Sri Lankan officials want a longer period to negotiate a free trade agreement (FTA) with China as they are concerned about the economic impact of a rushed deal on their small economy, the Sri Lankan ambassador to China said on Sunday.
There has been rising concern in the South Asian nation about Chinese investment, a key part of China's Belt and Road (B&R) initiative to create a modern-day Silk Road across Asia.
Hundreds of Sri Lankans clashed with police at the opening last year of a Chinese-invested industrial zone in the south, saying they would not be moved from their land. It was the first time opposition to Chinese investments in Sri Lanka had turned tumultuous.
Speaking on the sidelines of an independence day reception at the Sri Lankan embassy in Beijing, Karunasena Kodituwakku said an FTA with China could not be rushed.
"We'd like to have the process (go on) a little longer. China would like to have it go faster," Kodituwakku noted.
"Because Sri Lanka is a small economy, we have to get a consensus from stakeholders," he added, so it will take more time. "But eventually we will sign the agreement."
Sri Lanka last month signed an FTA with Singapore, but Singapore's economy is not as complex as China's, Kodituwakku said.
"Chinese imports are very important to Sri Lanka, but opening up the whole thing in a short time may make some problems for local companies. Therefore we have to balance it."
Sri Lanka has also been trying to get investment for a little utilized airport on its southern tip, in Mattala, built at a cost of $253 million by China, which also provided $230 million of funding.
"No doubt it was a white elephant. It is still a white elephant," Kodituwakku said.
India had been in advanced talks with Sri Lanka to operate the airport, but the ambassador said no deal had been reached.
"We have to turn it into a viable economic venture. We gave the option to Chinese companies," he said.
"I know Chinese companies have shown an interest, but according to our studies they did not have a viable economic plan and that's why they had to give the option to India," he noted.
"Anyone who wants to come and turn the Mattala airport into a viable economic venture will be welcome. But unfortunately no one has taken over.
