China-Sri Lanka economic ties to enter golden era

Booming economic and trade relations between China and Sri Lanka is expected to enter a golden era, as the latter is an important participant and major beneficiary of the 21st Century Maritime Silk Road initiative.[Special coverage]

The two nations are anticipating more cooperation and closer ties in trade and economy with the upcoming Sri Lanka visit by Chinese President Xi Jinping, who proposed the initiative of the 21st Century Maritime Silk Road last year.

For the Indian Ocean island country that connects sea routes of Asia, Africa and Europe, China has emerged as the largest foreign direct investor, accounting for one fourth of the inflows in 2013, according to Laskshman Abeywardhana, Sri Lankan minister of investment promotion.

Loans and investments from China have played a significant role in Sri Lanka's post-war reconstruction, Abeywardhana said in an interview with Xinhua on the eve of Chinese President Xi's visit.

Direct investment from China is not only contributing to foreign exchange reserve and job creation of the country, but also generating considerable benefits through technology transfer and development, he said.

The minister said projects of 14 Chinese companies registered at the Board of Investment of Sri Lanka has generated more than 2, 500 local jobs.

In Sri Lanka, a number of large projects funded by Chinese enterprises are under construction, as Sri Lankan president Mahinda Rajapaksa has put much efforts in turning the nation into a global maritime logistics center and a world-class harbor and goods distribution center.

Chinese enterprises have undertaken construction of mega infrastructure projects in Sri Lanka, like the Hambantota Port and Colombo South Harbor, which are likely to change the dynamics of the Sri Lankan economy and boost its future development.