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Sri Lankan president calls summit ‘great success,’ seeks closer China ties
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DURING President Mahinda Rajapaksa’s visit to China in 2013, Sri Lanka and China upgraded their ties to a strategic cooperation partnership. Chinese President Xi Jinping pledged to maintain high-level exchanges and expand cultural links with Sri Lanka during his meeting with Rajapaksa on May 22.
In March, the two countries finalized a joint feasibility study on a China-Sri Lanka Free Trade Agreement (FTA). The FTA negotiations are expected to be launched in the near future.
At the meeting on May 22, President Xi called Sri Lanka an important partner in building the 21st century Maritime Silk Road and the Asian Infrastructure Investment Bank.
In line with this Maritime Silk Road initiative, the Sri Lanka Embassy in China is coordinating with the Chinese authorities to enter into a Customs Cooperation Agreement, mainly to promote the Colombo and Hambantota ports as transshipment hubs for shipments from other South Asian countries to China.
In terms of trade, Sri Lanka was the largest black tea exporter to China in 2013, with an aggregate value of US$27 million. Garments have become another major export to China from Sri Lanka. On the other side of the ledger, Sri Lanka imports fabrics, vehicle spare parts, machinery, chemicals and so on, from China.
For its part, China has invested in Sri Lanka in such areas as food processing, deep sea fishing, rubber products, manufacturing of motorcycles and bicycles, mini-hydro power generation plants and the apparel and textile sector.
During President Xi’s meeting with his Sri Lankan counterpart, he encouraged Chinese companies to invest in industrial parks, economic zones, power, highways and railways in Sri Lanka.
Sri Lanka is also embarking on an ambitious campaign to lure Chinese tourists. Over the years, China has become the fourth-largest source of foreign tourists for Sri Lanka. There will be a large promotional event about Sri Lanka late this year in Shanghai, according to the Sri Lankan Consulate General in Shanghai.
As a result of the two countries’ long tradition of cultural cooperation and people-to-people contact, China and Sri Lanka will soon decide on a Sri Lanka Year in China, to be followed by a China Year in Sri Lanka. Shanghai Daily reporter Ni Tao briefly interviewed President Rajapaksa on the sidelines of the Conference on Interaction and Confidence-Building Measures in Asia (CICA), held in Shanghai last week.
(Information courtesy of Xinhua and Sri Lanka’s Consulate General in Shanghai)
Q: Can you comment on the results of the CICA summit?
A: Yes, I think it was a great success. All the members were happy about the proposals (that President Xi put forward), most remarkably the part referring to terrorist threat and stability, because he mentioned that we must have a win-win situation for every country.
Q: Will Sri Lanka consider becoming a member of CICA?
A: Last year we joined as an observer state. In the future we might join it (as a full member). We are an Asian country, and have the right to join it. And we also suffer terrorism.
Q: What do you think of the relationship between Sri Lanka and China?
A: It’s getting stronger and stronger. I’ll read you some statistics. In 2013, Sri Lankan exports to China totaled US$130.8 million, while imports from China totaled US$2.95 billion. So the business relationship is strong.
And a lot of investments are coming. And we are building a new port city in Columbo. And tourism is of course increasing. The number of Chinese tourists coming to Sri Lanka was about 54,000 last year. In 2016, we hope to raise that figure to 275,000. So we want publicity for Sri Lanka.
Q: One of the themes of the CICA summit is the initiative of reviving the Silk Road and building a Maritime Silk Road. What is your view on this initiative and Sri Lanka’s role in it?
A: I think it is important to all the countries and especially to us, because we are in the sea route. We are building a new port, called Hambantota, and also an airport, so ships will pass through it. So the (initiative) is very important and good for our country. Trade relations hinge on connectivity.
Q: How many Chinese companies have set up operations in Sri Lanka?
A: There are about 15 main companies, like China Harbor Engineering Company and Huawei.
Q: What do you think Shanghai can do to further the economic ties with Sri Lanka?
A: First of all, the officials and the people must come to Sri Lanka, see for themselves whether there are any opportunities to invest in Sri Lanka. And we must exchange business delegations and chambers of commerce.
Q: How about cultural ties?
A: Yes we have our rich culture.
The religious and education aspects are also very important. Of course students and tourists can come here and see our country.
Q: Do you think there is an Asian spirit that brings Asian countries together?
A: Why not? We have a rich heritage, Asian heritage. All the religions in the world are from Asia — Hinduism, Buddhism, Christianity, Islam.
Q: Does CICA embody that Asian spirit?
A: Yes, very much.
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