Over 2,500 companies from China for H’tota

Sri Lanka can attract over 2,500 Chinese companies to Hambantota, Central Bank of Sri Lanka Governor, Dr. Indrajit Coomaraswamy said.

Speaking at the Annual General meeting of the Sri Lanka Ceramics and Glass Council at the Cinnamon Grand he said that he hoped that Sri Lanka will be able to facilitate infrastructure for them. “This is by way of offering them lands and an enabling environment.”

The Governor explained that with the Chinese economy growing, the cost of producing in China to increase fast.“Due to this many Chinese companies are shifting capital and most of these companies are willing to use Sri Lanka particularly Hambantota as a base.”

The government is ready to facilitate these companies which in turn will make Hambantota, a city with over 300,000 to 400,000 population in the next five to ten years. Development Strategies and International Trade Minister Malik Samarawickrama said China had wanted 15,000 acres to set up industrial zones in Hambantota. China also wants both Hambantota Port and Mattala Airport on a long term lease. The Central Bank Governor said Sri Lanka could expect a one billion dollar inflow to the economy through the lease of an 80 percent stake in the Hambantota Port.

The fact that Sri Lanka is included in China’s Silk Route as a ‘station’ on China’s ‘One Belt One Road’ initiative has given another plus point for Chinese companies to look at investing in Sri Lanka, the Governor said. The economic benefits of this will also trickle to neighbouring districts like Moneragala and Uva areas, which are among the least developed in the region.

With the change of government Sri Lanka has good government-to-government relations with countries like China, Japan, Korea and Singapore which are economically stable. “This too could be exploited to draw FDI’s to Sri Lanka.”

The Governor said governments in these countries has a hold on some of the private sector and when influenced to invest in countries like Sri Lanka they (private companies) oblige unlike in western countries.”

Dr.Coomaraswamy however said that the country would have to market themselves skillfully to grab this opportunity.