Sri Lankan firms get banking facilities in Chengdu

(EconomyNext) – Sri Lankan companies have been given the facility to register themselves in Chengdu, emerging as a big economic and transportation hub in western China, and allowed to operate bank accounts which makes repatriation of funds easier, an official said.

"When companies are registered there, they can work independently, which is a most important thing, instead of having to have Chinese associates," explained Nihal Aluvihare, President of the Sri Lanka China Trade and Investment Promotion Chamber.

Foreign companies face difficulties in repatriating profits from in China, which last year overtook Japan to become the world’s second-largest consumer economy.

China has a highly regulated system of foreign exchange controls which means funds flowing in and out of China are tightly controlled and require tax clearance certificates and are subject to other red tape.

Aluvihare said the Sri Lanka China Trade and Investment Promotion Chamber has negotiated with Chinese authorities in Chengdu, the capital of Sichuan Province, to get better access for Sri Lankan firms.

"Once a company is registered there, they (Chinese authorities) will allow them to open a bank account. This will enable them to do easier fund transfers."

He said his chamber was helping firms to do more business in Sichuan Province, the richest province in central and western China.

The south-western city of Chengdu has grown rapidly in recent years and is now reported to have more than three million private cars, second only to the number in Beijing.

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