With Chinese companies involved in as much as 40 per cent of the construction projects in Sri Lanka, a trade body here has moved a Cabinet paper demanding foreign companies engaged in such works should have local partners.
The Ceylon Institute of Builders (CIoB), an illustrious group of engineers and builders of Sri Lanka, said the China International Contractors Association (CHINCA) has a stake in 40 per cent of construction projects in the country, Colombo Gazette reported.
"In the next three years CHINCA wants to increase their stake in the Sri Lankan construction industry to 70 per cent of total projects. This can be detrimental to our local firms," CIoB President Rohan Karunarathna said at the opening of the seventh construction industry exhibition titled 'Construction Expo 2018' here on Friday.
"As a result, the Construction Chamber of Sri Lanka has signed an MoU with CHINCA to share all their projects here with Lankan construction firms so that the risk is mitigated," he said.
"We have also moved a cabinet paper that all such projects by foreign firms from any country should have a Sri Lankan partner from now on," Karunarathna added.
The report said over 240 local and international vendors, including 20 Indian companies and 30 Chinese firms, displayed a wide spectrum of construction products, services and information for the local construction sector during the exhibition.
A Business Forum of Sri Lanka and China's Liaoning province was also held on the sidelines of the expo opening.
Sri Lanka is an important partner in China's One Belt One Road (OBOR) and an important trade partner, the report quoted Liaoning Province Commerce Department Section chief Qyu Wanliang as saying.
"Liaoning-Sri Lanka total trade in the first five months of this year was USD 51 million. Liaoning Province believes it has opportunities to partner with Sri Lanka's economy which is growing steadily," he said.
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