China to help rebuild Sri Lankan economy after LTTE war

TV Sriram/PTI / Colombo June 4, 2009

As Sri Lanka works out ways to accelerate development after defeating the rebel LTTE, China has pledged its full cooperation in reconstruction of the Island nation's economy after 30 years of ethnic war.

"Prevalence of peace will strengthen the economy of Sri Lanka and China will continue to be a part of the economic reconstruction of the Island country," Deputy Director General of the Asian Affairs, Commerce Ministry, China Liang Wentao said.

"Ending the war against terrorism might help Sri Lanka to regain its ancient glory and economic prosperity," Wentao told reporters in Beijing yesterday.

"What Sri Lanka needs at this moment is a peaceful environment to rebuild its economy and this will attract more investments and economic benefits to the country.

"Sri Lanka has the best natural resources in the entire South Asian region. Reviving tourism and the export trade will help Sri Lanka rebuild its economy which was affected severely due to the war," Wentao said.

He said China will provide assistance to the Sri Lankan Government to rebuild and rehabilitate those affected. The top Chinese official said the two countries could work towards economic as well as cooperation in tourism.

"The strategic location and Buddhism will attract more Chinese tourists to Sri Lanka," he said.

Rubber, tobacco and fish products are the major exports to China from Sri Lanka.

"Diversifying of the economy will open new avenues for Sri Lankan products to enter the Chinese market," the state run Daily News quoted Wentao as saying.

Sri Lanka has invited Chinese investments to the country by taking advantage of the conducive conditions for setting up projects. China had invested in the Southern Hambantota new Port Complex, the Norochcholai (North-west Sri Lanka ) coal-fired power generation plant and the Performing Arts Centre in Colombo, among other areas, in Sri Lanka.

Tourist arrivals from China to Sri Lanka is estimated to have grown by 7.3 per cent during the first half of 2008.

On the export front, Sri Lankan tea is performing exceptionally well in the Chinese market and has achieved a remarkable growth of more than 65 per cent during first few months of 2008 over export figures for 2007, an official said.