Chinese trade delegation make inroads into leather, chemical and metal industries

The recent visit of a 50-strong Chinese trade and investment delegation to Sri Lanka opened up new avenues for economic co-operation between the two countries, especially in the leather, chemicals and metal industries, the BOI said in a statement last week.

"During his stay in Sri Lanka, Wang Schicheng, the Vice President of the Light Industry Association of China who headed the delegation stated that Sri Lanka is an excellent location for investment," the BOI said.

He said his delegation was able to learn more about the economic climate of Sri Lanka as well as the generous regime of incentives offered by the Board of Investment to investors.

Light Industries Association of China comprises of many light industries and is the worlds largest manufacturer of leather goods and accessories. In the leather goods area they have around 1 million varieties and 1300 brands and an annual output of 500 million items.

The Board of Investment of Sri Lanka organized one-on–one meetings whereby entrepreneurs from Sri Lanka and China were able to hold discussions on areas for future co-operation. The delegation comprised of a large group of manufacturers of leather goods.

Subsequent to the successful one-on-one meetings, Senaka Silva, Chairman and Managing Director of Saraa Os leather Private Limited, invited the Chinese entrepreneurs to visit the factory at Boralesgamuwa, to help them to evaluate the standards and potential Sri Lanka offers in the production of leather goods.

At the end of the tour at a follow up meeting with the Senior Officials of the BOI, and head of Delegation Wang Schicheng, and Deputy Head of Delegation Ms Fang Min, the visiting delegates said they were impressed by the quality of the products made at Saraa Os Leather, as well as the advanced technology used in the production, and expressed their interest in entering into a joint venture, to enhance capacity and bring in new technologies of manufacture and use Sri Lanka as a platform for value added exports to EU, USA and to regional markets.

Saraa Os Leather began by manufacturing exclusive leather products made out of ostrich hides from which its name is derived. They continue to make products out of exotic leathers such a ostrich but have extended the range of their products include goods made of normal leathers, canvas, raffia, webbing, cotton and synthetic materials.

In addition to this joint venture, Chinese entrepreneurs have expressed interest in setting up new projects in Sri Lanka. One is an investment by Renqiu City Hayuan Chemical Fiber Co, ltd to manufacture chemical fiber and membranes that have wide applications such as in draining and filtration. Dingzhou Jinlong Metal Production Co Ltd who manufactures welding electrodes used to fuse pieces of metal together is the second project. Exchange of information and negotiations are in progress. Both projects are indicators of the interest Chinese enterprises have shown in Sri Lanka as a destination for investment.

"China’s present economic presence in Sri Lanka amounts to 35 companies that operate under the special scheme of incentives the BOI offers investors. There are in addition 46 other Chinese enterprises that operate under the normal laws of the country.

"The total value of Chinese investment in Sri Lanka is US$ 132 million. There is confidence that more investment from China will come to Sri Lanka in spite of the global economic downturn," the BOI said.

Source: http://www.lankatimes.com/