Sri Lanka and the Republic of Korea have undergone many similar experiences in the past and, overcoming difficulties of a formidable nature, have every reason to look to the future with confidence – a consideration which establishes a powerful natural bond between the two countries as a basis for close co-operation both bilaterally and at the international level, Prime Minister Kim Hwang-sik of the Republic of Korea said in Seoul on Thursday.

Mr. Kim Sung-hwan, Minister of Foreign Affairs and Trade of the Republic of Korea, said at a separate meeting that Korea has identified Sri Lanka as a country with which it would develop special economic relations, with increased resources being made available, as the two countries celebrate next year the 35th anniversary of the establishment of diplomatic relations.

The Prime Minister and the Foreign Minister made these comments while receiving Professor G.L. Peiris, Minister of External Affairs, on a two-day official visit to Seoul.

Prime Minister Kim Hwang-sik said that, as a country which had derived considerable benefit in the past from foreign assistance, Korea was acutely mindful of its obligation to reciprocate, and observed that Sri Lanka’s striking achievements in the recent past in responding to the challenges of restoring peace and stability and promoting reconciliation, made the country an appropriate beneficiary of Korean assistance in every way.

At the meeting which Minister Peiris had in the Ministry of Foreign Affairs and Trade, the Korean side expressed satisfaction with the success of projects which had been undertaken in Sri Lanka in the sectors of health care, highways and information technology, implemented with assistance from Korea’s Official Development Assistance provided under the Economic Development Co-operation Fund. Further assistance is to be made available through the Export-Import (EXIM) Bank under a New Framework Agreement which will be signed next year for a period of four years. The Korean government has agreed to an enhanced quantum of assistance for Sri Lanka.

Prof. Peiris indicated, at a meeting at the Ministry of Finance and Strategy, that priority projects for disbursement of these resources next year would be improvement of the Peradeniya – Badulla - Chenkalady road, the Daduru Oya Integrated Water Supply Scheme, the Galagedara – Horana Road, the Haragama (Kundasale Area) water supply project, the Gampaha administration complex and the construction of the Northern Provincial Council office complex. The modalities for financing the Hambantota Sports Complex were discussed with the Ministry of Finance and Exim Bank.

The Korea International Co-operation Agency (KOICA), which undertook the rehabilitation of 8 schools in the districts of Ampara and Batticaloa, the improvement of health facilities in Matara and the construction of an international convention centre in Hambantota, will increase the resources to be made available to Sri Lanka next year.

There were strong indications of a resurgence of interest by Korean investors, who brought the most extensive resources into Sri Lanka some years ago, in re-entering the country with investments on a significant scale. Minister Peiris was hosted at a series of events by leading business organizations including Korea Importers’ Association (KOIMA), Korea Chamber of Commerce and Industry (KCCI), Korea Federation of Small and Medium Sized Business (KBIZ) and the Federation of Korean Industries (FKI).

The Minister addressed the Korean International Trade Association (KITA) on investment and trade opportunities in Sri Lanka. 35 of Korea’s largest companies attended this meeting and interacted with Prof. Peiris at a question and answer session.

Prime Minister Kim appreciated the observation by Prof. Peiris that there are important synergies between the Korean project, Saemaul Undong (New Village Movement) and Sri Lanka’s Divineguma programme, the object of which is to develop 1.1 million economic centres to achieve food security for family units. The two sides agreed to strengthen initiatives under the Korea Project on International Agriculture (KOPIA) to assist Sri Lanka with seed processing, soil management, packaging and marketing.