Chinese firms tapping into Sri Lanka market

 2014-03-05

COLOMBO -- Twenty-three companies from Zhongshan, China are seeking business opportunities in Sri Lanka' s private sector with focus on light industries, an official said Tuesday.

The Chinese business delegation was led by Zhongshan Municipal People's Government Deputy Secretary General Cen Hongkai.

The delegation comprises government officials and representatives of 23 private companies to further strengthen links with Sri Lankan companies. Targeted products and services are chemical, lighting, import and export, manufacturing of home appliances, plastic, trade andlogistics, electrical equipment, vacuum engineering, technology and plastics.

The Chinese companies were briefed on the investment climate in Sri Lanka and encouraged to take advantage of Free Trade Agreements with India and Pakistan that allow duty-free exports from the island.

"At present there is $20 million of imports from Zhongshan to Sri Lanka but only about $2 million of exports from Sri Lanka," Cen told the gathering insisting "great potential" exists for trade development between the two countries.

Chinese companies could use Sri Lanka's workforce for manufacturing, ample raw materials for making glass and use cleared land in the former war-torn areas in the north and east for export of plants and flowers.

"The proposed Free Trade Agreement (FTA) with China, which is expected to be signed later this year will also provide new opportunities for trade promotion," Sri Lanka-China Business Council President Navindra Abeysekera said.

Zhongshan trade topped $43 billion in 2013, attracting $12 billion in foreign direct investment.

Despite a population of about 3.14 million people, Zhongshan enjoys trade cooperation with about 200 countries and over 30 Fortune 500 companies operate there.