Economic & Market Bulletin
[September 09, 2005]

	Today's Stories
	FEATURE: Economic & Market Bulletin

A weekly publication of the Economic Affairs Division of the Ministry of Foreign Affairs
Volume 2:Issue 26 
09^th September 2005 

New Agreements and MoU between Sri Lanka and China 

• H. E. the President of Sri Lanka Chandrika Bandaranaike Kumaratunga paid a state visit to China from 13 August – 2 September, 2005.  During the visit, official talks were held between the two Presidents. 

• During the visit following Agreements and Memorandum of Understanding were signed.

•      Agreement on Cultural Cooperation between the Government of China and Government of Sri Lanka. 

•      Agreement on Economic and Technical Cooperation between the Government of China and Government of Sri Lanka.

•      Memorandum of Understanding on Tourism Cooperation between the National Tourism Administration of China and the Ministry of Tourism of Sri Lanka.

•      Exchange of note on the Establishment of Consulate in Shanghai between the Ministry of Foreign Affairs of China and the Ministry of Foreign Affairs of Sri Lanka. 

•      Memorandum of Understanding to Joint Establishment of Confucius Institute in Sri Lanka between the Ministry of Education of China and the Ministry of Education of Sri Lanka.

•      General Agreement regarding utilisation of the Preferential Buyer’s Credit from the Government of China to the Government of Sri Lanka between the Export Import Bank of China and the Ministry of Finance and Planning of the Government of Sri Lanka.

•      Design Contract on the National Performing Arts Theatre of Sri Lanka.

•      Memorandum of Understanding for Puttalam coal power plant project in Sri Lanka between China National Machinery and Equipment and Import and Export Corporation and Ceylon Electricity Board of Sri Lanka. 

IATA’s Billing Settlement Plan launched in Sri Lanka 

• The International Air Transport Association (IATA) has launched the operation of a Billing Settlement Plan (BSP) in Sri Lanka.

• The BSP operation brings new efficiency to the relationship between travel agents and airlines by providing a one stop standardized interface. Thirteen airlines and 11 travel agents are participating in the Sri Lanka BSP.

Launch of Skills development programme in construction industry

• The National Council for Economic Development (NCED) in collaboration with the United Nations Development Programme (UNDP) and Japan International Cooperation Agency (JICA) launched a skills development programme in Beliatta, Sammanturai and Batticaloa recently.

• Some of the issues that are to be addressed under the programme are; Access to Finance, Access to Modern Technology, Access to Market and Lack of Professionally Trained Skills.

• NCED has already addressed the first three-macro issues of the country together with its 22 National Clusters.

a)  Establishing an SME Bank with Rs.  5million capital base to address the access to finance issues

b)  Implementing “Dahasdiriya” the incentive scheme of Rs.1billion for exporters to modernise their facilities with modern technology and

c)  Getting GSP + status for the country’s exporters to access the EU markets duty free.

• Three more projects of this nature are scheduled to be launched in Galle, Vavuniya and Trincomalee in the future.

New website launched for Indian High Commission in Sri Lanka

• The Indian High Commission of Sri Lanka was launched the new website on 7^th of September 2005, entitled www.hcicolombo.org. The website contains information including Passport/Visa services, Economic, Commercial, Cultural and Educational services. In addition to the information carried on the website, there would be hyperlinks to other websites having general and specific information on India.

Tos Lanka plans to access huge Indian market 

• Sri Lanka’s largest electronic assembling solution company Tos Lanka Company (Pvt) Ltd has invested Rs. 700 million for a major factory expansion, which is located at the Biyagama export possessing zone. 

• The new factory will start commercial operations next month and will mainly focus on manufacturing LCD monitors, magnetic coil and energy saving lamps for the Indian market. 

• The company expects to access the huge Indian market through the Comprehensive Economic Partnership Agreement (CEPA).  According to the officials the Company has invested on training and development of staff to manufacture these products to international standards.

Gas explorations to begin in Sri Lanka

• The Government of Sri Lanka will be calling for tenders for gas and oil explorations off the shores of Hambantota and the gulf of Mannar.  Currently companies from India, Britain and Norway have shown an interest in prospecting for gas in these blocks, which will be carved out for deep sea drilling. 

The launch of Tsunami Development Assistance Database

• The Task Force for Rebuilding the Nation (TAFREN) has launched a new web portal on 2^nd September, 2005 to assist the Tsunami recovery programme with the support of the United Nations Development Programme (UNDP). The web site is entitled the Development Assistance Database (DAD) and the database can be accessed directly through  http://dad.tafren.gov.lk

• The new system will help to better coordinate and monitor post Tsunami recovery aid.  It allows for easy to read online access to the assistance coming into Sri Lanka for Tsunami recovery. 

• The web is designed to promote the allocation of assistance in line with priority national needs.  DAD shows the allocation of aid by sector, district, donor and implementer.  It includes projects from UN agencies, international financial agencies, bilateral donors, national and international NGOs and the private sector. 

EXCHANGE RATES ON 09^th SEPTEMBER 2005 

Exchange Rates of GULF Currencies 

 (Source: Financial Times 09^th September 2005)