Sinopec, the giant oil company with over 27,000 service stations in China, has entered into an agreement with the Beijing Sri Road Connection Trade Company Ltd., during the Shanghai CIIE, to import and market Sri Lanka Food and Beverage products at their convenience stores. The contract is worth over $ 0.8 million.
The fifth China International Import Expo (CIIE) in Shanghai was held from 5 to 10 November. There were two Sri Lankan pavilions; Food and Beverage and the Gems and Jewelry section.
The China – Sri Lanka Association for Trade and Economic Cooperation voluntarily took charge and organized the Sri Lanka pavilion with the support of the Embassy of Sri Lanka and member companies of the Association and others.
This is the fifth time that Sri Lanka has participated, maintaining a presence at the event. This presence is considered essential since companies which participated in the CIIE were able to achieve remarkable success with daily sales at the pavilion topping RMB 500,000 and over 160 trade inquiries.
The agreement between Sinopec and Beijing Sri Road will facilitate further expansion of Sri Lanka F&B products in the lucrative Chinese market. Beijing Sri Road Connection Trade Company CEO Chiranjaya Udumullage, and Sinopec International Sales Deputy Manager Wang Qian signed the agreement.
The CIIE is the largest trade Fair in China for global companies to access the biggest consumer market in the world; the Chinese market.
This connect with Sinopec is indeed special, as this year is a significant landmark for both Sri Lanka and China. The year commemorates the 65th Anniversary of establishing bilateral diplomatic relations between the two countries and the 70th Anniversary of the Rubber – Rice Pact.
Sinopec is likely to enter Sri Lankan market for importing, distributing and selling petroleum products, as Sri Lankan Cabinet Ministers in the month of June approved a proposal to allow more companies from oil-producing nations to import oil and start retail operations in Sri Lanka.
This recent decision to let the Chinese enter in Sri Lanka’s fuel retail operations is prompted by a severe foreign exchange shortage.
At present, 90 per cent of Sri Lanka’s fuel supply is through the State-owned Ceylon Petroleum Corporation, and the remaining 10 per cent by Lanka Indian Oil Corporation (IOC).Sinopec is already present at the Port of Hambantota where it operates an oil depot.
