Sri Lanka, China strengthen economic ties

China would work with Sri Lanka to promote the comprehensive and cooperative partnership to a new height, said Chinese Vice Premier Li Keqiang in Beijing on Friday, July 3.

"We attach great importance to the traditional friendship with Sri Lanka," Li told visiting Sri Lankan Foreign Minister Rohitha Bogollagama.

Hailing the China-Sri Lanka good-neighborly friendship, Li said the two nations had enjoyed smooth development of cooperation since forging diplomatic ties in 1957.

"The China-Sri Lanka relationship set a good example for the friendly ties between countries with different social systems," Li noted.

Bogollagama was on an official visit from July 1 to 5 at the invitation of Chinese Foreign Minister Yang Jiechi. Yang held talks with Bogollagama earlier Friday.

"China stands ready to expand cooperation with Sri Lanka, so as to consolidate the traditional bilateral friendship and breath new life into the cooperative relationship," Yang said.

Bogollagama spoke highly of the "close and productive" relations between the two nations, and applauded China's support for its struggle to safeguard sovereignty and territorial integrity.

Bogollagama reiterated Sri Lanka's adherence to the one-China policy and would push bilateral relations forward.

Earlier in the week, Sri Lanka had granted Chinese companies a separate economic zone on the island.

China's Huichen Investment Holdings Limited will manage and bring new investments into the Mirigama zone, some 55 kilometers (34 miles) north of Colombo, for a period of 33 years, officials said on Tuesday, June 30.

Over the next three-years, Huichen will invest US$28 million to develop roads, power and sewerage facilities in the zone, said Sri Lankan Investment Promotions Minister Anura Priyadharshana Yapa.

Separately, Sri Lanka and China signed an agreement on the second and third stages of the $891-million Norochcholai Coal Power 600 MW Project on Monday June 29.

The Information Department said phase two and three of the Norochcholai project would be completed by 2013.

The 300-MW first stage commenced in 2006 and is to be completed next year. The Chinese government facilitated long-term loans at a low interest rate for implementation of the project.

Power and Energy Minister John Senevirathna said the government was keen on importing sophisticated coal power infrastructure to minimise environmental hazards and that the project would be 98.8 per cent environmentally efficient, reducing the risk of pollution to mere 1.2%.