Free Trade Agreement in the pipeline

June 1, 2013, 6:32 pm


External Affairs Minister G.L. Pieris yesterday described President Mahinda Rajapaksa's State visit to China as the most successful ever that has upgraded already warm relations between the two countries into a ``Strategic Cooperation Partnership.''


Pieris who was a member of the president's delegation said there had been meeting with all three leaders of the People's Republic - the president, the vice-president and the prime minister and increased access of Sri Lankan products to the vast Chinese market will be a natural consequence of the discussions held and agreements signed.


``A total of 13 agreements were signed in the course of the visit in the presence of the presidents of both countries,'' the minister said. ``It's the largest number I've ever known.''


Pieris noted that during an address made by the Chinese President Xi Jinping during the course of the visit, the Chinese leader had said that China strongly opposed other countries interfering in Sri Lanka's internal affairs ``on the pretext of human rights.''


He said that the PRC was conscious of the huge trade balance in China's favour and was keen on redressing this by giving Lankan products entry into the vast Chinese market.


A Free Trade Agreement had been agreed to in principle and joint committees are being appointed to bring this to fruition as quickly as possible.


Some of Sri Lanka's sophisticated industries including apparel/garments, tea, value added rubber, gems and jewellery, spices and light engineering products will enjoy new opportunities in the light of the arrangements that will follow.


Regarding the USD 1,500 million new Colombo-Jaffna expressway through Kurunegala, Pieris said that Chinese private capital will fund the project. This was an expression of confidence in Sri Lanka political stability and economic potential.


With tourism being the country's most visible growth area, China has indicated her intention of increasing the number of Chinese visitors from the present 20,000 per year to 100,000 by 2015.


China's intention of coming into the established bond market here has also been expressed and Chinese investment in the public sector will cover the health and education sectors. Upgrading of the Colombo National Hospital and the Colombo North General Hospital at Ragama, the Moratuwa University and establishing a National Business School in the southern suburbs of Colombo have been discussed.


China also intends investing in the fisheries sector and will be represented at the Commonwealth Business Forum that will run alongside the Commonwealth Heads of Government (CHOGM) meeting in November for which non-Commonwealth participation has been invited.


The minister said that the new Colombo - Katunayake expressway will be opened before CHOGM.


``There was very warm rapport between the leaders,'' Pieris said. ``Defence, maritime security and aerospace in which China has a lot of expertise were among the areas covered.''


At a press conference at the end of the visit, Pieris responded to question from a Western news agency on various perceptions on the greatly strengthened relationship between Sri Lanka and China by saying it is a very old relationship which began in the trade sphere in the early fifties with the Rubber - Rice Pact even before there were diplomatic ties were established between the two countries.


``There is no exclusivity in these relationships,'' the minister said. ``There is no reason for anybody to be apprehensive.''