Bolombo, 11 December, (Asiantribune.com): Sri Lanka Embassy in Beijing has initiated a programme to promote Sri Lanka’s leather industry in the city of Baigou, in Hebei Province where the leather industry is prominently established in China. The Baigou city is famous for its bag industry and is hailed as the "City of Bags" in China.

The seminar was conducted by the China Light Industry Association as a result of the proposal made by Ambassador Karunatilaka Amunugama to this powerful association which has membership of more than 10000 entrepreneurs belonging to 41 associations.

The Commercial Counsellor Alexi Gunasekera made a presentation to the participants on the investment opportunities and business potential available in Sri Lanka particular in the Chinese leather industry during the investors’ forum held on 25th November 2008 in the Baiguo City.

The Ambassador addressed the gathering of potential investors in encouraging them to invest /establish joint co-operation with Sri Lanka in the leather and bag industry.

Explaining the opportunities for Baiguo Investors in Sri Lanka, the Sri Lankan Ambassador highlighted that total turnover of bilateral trade stood at US$ 1.4 Billion up to October 2008 and stressed that Sri Lanka has one of the most liberalized economies in our part of the world offering a range of high quality facilities to resident expatriates. All such investments carry a constitutional guarantee.

The Ambassador highlighted the facilities accrued under the Free Trade Agreement between Sri Lanka and India availing of numerous advantages for entry into the vast Indian market, as well as to Pakistan with similar facilities with the Free Trade Agreement with Pakistan. Ambassador also spoke about benefits of the South Asia Free Trade Agreement (SAFTA), when get it fully operationalised.

The European Union (EU) has offered duty free concessions to the footwear and leather products imported from Sri Lanka under their GSP+ scheme. Sri Lanka is the only country in the Asian region which has been offered such a concession. Furthermore, the anti dumping duties imposed on China (19.4%) and Vietnam (16.8%) by the EU would make Sri Lanka products competitive in the international market. All these facets were highlighted in order to attract investors who were present at the forum.

Noting the benefits for potential investors, Ambassador emphasized the major infrastructure drive covering sea ports, airports, roads, electricity, rail transport undertaken in Sri Lanka with Chinese assistance in order to make Sri Lanka a more conducive Investment location.

The advantages of Sri Lanka's strategic geographic location for trade and investment, with her location between the Far East and the Middle East, and her situation in South Asia giving it the opportunity of becoming the centre-point in trade in the region was also highlighted by the Commercial Counsellor during the presentation.

The Country Presentation clearly projected that Sri Lankan government has identified the footwear/bags leather products industry as having a vast export potential which could make large scale contributions to the local economy. Thus the government has offered duty free concessions to raw materials, machinery and equipment used for processing and manufacturing leather goods and leather.

Ambassador spoke of the presence of Special Economic Zone for Chinese Investors in Sri Lanka and invited them to take advantage of the vast opportunities afforded to them in Sri Lanka.

In his closing remarks Ambassador extended an invitation to Exhibition Centre of the China Light Industry which has a membership of 41 associations to visit Sri Lanka early next year as a fact finding mission, which was accepted enthusiastically by the Organizers of this forum.