Special Zone for Chinese Investors Planned by Sri Lanka
Sri Lanka is planning to open a special zone in the southern part for Chinese investors as China is looking for expansion of its investment in the island nation. The Chairman of the Board of Investments Upul Jayasuriya stated that the government decided o set up the zone in the southern town of Hambantota. Sri Lanka is already conveying their decision to China and waiting for a response.
The government decided that the will open the gates for the Chinese in making investment particularly at the moment in its Hambantota. According to its chairman, Hambantota is a city that has a harbor and international airport that is why it’s a suitable venue for the Chinese investment to come up. This is the right time for China o come here as whatever is avail at a very cheap, cost effective prices. Not only the labor rate but the salaries and the cost of doing business is much cheaper that the entire region so Chinese investors will make use of the opportunity.
China is Sri Lanka’s largest contributor of foreign direct investment that has over $400 million in 2014. In the past five years, China and the government of President Maithripala Sirisena who is eager to attract more direct investment coming from China have developed a large number of Sri Lanka’s infrastructure and real estate projects. Sri Lanka and China relations is at its peak and the Board of Investments is working with Chinese investors and in the past years a lot of Chinese interest in Sri Lanka.
Sri Lanka is labeled as a investor friendly nation as their constitution guarantee that no investment is liable to be taken off by the government especially countries that have investment protection agreements with Sri Lanka. Furthermore the government is working to strengthen its constitutional clauses in a positive manner that will enable more investors to come in and China is one of the countries that signed the investment protection agreement with Sri Lanka. Investors that will invest more than 14 million U.S. dollars could buy and own properties by ant local investor when they lease out lands as these two major obstacles are now removed.
The Board of Investment also signed agreements for foreign direct investment of $1.6 billion so far and the agency said that improved facilitation under the new government is committed to speed up projects approvals and eliminate delays will yield high value projects.