President Mahinda Rajapakse met with China’s President and Commerce Minister and sought further concessions for Sri Lanka under the Asia-Pacific Trade Agreement (APTA). Chinese President Hu Jintao agreed to consider favourably President Rajapaksa’s request for further reduction of tariffs for Sri Lankan exports under the APTA. While Sri Lankan exports to China had projected a growth rate of 27 percent Deming reportedly acknowledged that the total volume of exports from Sri Lanka had the potential to increase further. He said that this could reduce the huge trade imbalance tilted in favour of China. The Sri Lankan Embassy in China in a statement said that Deming agreed to assist Sri Lanka to enhance its production capabilities and competitiveness. Sri Lanka had already submitted its offer list for the APTA round of negotiations. "Deming assured his support for an early conclusion of the 4th round of APTA negotiations with further concessions and market access opportunities for Sri Lankan exports," the Sri Lankan Embassy in China added. About 23 percent of Sri Lanka’s exports to China comprised of tea and the Minister agreed to favorably consider President Rajapakse’s request to accord further tariff concessions. The Chinese side agreed to facilitate Sri Lanka’s participation at identified trade fairs on a subsidised package. The President apprised the Chinese Minister of the special investment zone allocated in the Mirigama Export Processing Zone for Chinese entrepreneurs which will be inaugurated today. Deming said that Sri Lanka would be a preferred destination for relocation of many of the Chinese enterprises, especially in the textile and the light industries sectors. The Chinese Commerce Minister assured President Rajapakse that China would ensure uninterrupted funding of development projects undertaken by China in Sri Lanka. The Minister also ensured funding for three new development projects; the Colombo Katunayake Expressway, Puttalam Coal Power plant (Phase II & III) and the Hambantota oil tank and bunkering project. President Rajapakse met Li Ruogu, the President of the EXIM Bank of China, and expressed his satisfaction over the speedy funding provided for the Hambantota Port Project. He discussed the need for further assistance for the next phase of the Puttalam Coal Power Project, the Colombo-Katunayake Expressway and also the Hambantota Bunkering. Ruogu said that the bank would expedite funding processes for these projects. President Rajapaksa also met with CEOs of a few leading construction companies that have undertaken development projects in Sri Lanka, the Sri Lankan Embassy in China said. Progress of the Hambantota Harbour project, the second phase of the Norochcholai project, the US$ 23 million Arts Theatre in Colombo and the Colombo-Katunayake Expressway were the topics of discussion. Finance Secretary Dr P B Jayasundera, Gamini Senerath Additional Secretary to the President and Sajin de Vas Gunawardena, Coordinating Secretary to the President were present at these meetings and bilateral discussions. An official of the Export Development Board told the Island Financial Review that total exports to China in 2007 amounted to US$ 36 million (0.5 percent of total exports to all countries) and imports amounted to US$ 921 million (8 percent of total imports from all countries). |
