, which had great significance for China-Sri Lanka cooperation and the development of Sri Lanka.
He said there was no doubt that the industrial zone would promote all-around development of Sri Lanka in the near future.
Ambassador Yi also inspected projects of Mattala International Airport, Hambantota Habour and Conference Center, learning about the progress and plan of the projects.
He requested the Chinese enterprises to advance the projects on time, maintaining high quality.
Wickremesinghe welcomed Chinese enterprises who are interested in investing in the Southern Part of Sri Lanka and answered specific questions raised by Chinese enterprises including land availability.
Prime Minister Ranil Wickremsinghe had proposed establishing a Sri Lanka-China Joint Committee that would move forward on specific projects including building a new city and carrying out vocational and technical training in the industrial zone.
Ambassador Yi appreciated the Prime Minister conducting the highly efficient on-the-spot meeting, and expressed China’s determination to support and take part in the establishment of Sri Lanka-China Joint Committee, new city construction and vocational and technical training,” the statement released by the Chinese embassy added.
OSL Take:
Overseas lenders committed US$855.4 million to fund development projects in Sri Lanka during the first 4 months in 2016, “with China remaining the biggest source”, accounting for over half the funding, the Finance Ministry said.
This was through 8 loan agreements for US$ 727.5 million (or about Rs. 103, 966 million) and 9 grant agreements for US$ 127.9 (or about Rs. 18, 399 million) from foreign governments and lending agencies, it said in its mid-year fiscal position report.
“Big Projects” included extension of Southern Expressway Section II project (US$ 360.3 million) funded by China Exim Bank, Greater Matale Water Supply Project (Eeuro 123.7 million) funded by Credit Agricole of France, Small and Medium- sized Enterprises Line of Credit (US$ 100 million) funded by ADB, and integrated rural development in the Central and Uva Province (Euro 30 million) funded by the European Community.
The Airport and Aviation Services Ltd has obtained US$ 402.7 to implement Bandaranaike International Air Port Development Project Phase II Stage II from the Government of Japan during the period.
Total disbursements from commitments already made by various bilateral and multilateral development partners during first four months of 2016 was US$ 311.7 million (Rs. 44,894.47 million).
Of this, project loan disbursements accounted for US$ 301.9 million (about 97 percent of total disbursement) while the grants accounted for US$ 9.95 million.
In 2015 total disbursements from commitments by bilateral and multilateral lenders during first quarter of 2015 was US$296.24 million (Rs. 39,233.93 million).
Of this, project loans accounted for US$277.53 million, 93% of total disbursement and grants the rest.
Around 44% of the total disbursement during first quarter of 2015 was mobilized for the expressways, road and bridges sector.
With the open welcome to Chinese investors and enterprises by the PM to invest in the Southern Part of Sri Lanka, OSL is now registering the interest of potential parties and you too could consult the biz-friendly OSL Team to learn more about the total projects’ scope and the way to fast-track forward.
| Article Code : | VBS/AT/05082016/Z-2 |