China proposes gold exchange in Sri Lanka
ECONOMYNEXT – China has proposed setting up an international gold exchange and a gem and jewellery hub in Colombo, Sri Lanka with an investment of 30 million US dollars, the Sri Lanka’s Ministry of Industry and Commerce said Thursday.
China’s state-owned Sanmenxio Jinqu Group which is backed by the world’s largest physical gold exchange, the Shanghai Gold Exchange, is proposing to invest in a high-rise which would house the exchange, retail stores, banks and entertainment facilities, the statement said.
“This is the first foreign facility proposed to be set up in Colombo, and it will also be an extension of China’s Belt and Road Initiative," Chairman of Sanmenxio Jinqu Group Xu Yujin said.
“A modern, state of the art gem and jewellery bourse will uplift Sri Lanka’s gem and jewellery sector in many ways and attract Chinese tourists too,” he said.
The Chinese firm will partner Batcha Gems, a Sri Lankan gem and jewellery supplier in China.
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"We propose a three party joint venture with Batcha Gems, the government of Sri Lanka and Sanmenxio Jinqu with an initial investment of 30 million US dollars," Yujin said.
The main feature of the proposed project is a tower or a multi-story building to house gold exchange, the Ministry of Industry and Commerce said.
It will also host an office for Customs and shops selling Chinese and Sri Lankan gems and jewellery and other merchandise.
Sri Lanka’s gem and jewellery exports grew 5.3 percent from a year earlier to 178 million US dollars in 2017. (COLOMBO, 26 July 2018)
Kithmina Hewage- Institute of Policy Studies