China can be a “big bully,” says top bureaucrat

A top bureaucrat this week insisted that the stalling of talks between Sri Lanka and China authorities was inevitable since giving in would hurt Colombo in the long run and cited Beijing as a “big bully” in this respect.

Export Development Board Chairperson Indira Malwatte in an interview with the Business Times on Thursday at her office in Colombo said that “They ( China) will try to be a big bully as much as possible” in trying to get the deal on the Free Trade Agreement (FTA) between the two nations more favourable to them.

She explained, “Sri Lanka did not agree to the time period to reduce the import duties for 10- 20 years since that could have affected Sri Lanka.”

Under the FTA if this is agreed upon it could affect the local industries in Sri Lanka, Ms. Malwatte noted adding that in this respect the government has plans to have a trade adjustment package.

This trade adjustment package would ensure that the local industries would be assisted so that they would not be affected by this type of trade deal but noted that this would take time.

The Chairperson insisted, “We cannot give in just because we are in debt,” adding that Sri Lanka currently owes China money as it has been involved in a number of key infrastructure projects in the country having built ports, roads and power stations.

On the other hand the trade agreement with India is moving, she said adding that “We have to look outside and take advantage of Asia’s growth.”

With the fast increasing middle income group in Asia countries like Sri Lanka need to take to bilateral arrangements with Asian states and in this context give confidence to exporters and buyers that we need the FTA.