Sri Lanka reiterates commitment to ‘Belt and Road’ cooperation

…builds on acquisition of port on 99-year-lease

China and Sri Lanka yesterday (16) finalised a strategic USD 3.7 bn Chinese investment in a state-of-the-art oil refinery at Hambantota.President’s Media Division (PMD) said that the investment secured during President Anura Kumara Disanayake’s four-day state visit to China was the largest single foreign direct investment to date.

China acquired Hambantota port in 2017 on a 99-year lease for USD 1.2 bn. According to the PMD the latest agreement was signed by Ministry of Energy of and China Petroleum and Chemical Corporation aka Sinopec.

Declaring that the proposed facility would have a capacity of 200,000 barrels, the PMD said that a substantial portion of the refinery’s output would be for export, further enhancing the nation’s foreign exchange earnings.

The signing ceremony was attended by Minister of Foreign Affairs, Labour and Tourism Vijitha Herath, Minister of Transport, Highways, Ports and Civil Aviation Bimal Rathnayake and Director General of Government Information H. S. K. J. Bandara.

Other sources said that the agreement had been formalised in Nov 2023 during Wickremesinghe-Rajapaksa government. President Disanayake undertook a four-day state visit to China. Disanayake’s first visit was to New Delhi, where the two countries reached consensus on a spate of agreements.

Excerpts of joint statement: “= Both sides reaffirmed mutual support on issues involving each other’s core interests and major concerns. Both sides reaffirm the authority of the United Nations General Assembly Resolution 2758 and Sri Lanka reaffirmed its strong commitment to the one-China principle, recognising that

the Government of the People’s Republic of China is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China’s territory. Sri Lanka firmly supports all efforts by the Chinese government to achieve national reunification, and opposes “Taiwan independence” in any form. Sri Lanka reiterated that it will never allow its territory to be used for any anti-China, separatist activities and will firmly support China on issues related to Xizang and Xinjiang. China reiterated that it will continue to firmly support Sri Lanka in safeguarding national independence, sovereignty and territorial integrity, and will respect and support Sri Lanka in independently choosing a development path suited to its national conditions. The Chinese side reiterated its commitment to an independent foreign policy of peace. Sri Lanka reiterated its commitment to an independent non-aligned foreign policy.

= Under the guidance and encouragement of leaders of both countries, China and Sri Lanka have produced fruitful outcomes in Belt and Road cooperation. Sri Lanka appreciates the important role of Belt and Road cooperation in its economic and social development and the livelihood of its people. The two sides agreed to advance all major signature projects including the Colombo Port City and Hambantota Port integrated development, fully utilize such platforms as the Silk Road Workshop and carry out more livelihood programs in Sri Lanka in accordance with the principles of planning together, building together and benefiting together, open, green and clean cooperation, and high-standard, people-centered and sustainable development and following the eight major steps announced by President Xi Jinping for supporting high-quality Belt and Road cooperation. The two sides were pleased to sign a Belt and Road cooperation plan to upgrade China-Sri Lanka high-quality Belt and Road cooperation and jointly open up new space for win-win development of higher standard, stronger resilience and greater sustainability.

= Sri Lanka expressed its high appreciation for the valuable support it has received from China in times of financial difficulties, including the vital assistance in restructuring China-related debts, which was a robust support for Sri Lanka in effectively dealing with the debt issue. Sri Lanka expressed its desire for the early implementation of the agreed debt restructuring plan together with Chinese financial institutions. China will continue to play a positive role in the International Monetary Fund and maintain friendly communication with other creditors to help Sri Lanka ease its financial difficulties and achieve debt sustainability. The Central Bank of Sri Lanka and the People’s Bank of China have renewed their currency swap agreement and will continue to carry out financial cooperation.

= The two sides share the desire to continue maritime cooperation on the basis of equality, mutual trust, openness and mutual benefit, and hold regular bilateral consultations on maritime affairs. The two sides are ready to deepen cooperation in such fields as conservation and restoration of the marine environment and ecosystems, maritime domain awareness, maritime rescue and disaster relief, and maritime personnel training and capacity building, and pool their strength to build a maritime community with a shared future. The two sides agreed to sign Memorandum of Understanding on Ocean Cooperation toward Blue Partnership.

= China will continue to extend support for the development of the health sector in Sri Lanka. China’s Yunnan Province will continue to send medical teams to Sri Lanka to carry out the Brightness Action programme.

= The two sides recognise judicial, law enforcement and security cooperation as an important component of bilateral cooperation, and stand ready to jointly crack down on cross-border crimes such as telecom fraud and online gambling. China is ready to do its best to support capacity building in Sri Lanka’s judicial, law enforcement and security areas and provide assistance of police supplies.