Beijing helped block a resolution censuring Sri Lanka for its handling of the final stages of the war against Tamil Tigers last month. -- PHOTO: AFP
COLOMBO - SRI Lanka on Tuesday granted Chinese companies a separate economic zone on the island which has just ended nearly four decades of ethnic bloodshed.
more investments planned
SRI Lanka attracted US$800 million in foreign investments last year, mostly into IT and telecoms-related sectors.
'With the war over, we have seen a lot of interest from companies to invest in areas like power, telecom, tourism, agro-processing, fisheries, education and IT services,' Mr Yapa said.
China's Huichen Investment Holdings Limited will manage and bring new investments into the Mirigama zone, some 55 kilometres north of Colombo, for a period of 33 years, officials said.
Over the next three-years, Huichen will invest US$28 million (S$40.5 million) to develop roads, power and sewerage facilities in the zone, said Investment Promotions Minister Anura Priyadharshana Yapa.
'This is the first time the government has given a foreign country a specific area to develop and attract foreign investments into the country,' Mr Yapa told reporters.
Huichen's president, Mr Huang Yuping, said nearly 30 Chinese firms involved in manufacturing and IT-related services had shown interest in setting up operations at the Mirigama zone.
With the end of its long-running war with ethnic Tamil Tiger rebels, Sri Lanka has set its sights on attracting US$1 billion in foreign investment this year, Mr Yapa said.
China is an increasingly key military and political ally.
Beijing helped block a resolution censuring Sri Lanka for its handling of the final stages of the war against Tamil Tigers last month and is a main supplier of small arms to the South Asian nation. -- AFP
