By: Staff Writer
Colombo (LNW): China says it will promote pragmatic cooperation between the two countries and jointly implement the Global Development Initiative.
It has agreed to further strengthen cooperation with local and foreign companies and make more contributions to Sri Lanka’s economic recovery.
Measures have already been taken to encourage Chinese enterprises to invest in Sri Lanka and participate in high-quality cooperation under the Belt and Road Initiative’s framework to help Sri Lanka.
The Export-Import Bank of China extended the debt payment in 2022 and 2023, and the Chinese side agreed to negotiate a medium- and long-term debt disposal plan with Sri Lanka in a friendly manner, and promised to do its best to promote Sri Lanka’s debt sustainability.
Reiterating its position several times, the Chinese side has stressed that China and Sri Lanka are good brothers, good partners and good friends.
It has also said it is committed to maintaining friendly relations with Sri Lanka for mutual benefit and emphasized that it will continue to support Sri Lanka’s socioeconomic development and provide humanitarian aid to the best of its ability.
With China’s help Sri Lanka’s aspiration of becoming a major logistics hub in the region took a giant leap forward with the launch of a $392 million South Asia Commercial and Logistics Hub in Colombo Port.
The 5 million-square-foot logistics hub will be built in the center of Colombo Port and have a storage capacity of 530,000 cubic meters. The construction of the complex is expected to begin later this year, and the complex is expected to be completed by the end of 2025.
The SACLH will offer the full gamut of logistics-related facilities and services such as less-than-container load, multi-country consolidation, container freight station, general warehousing and various other value-added services.
Also, the project is expected to provide direct employment for at least 1,800 people and create 10,500 other jobs indirectly.
It will provide better logistics and warehousing facilities and services, enhancing the Colombo Port’s competitive advantage and consequently strengthening its status as a logistics hub, by improving the port’s services and introducing leading-edge technologies.
It’s direct foreign investment like this that Sri Lanka needs to boost its economic recovery, Chinese diplomatic sources said.
There is no doubt the Chinese enterprises will improve operational and marketing skills, strengthen the market power and commercial relationships, enhance technological expertise and access to cheaper sources of finance, which are of paramount importance for attracting more traffic to Sri Lanka and turning it into an international logistics hub, it added.
