Sri Lanka says keen on China free trade deal

Sri Lanka is keen to reach agreement soon on a free trade deal with China, its foreign minister said on Tuesday, describing Beijing as a close friend.

Sri Lanka Foreign Minister Tilak Marapana told a reception in Beijing to mark the 60th anniversary of establishing diplomatic ties that the two countries’ friendship went back centuries.

“Sri Lanka is very keen to reach an early conclusion to the free trade agreement with China in the near future that would expand more trade avenues for both countries,” Marapana said.

“China has been a reliable and important partner in our drive towards economic development and Sri Lanka is appreciative of the country’s commitment and assistance,” he added.

China was one of the first countries to help Sri Lanka in post-war reconstruction after the 2009 end of its 26-year civil war.

In July, China Merchants Port Holdings and the Sri Lanka Ports Authority signed an agreement here to develop the Hambantota Port in southern Sri Lanka.

Under the deal, the Chinese party will hold a 70-percent stake in two joint ventures to be launched to take charge of the commercial and administrative management operations of the port. After 10 years, the Sri Lankans will gradually purchase an additional 20 percent stake, resulting in the two parties owning an equal share of 50 percent each.

“Sri Lanka is deeply appreciative of China for being a true and trusted friend during our times of need,” Marapana said.