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Lanka’s exports to China up by 111.2% so far this year

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Sri Lanka’s exports to China is up by 111.2% so far this year, Chinese Ambassador to Sri Lanka Qi Zhenhong said yesterday in a statement. He said that the two nations have been standing together and helping each other in the fighting against the pandemic.

Pointing out that Sri Lanka’s GDP achieved growth of 8% in the first half of this year, Zhenhong said the cooperation between two countries in trade, investment, finance, etc., also bore fruitful results, with the value of bilateral trade in goods up by 54.7% year on year for the first three quarters

“Major cooperation projects especially the Hambantota Port and Port City Colombo becoming new magnets to attract foreign investment. China looks forward to joining hands with Sri Lanka in defeating the Pandemic and promoting bilateral pragmatic cooperation to achieve new breakthroughs in the days to come; China is also willing to share development opportunities and draw up a blueprint for development with countries around the world to achieve greater and better development,” he said.

Zhenhong said that the Chinese economy is thriving despite the threat of the pandemic and that China’s gross domestic product (GDP) reached 82.31 trillion yuan in the first three quarters of 2021. This is a 9.8% increase over the same period last year at comparable prices, with an average two-year growth of 5.2%.

“Despite the continuous impact of COVID-19 worldwide, China’s economy was growing steadily. Its optimised and upgraded economy showed extraordinary resilience to pressure, contributed significantly to the stabilisation and restoration of the global supply chain, and injected much-needed confidence and impetus into the current world economy with uncertainty,” he said.

The Ambassador said that Sri Lanka can benefit from this thriving economy by increasing exports to identified areas. Admittedly, the Chinese economy is also faced with some challenges, including the unbalanced and inadequate development, factors restricting investment and consumer demand, structural contradiction of employment, uncertainty caused by the pandemic situation globally, and international commodity prices running high, etc., he said. However, these do not take from the indicators that the coming years would be good for the Chinese economy.

“China is striving to build a new development pattern with the domestic cycle as the mainstay and the domestic and international cycles reinforcing each other. The economic fundamentals that will sustain stable and long-term growth remain unchanged: major macro indicators have stayed within a reasonable range and the national economy maintains the trend of recovery; the economic structure has been adjusted and optimized and the quality and efficiency of development are improved; the deepening of reform and opening-up is advancing and economic development is getting stronger momentum; residents’ income continues to grow and people’s livelihood gets powerful and effective support.” he said.

Given below are excerpts from the statement: “First, the consumer price index (CPI) was at a relatively low level (up by 0.6% year on year). Prices of daily necessities were stable with a slight decline and food prices have dropped by 1.6%. Second, employment was generally stable. 10.45 million new jobs were created in urban areas, achieving 95% of this year’s target; surveyed urban unemployment rate was 5.2%. Third, steady progress was witnessed in the development of industries. The total output of summer grain and early rice increased by 3.69 million tons compared to last year and the sown area for autumn grain also expanded. The value added of high-tech manufacturing industry increased by 20.1% year on year with an average two-year growth of 12.8%. Fourth, foreign trade and investment grew rapidly. The trade value of goods increased by 22.7% year on year in the first three quarters, with widened trade surplus and optimized trade structure. Paid-in foreign investment continued to increase (up by 22.3% for the first eight months) and foreign exchange reserves remained stable, maintaining above USD 3.2 trillion for five consecutive months. Fifth, there was sustained recovery of domestic demand. Investment in the manufacturing industry and private investment achieved average two-year growth of 3.3% and 3.7% respectively. The per capita disposable income rose by 9.7% year on year, basically in line with GDP growth. Sixth, innovation and entrepreneurship gained sound momentum. China has moved up and ranks the 12th in WIPO’s “Global Innovation Index 2021″. Market entities have increased rapidly, with a total number of nearly 150 million and the overall level of activity around 70%. Seventh, the development vitality of enterprises was stimulated. For the first eight months, the value added of medium-sized industrial enterprises and micro and small ones above designated size increased by 16.3% and 14.1% year on year respectively and the total profit of industrial enterprises above designated size recorded an average two-year growth of 19.5%. Eighth, financing cost in general has been steadily decreasing. From January to August, the corporate loan interest rate was 4.63%, down by 0.13% over the same period of last year.”



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Israel resumes attacks as Iran vows to avenge supreme leader’s death

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An explosion caused by an Iranian missile in Tel Aviv

* Iran begins 40-day mourning after Khamenei killed in US-Israeli attack

* President Pezeshkian condemns killing as ‘a great crime’

Iran has begun 40 days of mourning after Supreme Leader Ayatollah Ali Khamenei was killed in ongoing attacks by the United States and Israel, according to Iranian state media.

Top security officials were also killed in Saturday’s strikes, along with Khamenei’s daughter, son-in-law and grandson. The killings mark one of the most significant blows to Iran’s leadership since the 1979 Islamic revolution Al Jazeera has reported.

Iranian President Masoud Pezeshkian condemned the killing as “a great crime”, according to a statement from his office. He also declared seven days of public holidays in addition to the 40-day mourning period.

Reporting from Tehran, Al Jazeera’s Tohid Asadi said people were pouring into the streets of the capital following the news of Khamenei’s killing.

“There will be expected ceremonies,” he said, noting they would likely take place amid continuing bombardment across the country.

Protests denouncing Khamenei’s killing were also reported elsewhere, including Shiraz, Yasuj and Lorestan.

“There will be expected ceremonies,” he said, noting they would likely take place amid continuing bombardment across the country.

Footage aired by Iranian state media showed supporters mourning at the shrine of Imam Reza in Mashhad, with several people seen crying and collapsing in grief, according to Al Jazeera.

The killing also led to protests in neighbouring Iraq, which declared three days of public mourning. In Baghdad, protesters confronted security forces in the heavily fortified Green Zone, which houses Iraqi government buildings and foreign embassies.

Videos verified by Al Jazeera showed demonstrators waving flags and shouting slogans, with witnesses saying some were attempting to mobilise towards the US Embassy. Footage also showed protesters blocking vehicles at a roundabout near one of the entrances to the area.

There was also a protest in the Pakistani city of Karachi, where footage, verified by Al Jazeera, showed people setting fire to and smashing the windows of the US consulate.

However, there have also been reports of celebrations in Iran, with the Reuters news agency quoting witnesses as saying some people had taken to the streets in Tehran, the nearby city of Karaj and the central city of Isfahan.

Meanwhile, the official IRNA news agency reported that a three-person council, consisting of the country’s president, the chief of the judiciary, and one of the jurists of the Guardian Council, will temporarily assume all leadership duties in the country. The body will temporarily oversee the country until a new supreme leader is elected.

Ali Larijani, the head of Iran’s Supreme National Security Council, accused the US and Israel of trying to plunder Iran, in an interview aired on state TV.

He also called on Iranians to unite. “Groups seeking to divide Iran should know that we will not tolerate it,” he added.

Smoke rises over central Tehran following ongoing U.S.–Israeli strikes on Iran yesterday.[EPA]

Khamenei assumed leadership of Iran in 1989 following the death of Ayatollah Ruhollah Khomeini, who had led the Islamic revolution a decade earlier.

While Khomeini was regarded as the ideological force behind the revolution that ended the Pahlavi monarchy, Khamenei went on to shape Iran’s military and paramilitary apparatus, strengthening both its domestic control and its regional influence.

Meanwhile, the Islamic Revolutionary Guard Corps (IRGC) pledged revenge and said it had launched strikes on 27 bases hosting US troops in the region, as well as Israeli military facilities in Tel Aviv.

Explosions have continued to be reported in Qatar and the United Arab Emirates, while security alerts are in place in several countries across the region.

US President Donald Trump, in a social media post on Sunday, warned Iran that it would be hit “with a force that has ?never been seen before” if it retaliated.

Iran’s retaliatory attacks since Saturday have targeted Israel and US assets across multiple Middle East countries, including Qatar, the UAE, Kuwait, Bahrain, Jordan, Saudi Arabia and Iraq.

Harlan Ullman, chairman of the strategic advisory firm Killowen Group and an adviser to the Atlantic Council in Washington, DC, said the US may have made a “big mistake” by killing Khamenei.

“Decapitation only works when you get all the leaders, and I don’t think that we got all the leaders,” Ullman said, adding that the US should not expect Iran’s leadership to enter negotiations in the immediate aftermath.

Iranian state media reported on Saturday at least 201 people have been killed in the joint US-Israeli attacks across 24 provinces, citing the Red Crescent. In southern Iran, at least 148 people were killed and 95 wounded in a strike on an elementary girls’ school in Minab on Saturday, with the toll continuing to rise, according to state media.

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CPC has enough fuel stocks

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There would be no delay in fuel shipments scheduled for April and May, the Ceylon Petroleum Corporation (CPC) assured yesterday.

Addressing a media briefing in Colombo, CPC Chairman D.J. Rajakaruna said Sri Lanka’s fuel supplies did not originate from the present conflict zone in West Asia and, therefore, supplies to the Corporation would not be disrupted.

He noted that the relevant consignments were due to arrive from India and Singapore as planned.

“We are making this statement responsibly. There is no need for the public to queue up for fuel. Distribution was not originally scheduled for Sunday (01), but due to increased demand, we have deployed all distribution staff to continue fuel issuance. Although Monday (02) is a Poya Day, fuel supplies will continue without interruption,” he said.

The Chairman added that all filling stations had been instructed not to dispense fuel into cans or barrels, warning that legal action would be taken against those attempting to purchase fuel in bulk containers for resale.

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Lanka, Pakistan strengthen ties at 13th JEC

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Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development and Haroon Akhtar Khan, Special Assistant to the Prime Minister of Pakistan for Industries and Production at the 13th Session of the Sri Lanka–Pakistan Joint Economic Commission in Colombo.

The 13th Session of the Sri Lanka–Pakistan Joint Economic Commission (JEC) was successfully held recently in Colombo, reinforcing the strong and longstanding economic and diplomatic ties between the two countries.

The Sri Lankan delegation was led by Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, while the Pakistani delegation was headed by Haroon Akhtar Khan, Special Assistant to the Prime Minister of Pakistan for Industries and Production. The session concluded with the signing of the Agreed Minutes by both Co-Chairs, formalising cooperation across multiple sectors.

The Pakistan High Commission in Colombo said that in the IT and digital economy, both sides agreed in principle to establish a Joint Working Group on IT and telecommunications, promote collaboration in emerging technologies, and support each other in international digital forums.

Industrial cooperation was a key focus, with discussions on expanding trade in chemicals, polymers, engineering goods, glassware, surgical instruments, and pharmaceuticals. Sri Lanka invited Pakistani pharmaceutical companies to explore investment opportunities in designated pharmaceutical zones. Both countries also agreed to strengthen collaboration in Export Processing Zones and enhance support for small and medium enterprises through their respective development agencies.

Significant progress was made in agriculture and livestock, including cooperation on meat exports, livestock farming, seed certification, sanitary and phytosanitary harmonisation, pest risk analysis, and capacity building. Procedures for the export of Sri Lankan pineapples and avocados to Pakistan were advanced. Both sides explored electronic phytosanitary certification (ePhyto), blockchain-based seed traceability systems, and increased trade in agro-commodities such as rice, sesame, and onions.

In education, the JEC emphasised academic and research cooperation, faculty and student exchanges, accreditation and quality assurance, and promoting Pakistan as a higher education destination for Sri Lankan students. A Joint Working Group on Education and Science was proposed, alongside renewal of several institutional Memoranda of Understanding.

Cooperation in science, technology, and innovation will continue under existing bilateral frameworks, with plans for joint research in advanced materials, biotechnology, climate change mitigation, and emerging technologies. Collaborative research projects, student exchanges, and co-authored publications were highlighted as key initiatives.

Health sector collaboration will focus on joint research, academic exchanges, regulatory cooperation on therapeutic goods, capacity building, fast-track registration of essential medicines, public-private partnerships, epidemiological surveillance, and coordinated responses to disease outbreaks.

Maritime cooperation was also discussed, with Pakistan offering technical expertise, training, and industrial collaboration through its shipbuilding institutions. Both sides explored enhanced maritime connectivity, including transshipment, port cooperation at Karachi and Gwadar, direct shipping routes, logistics integration, and maritime training programs.

Commerce secretary-level talks reviewed the progress of the Pakistan–Sri Lanka Free Trade Agreement (PSFTA), assessing current implementation and identifying measures to further enhance bilateral trade and economic cooperation.

On the sidelines, Special Assistant Haroon Akhtar Khan held discussions with Sri Lankan Cabinet members on collaboration in industry, labor and foreign employment, and health sectors.

Both delegations expressed satisfaction with the outcomes of the 13th JEC and reaffirmed their commitment to regular engagement and effective implementation of agreed initiatives. It was mutually agreed that the 14th session will be held in Islamabad, with dates to be confirmed through diplomatic channels.

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