Sri Lanka grants economic zone to China
Sri Lanka has given an exclusive zone to Chinese companies in an effort to attract more investment from Asia's largest economy.
The Sri Lankan investment promotion agency said Hong Kong-based Huichen Investment Holdings will develop the economic zone in Mirigama. Chinese companies involved in manufacturing information technology related services are expected to set up operations in the zone. Correspondents say this is the first time a foreign country has been given such a facility in Sri Lanka.New Turn Media Minister Anura Priyadharsana Yapa commenting on the exclusive zone said that it was a new turn towards foreign investment in Sri Lanka. "Under this the Chinese investor will develop infrastructure facilities in the 160 acre land and invite his countrymen to begin investments", he said. Minister Yapa said Sri Lanka is open to any foreign investment but the particular agreement signed is only for Chinese investment. Sri Lanka and China share close military and political ties. During the last stages of Sri Lanka's war against Tamil rebels, Beijing had helped Colombo in keeping a western-led resolution to impose a truce off the Security Council's agenda.