SL Govt says, China a pleasing partner in progress

"China’s association is so respectable, cordial and progressive for Sri Lanka. The Chinese community stood by Sri Lanka at the worst of times with a steady supply of arms and ammunition in the battle fronts. And, the moral support they extended in the international arena is incomparable. Now, battling in the economic fronts, China’s assistance towards uplifting our economy is invaluable," the government news portal said quoting Power and Energy Minister John Senevirathna.

The Minister has paid a special tribute to the Chinese delegation who accompanied him at the announcement of the inauguration of Phase II and Phase III of the Norochchalai Coal Power Project funded by China as a preferential loan payable within 20 years at a minimum interest rate of 2%.

The Phase II of the project consists of two 300 MW power generation units adding a total of 600 MW in the national power grid. This is at a cost of US$ 891 million and includes a pier and a jetty for ships offloading coal. At the end of Phase II, pylons and power transmission lines will be extended up to Anuradhapura substation. And, a modern housing complex with all facilities will be built for the employees at the power plant.

The news portal further boasted this project as a whole, a massive construction set up under Mahinda Chinthana and said that SL government got US$ 1346 million in aids and it will become history as the biggest investment project set up during the past three years.

Meanwhile Sri Lanka on Tuesday granted separate economic zone in Mirigama, exclusively for Chinese companies. China's Huichen Investment Holdings Limited will manage and bring new investments into the Mirigama zone, around 55 kilometres north of Colombo, for a period of 33 years. 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.

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.