By: Staff Writer
March 02, Colombo (LNW): China has once again extended its financial and strategic support to Sri Lanka, providing much-needed economic relief through credit lines and grants.
These measures aim to help the island nation stabilize its economy, which has been struggling with a severe financial crisis.
A longside financial aid, Chinese investments in infrastructure, energy, and trade continue to play a crucial role in Sri Lanka’s long-term economic recovery.
China’s investment strategy in Sri Lanka has consistently focused on long-term benefits, even at the cost of short-term financial risks.
A notable example is the Hambantota Port, where a Public-Private Partnership with China Merchant Port Group was established in 2017.
Similarly, the Colombo Port City project highlights China’s commitment to large-scale investments, despite criticisms. These initiatives are seen as key drivers of sustainable economic growth.
The recent visit of President Anura Kumara Dissanayake to Beijing reinforced China’s commitment to Sri Lanka.
During the visit, 15 agreements were signed, covering economic development, education, media, and culture, aligning with China’s Belt and Road Initiative and Sri Lanka’s 2030 digital economy goals.
These agreements underscore China’s patient investment approach, designed to yield long-term economic benefits.
In another significant development, China’s Triumph Group, in partnership with local company Dilmah, is set to begin mineral processing operations in Aruwakkalu.
The project, approved by Sri Lanka’s Board of Investment, will be managed by Puttalam Ilmenite Ltd., which holds exclusive rights to mineral sands.
Triumph Group is a subsidiary of the China National Building Materials Group (CNBM), a Fortune 500 company with assets exceeding $87 billion and annual revenues of over $51 billion.
The minerals sector presents a valuable opportunity for foreign investment and industrial expansion in Sri Lanka.
However, issues such as policy instability, bureaucratic inefficiencies, political interference, and corruption have hindered the sector’s growth. A strategic foreign partner with expertise and a long-term vision is essential to ensure sustainable development in this area.
Despite securing government approvals, the Aruwakkalu mineral project has encountered difficulties due to access restrictions.
The land, controlled by the Sri Lanka Cement Corporation, requires official clearance for mining operations. In the past, such approvals have been influenced by political bargaining, delaying investment progress.
A petition regarding this issue is currently under review by the Supreme Court of Sri Lanka, following reports from
Transparency International and the Human Rights Commission. Allegations suggest that a former Sri Lanka Cement Corporation chairman, under political influence, granted mineral rights to Asha Minerals—an inexperienced company—without proper authorization.
The Attorney General has since intervened, objecting to the agreement, and the new government is expected to address these irregularities.
With the new administration’s commitment to fighting corruption and improving governance, the public eagerly awaits reforms that will unlock the true potential of the mineral sands sector and other industries.
As expectations rise, Sri Lankans hope that the government will act swiftly to eliminate corruption and create a more transparent and prosperous economic environment.
