According to him, the present existence of strong trading relationship between the two countries could now pave way for an increased flow of Foreign Direct Investment (FDI) from China, which is one of the fastest growing economies in the world.
“Entrepreneurs from China have been provided with an exclusive Export Processing Zone at Mirigama, and depending on the progress, additional space will be provided at Godagama, Matara and the Eastern Province,” Institute of Policy Studies executive director Dr Saman Kelegama said at a recent public lecture.
He said that of late, China has become a major investor in Sri Lanka with bilateral cooperation in tourism, mining, power generation, education, infrastructure, construction projects booming between the two countries.
“The telecommunications, power and energy industries attracted most of FDI inflows from China and presently 16 Chinese businesses have invested in garment, leather, telecom and electronics manufacturing facilities in the island,” Dr Kelegama said addressing on the topic ‘SL-China Economic Relations’ and held at the Bandaranaike Centre for International Studies in Colombo last week.
According to local immigration rules, all Chinese entrepreneurs who invest a minimum of US$ 25 million are provided with a Sri Lankan passport on the basis of a “second home” passport.
