Sri Lanka’s Plantation Industries Ministers signs MOU with China’s Hainan Province to rejuvenate plantation sector
Sri Lanka’s Minister of Plantation Industries Navin Dissanayake has reportedly signed a memorandum of understanding (MOU) with Executive Governor of the People’s Government of Hainan Province Dr. Shen Danyang in order to rejuvenate the island nation’s ailing plantation sector
The MOU was signed in Beijing at the Second Belt and Road Forum for International Cooperation held at the China National Convention Centre, which was attended by the Chinese President Xi Jinping and over 37 national leaders.
Sri Lanka’s plantation sector comprises of tree crops including rubber, tea, coconut, cashew, sugar cane as well as related industrial value chains.
According to a local media report, during Stage I of the intervention, Sri Lankan rubber industry would be the main focus, taking the famous Rubber-Rice Pact (1952) as the point of departure.
While the RRP lasted for 30 years with diminishing value in later years, it is predicted that the new agreement, an integral project of the Belt and Road Initiative will provide immense benefits to both countries in terms of enhanced socio-economic benefits and increased international trade for numerous decades to come, the local media has reported.
Sri Lanka’s state owned Daily News states that the vision of the leaders is the creation of a unique Regional Rubber Corridor using Sri Lanka as the nexus between Hainan rubber industry, Sri Lankan rubber industry cluster and global markets.
The projects are to be designed based on the Sri Lanka Rubber Industry Development Master Plan which is a 10 year growth plan aimed at earning US$ 4-5 billion from the rubber industry.
Beginning June 2019, China will field competent teams to conduct project feasibility studies across the industry value chains with the participation of Sri Lankan private sector and government resource persons.
Minister Dissanayake has reportedly expressed his determination to use this agreement to take the Sri Lankan rubber industry to new heights.
In implementing the MOU, Sri Lankan rubber industry will work closely with the Hainan Rubber Industry Group (HRIG), a listed company with market capitalization of over US$ 4.2 billion.
OSL take:
The government of Sri Lanka is engaged in several programmes aimed at developing the country’s plantation industry. The MOU signed recently with the Hainan Province in China would give a boost to the programme as well. Therefore foreign businesses/investors could explore business opportunities in Sri Lanka’s plantation sector.
| Article Code : | VBS/AT/07052019/Z_4 |