Sino-Sri Lanka Co-operation

Finance Minister Dr.Sarath Amunugama talking about the importance of his visit to Sri Lanka described it as a historic visit.

During this tour Chinese Prime Minister Wen Jiabao has pledged aid amounting to US $350 million becoming the biggest single donor, Minister Amunugama said.

Norochcholai coal power project, Colombo- Katunayake high way, Colombo-Katunayake speed railway and a number of fisheries harbours are among the major projects that will be undertaken with Chinese assistance, he said.

With this government came into power, Sri Lanka adopted a policy by which bi-lateral co-operation between India, Japan and China has been bolstered.

This is moving away from the traditional way of relying solely on World Bank and IMF, he said.

"We have prepared aid programmes with these countries in such a way that no harm will be done to the sovreignity of Sri lanka", he said.

President Chandrika Kumaratunge has told Chinese PM that she supported a one china policy.

Asked whether this will affect relations with other countries, he said it has been a new trend that is coming up. "The era which solely respected the western solution of a liberal policy is now changing; though we are not denying that concept", he said.

Replying to a question about China's policy towards Sri Lanka's ethinic problem he said that China and India maintained political and economic relations with Sri Lanka without any pre-condition.

Some countries specially in the European union have placed the ethinc issue as a pre-condition for providing assistance,Minister Amunugama added.