Chinese investors to explore opportunities in Hambantota Free Economic Zone
The Executive Vice Chairman of the Asia Pacific Exchange and Cooperation Foundation, Xiao Wunan during a recent visit to Sri Lanka met with Sri Lanka’s Prime Minister Ranil Wickremesinghe and senior government ministers and discussed investment opportunities for Chinese businesses in Sri Lanka.
Wunan is an influential business leader from China and is also the Vice Chairman of the China Association of Social Economic and Cultural Exchange and International Chairman of Religion and Cooperation Organisation, United Nations.
He has told Sri Lanka’s state owned Daily News that increasing foreign direct investments (FDIs) from China and assistance for more infrastructure projects were among the main subjects discussed with the government of Sri Lanka.
He has stated that he was impressed with the Hambantota Free Economic Zone (HFEZ) concept and its close proximity to the international harbor, which permits companies to manufacture and export to the region and beyond. “The FTA with India and Pakistan would also help export over 3,000 items tax free, which is a major encouragement for Chinese companies to invest in the HFEZ.”
He has also stated that there is a huge demand for LED and Mobile spare parts and he would promote investors involved in these segments to look at the HFEZ for their future projects. “I have observed that Sri Lanka has graphite and other mineral deposits which are exported with almost no value addition and the LED and Mobile manufactures could use such raw materials for their process.”
“Chinese investors are also looking for opportunities to be involved in the transportation sector of Sri Lanka,” he has added.
Wunan who is also a Senior Consultant, Oxford Economics, London, has reportedly met with the senior management of the newly formed Confederation of Micro, Small and Medium Industries (CMSMI) and promised to send industrial manufactures from China for an industry exhibition which would be hosted in Colombo next year.
Meanwhile, Coordinator, Asia Pacific Trade Agreement Chamber (APTA CCI) Hui Dias Bandaranayake has been quoted as saying that Chinese companies are keen to do business with Sri Lanka due to its geographical advantage and also for the fact that the island is placed in China’s Belt and Road initiative.
OSL take:
Sri Lanka is an important location in the Indian Ocean region for China since it is an important country in China’s Belt and Road initiative. Therefore, Chinese interest in Sri Lanka has seen a growth in the past few years. The management of Sri Lanka’s Hambantota Port through a Chinese joint venture and the industrial zone located adjacent to the port will undoubtedly capture the attention of Chinese businesses/investors. Given the interest shown by Chinese businesses/investors in Sri Lanka local companies could look at forming partnerships/joint ventures with such entities and launch business ventures in the country.
| Article Code : | VBS/AT/06082019/Z_6 |