Bank of China (BoC) enters Sri Lanka strengthening strategic cooperation
View(s):Bank of China (BoC), one of the largest state-owned commercial banks in that vast People’s Republi,c began its operations in Sri Lanka on Wednesday by opening of its first branch in Colombo with the aim of boasting active entrepreneurial activities and promoting investments.
The bank has made an initial capital investment of US$ 80 million to set up its first Colombo branch at the Cargills building in Fort to support Sri Lanka’s aim of becoming a financial hub, officials said.
Delivering the address of welcome at a glittering ceremony organised to mark the occasion at the Shangri-La Hotel, Colombo, Wang Xiquan, Chairman of the Board of Supervisor of Bank of China, told the gathering that the launching of his bank branch operations in Colombo marks the beginning of China’s financial industry in the island.
He said that it was a new milestone in Sino -Lanka friendly relations and corporations. This will be an opportunity for the progress of overall strategic cooperation between the two countries, he said emphasising that this initiative paves the way for economic development and prosperity of the island nation.
The BoC will assist Chinese companies and investors to enter into the Sri Lankan market for the benefit of the two countries, he opined. He revealed that the 100 year-old bank now has 600 branches overseas and links with 1,600 financial institutions worldwide.
In his keynote address, Prime Minister Ranil Wickremesinghe expressed his optimism that the use of Chinese currency in Sri Lanka would be facilitated through the new bank branch with several Chinese funded projects now underway in the country.
He pointed out that the opening of the Colombo branch was an important step in strengthening the island’s economy and it opened a new chapter in the modern history of bilateral relations with China.
“The bank branch opening in Sri Lanka happens at a time when Colombo city is transforming into a megapolis,” he said noting that the Bank of China has a crucial role to play in helping this island by strengthening to local businesses while also being able to attract more Chinese investments into the country.
Sri Lanka has already entered into several new project agreements with China and the economic relations between the two countries were growing rapidly.
He disclosed that there will be better infrastructure facilities including express highways between Colombo and Kandy and Colombo and Hambantota by the end of the decade opening new investment avenues.
Sri Lanka is on its way to become the financial hub of Asia and the Bank of China could play a vital role in attracting Chinese investments facilitating the ongoing devilment process.
The Premier noted that Sri Lanka is now working to enter into a Free Trade Agreement with China as the island embarks on a programme to become the financial hub of Asia at a time when China was gaining the status of economic power house of Asia.
The future of trade in Asia could depend heavily on what becomes of China’s expansive One Belt, One Road initiative, which calls for massive investment in and development of trade routes in the region, he pointed out.
Sri Lanka is also negotiating a Comprehensive Economic Partnership Agreement in addition to its Free Trade Agreement with that country; he said adding that it makes economic trade deals with the two leading economies in Asia.
Governor of the Sri Lankan Central Bank Dr. Indrajit Coomaraswamy lauded the entry of the Bank of China into Colombo as a “major landmark” in the history of the Sri Lankan economy.
He said “the bank, with its large network of branches in China and other parts of the world, will not only help expand trade in Sri Lanka but help small and medium enterprises grow and tie up with manufacturers overseas as part of international supply chains”.
Bank of China Country Manager Wang Chuan, Finance Minister Mangala Samaraweera, Chinese Ambassador Cheng Xueyuan State Ministers Dr .Harsha de Silva and Eran Wickremaratne, leading businessmen in the country and ministry officials were among the large gathering who graced the occasion.