SRI LANKA CHINA FRIENDSHIP
General Observations & Quotes
Under President Mahinda Rajapaksa, Chinese presence and influence in Sri Lanka have increased.He has visited China thrice since assuming office. Increase in bilateral interactions and exchange of visits.
Sri Lanka opened a consulateits second one in Chinain Chengdu, where Pakistan already has an active Consulate. The Chengdu Military Region coordinates Chinas military strategy in South Asia.
China and Sri Lanka are long standing friends. China never deserted Sri Lanka in its times of distress---Rajapaksa in April 2008 while inaugurating the construction of Sri Lankas National Theatre of Performing Arts to be built with Chinese assistance.
The friendly relationship between the two countries has stood long test and the two countries are tested friends. Sri Lanka has always firmly stood by and will never change its stance on one-China policyRajapaksa on September 4, 2009, while receiving a delegation of the Chinese Communist Party.
The Chinese Government endeavors to develop its friendship and cooperation with Sri Lanka on the basis of the Five Principles of Peaceful Co-Existence. Chinese enterprises are contracted to build the Hambantota port. Any vicious distortion of the normal business deal holds no water. Social stability, economic development and ethnic reconciliation of Sir Lanka serve the shared aspiration and fundamental interest of the Sri Lankan people. We sincerely hope this goal can be achieved at an early date ---.Chinese Foreign Ministry Spokesperson Ma Zhaoxu at his regular press conference on May 12, 2009.
Chinese assistance has grown fivefold in the last year to nearly $1 billion, eclipsing Sri Lankas long time biggest donor, Japan ---Palitha Kohona, Sri Lankan Foreign Secretary as quoted by the New York Times dated March 9, 2008
Bilateral Trade
Trade between the two countries has doubled over the last 5 years from US$ 660 million to US$ 1.13 billion, making China the second largest exporter to Sri Lanka and the 13th largest export destination for Sri Lankas exports.
"We have paid far too much attention to the export markets in the US and now we need to move towards the Asian giant China. We have had an over dependence in the US market for our exports for too long," Prof. A. D. V. De S. Indraratna, President, Sri Lanka Economic Association.
Sri Lanka exports coconut fiber products, natural rubber, tea, spices, precious and semi-precious stones and ready made garments to China. There has been a significant increase of Sri Lankan exports to China since 2000, mainly due to the bulky export of mineral sands as zicronium ores, coir fiber and electrical components etc. The exports of mineral sands rose from Rs. 10 million in 2001 to Rs. 226 million in 2008. Only 0.45 per cent of Sri Lankas total exports go to China, but 12 per cent of its total imports come from China.
Project AssistanceHambantota Port
The foundation for the construction of a modern port with Chinese assistance at Hambantota in southern Sri Lanka was formally laid in October, 2007. The construction actually started in January, 2008.
It is a 15-year project to be completed in stages. The entire project is estimated to cost US $ one billion. The present Chinese commitment is for the construction of the first stage only, which is estimated to cost US $ 360 million. China has agreed to give 85 per cent of this amount at concessional interest. The balance is being contributed by the Government of Sri Lanka.
The first stage of the 15-year (2008-2023) project is expected to be completed by the end of 2010. This stage envisages the construction of a 1000-metre jetty, which will enable the harbour to function as an industrial port for the import and export of industrial chemicals, fuel and heavy machinery. By 2023, Hambantota is projected to have a liquefied natural gas refinery, aviation fuel storage facilities, three separate docks giving the port a transshipment capacity and dry docks for ship repair and construction. The project also envisages that when completed the port will serve as a base for bunkering and refueling.
The draught (depth) of the new harbour will be 16 metres against 15 metres in Colombo. A 230 metre passage-entrance channel will be created at the breakwater which is 988 metres long on the west end and 311 metres long on the east end.
The Government hopes that as a refueling location Hambantota will have many advantages over the Colombo port or ports in South India. The construction has been undertaken by a consortium of Chinese companies headed by the China Harbour Engineering Company and the Sino Hydro Corporation.
The project doesnt have a separate consultant. The Sri Lanka Port Authority (SLPA) is functioning as the client-cum-consultant while the China Harbour Engineering Co Ltd is the contractor. In September, 2008, there were 328 Sri Lankans and 235 Chinese working at the site-engineers, administrative personnel and others. The present number is not known.
The first stage due to be ready by end 2010 will allow three ships to berth. The final stage, for which there is no offer of funding yet from China, is planned to accommodate more than 30 ships, which is the present capacity at Colombo.
Reliable reports say that while the Sri Lankan authorities want Hambantota to emerge as a modern port with better facilities and efficiency than any of the ports in South India, they do not want the present importance of the Colombo port to be reduced. Colombo presently has the reputation of being the most modern and most efficient port in South Asia. They want this reputation to be maintained. There is no proposal at present to set up container yards and cater to container ships at Hambantota.
The present Chinese interest is in the use of the docking and refueling facilities that would come up in Hambantota for their commercial and naval ships. There is no proposal at present for a Chinese naval base at Hambantota.
New Container Terminal at Colombo
Chinese port operator China Merchants Holdings (International) is negotiating with the Sri Lankan authorities a contract for the construction of a new container terminal at Colombo. The company has bid for the contract jointly with a Sri Lankan company Aitken Spence.
Maththala Airport--Hambantota
On November 27, 2009, Rajapaksa inaugurated the construction of Sri Lanka's second international airport at Maththala in Hambantota.
The new airport will be constructed on a plot of 2,000 hectares in Hambantota district at a cost of US$ 190 million. The Government of the People's Republic of China will provide financial assistance for the project with a soft loan through its Ex-Im Bank.
According to the Ports and Aviation Ministry, the construction of the airport will be completed in two phases. All basic facilities including runways, taxiways and parking facilities will be completed in the first phase to be completed by 2011. All other airport and aviation related facilities will be completed in the second phase. These include servicing and repairing centre for aircraft, hotels, pilot training centre, maintenance hub, private jet parking, and technical training centers. The Government hopes to commission the airport by the end of 2011 and land the first flight by December 2011.
Other Projects with Chinese Assistance
The construction of the Colombo--Katunayake Expressway.( US $ 248 million)
Improvement of the railways---US $ 100 million to be given by Chinas Ex-Im Bank. Agreement signed on March 10, 2010.
Norochcholai Coal Power Plant (US$855 million)
A flood protection system for Colombo suburbs of Kotte, Dehiwela-Mount Lavinia, Maharagama, Kesbewa and Moratuwa. ( US $ 59 million) To be given by China Construction Bank.
National Theatre of Performing Arts in Colombo ( US $ 21 million)
Sri Lanka's investment promotion agency, the Board of Investment, announced in July, 2009, it has signed a deal with China's Huichen Investment to manage a special economic zone dedicated to Chinese investors. Huichen will invest US $28 million in the zone in Mirigama, north of Colombo, to improve infrastructure in the first phase over three years. The company, a conglomerate that specialises in infrastructure development and does coal and iron ore mining, will also market the zone and attract Chinese investors.
More than 50 per cent of the funding received by Sri Lanka from abroad for construction and development projects since Rajapaksa came to power came from China.
"Since 2007, Sri Lanka has been trying to launch a communication satellite. China has agreed to provide financial and technical assistance, "Executive Director of the Institute of Policy Studies, Dr. Saman Kelegama was quoted as saying in November 2009. In May 2009, Priyantha Kariyapperuma, Director-General of the Telecommunications Regulatory Commission, had said that the Government had begun work on a space programme hoping to launch two communication satellites.
"The University of Surrey specializes in satellite technology having created about 35 satellites. They have made a presentation to President Mahinda Rajapakse and have entered into an agreement to transfer technology and knowledge to our universities, "he told the Island Financial Review. Kariyapperuma said a consortium of vice chancellors from universities with engineering faculties had been formed for this purpose. He said the Government planned to launch two communication satellitesa lower earth orbit satellite used mainly for images and a geo stationary communication satellite.
The two satellites will be used not only for communication purposes but also for disaster management, agriculture planning, irrigation planning, town/urban planning and coastal conservation. He said the low earth orbiting satellite could be financed with domestic funds particularly from the Telecommunication Development Fund. The private sector would also be called to contribute to the development of the two satellites.
And talk about poor, there are no country can beat india, you are the true poorest country in the world. Have a fun.
still what's more embarrassing the fact that Indians are the only ones complaining about this issue or the fact that I confused a Skorean guy with a chineese guy
