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China to pursue third country investment to Sri Lanka’s Port City, Hambantota zone

ECONOMYNEXT – China will work with Sri Lanka to bring third country investments to Colombo Port City and Hambantota Special Economic Zone, the People’s Republic’s Ambassador Qi Zhendong had told the island’s state minister for regional co-operation Tharaka Balasuriya.

Ambassador Qi had met Minister Balasuriya on April 01.

“The Ambassador of China reiterated their commitment to work together to pursue investment and business opportunities with third-party countries in the Colombo Port City and the Hambantota Special Investment Zone,” the Foreign Ministry said in a statement.

Minister Balasuriya had also thanked China for voting against a UN resolution that called for a reduction in human rights violations in Sri Lanka and to preserve evidence of current and past violations.

The Colombo Port City is a flagship foreign investment project by China Harbhour Engineering group which is seeking up to 15 billion US dollars in foreign investments for land reclaimed from the sea.

Investors and workers will be protected from real effective exchange rate targeting (competitive exchange rate) and other attempts at domestic monetary instability through dollarized salaries and is also hoping to have a dollarized offshore financial centre.

The Port City will be run by a commission which can give up to 40-years of tax breaks.

The first large investment in the Colombo Port City will be done by CHEC where Sri Lankan collaboration is also expected.

In Hambantota, a Chinese tyre firm has announced an investment. (Colombo/Apr03/2021)

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