A proposed Free Trade Agreement (FTA) between Sri Lanka and China is to be signed in June 2015, Deputy Secretary to the Treasury S. R. Attygalle said on October 28.

Sri Lanka President Mahinda Rajapaksa also noted the same time frame during a budget presentation to parliament on October 24.

The FTA, which was initially to be signed by the end of 2014, is expected to boost Sri Lanka's future development and promote trade between the two countries, which have been developing increasingly closer economic and trade relations in recent years.

A joint feasibility study on the proposed FTA was completed in March 2014 and concluded that the building of an FTA will bring benefits to both countries.

Although Sri Lanka's exports to China increased from $28.39 million in 2005 to $121.63 million in 2013, trade balance remains significantly in favor of China. Bilateral trade reached $3.62 billion in 2013.

Sri Lanka hopes the FTA will help the country gain easier access to the Chinese market and gradually reduce its trade deficit in respect to the world's second largest economy.

Seeking New Growth

Evergrande Group, a Chinese private conglomerate involved in property development, agriculture and sports, launched an infant formula on October 27 following its acquisition of New Zealand dairy producer Cowala Dairy Ltd.

The Guangzhou-based group also plans to build a dairy-manufacturing base in China to tap into the lucrative market. Chinese consumers have tended toward buying foreign brands following a series of tainted milk scandals in recent years.

The infant formula product will hit the market under the name Cowala nationwide soon, according to an announcement at its launch ceremony on October 27.

Evergrande, which runs China's most successful football club, Guangzhou Evergrande Taobao Football Club, appointed three players to serve as global promotion ambassadors for Cowala infant formula on October 27.

The group, established in 1997, made its fortune through real estate development, but has diversified its business in recent years by investing in agriculture, cultural tourism, dairy, livestock and sports.

The group's sales in 2013 reached 100.4 billion yuan ($16 billion), while sales in the first eight months of 2014 reached 90 billion yuan ($14.72 billion), according to its official website.

Rail Merger

China's top train makers, China CNR Corp. Ltd. and CSR Corp. Ltd., confirmed on October 28 that the two companies will soon merge to compete globally.

The expected merger will help export China's high-speed railway technologies by preventing cutthroat domestic competition between the two, analysts said.

Stock trading for the two companies has been suspended in the Shanghai and Hong Kong stock exchanges pending further announcements.

The two companies are both listed in Shanghai and Hong Kong, with a combined market value of about $30 billion based on the closing price before trading suspension.

CNR's net profit jumped 65.1 percent year on year to reach 3.96 billion yuan ($645 million) for the first nine months, according to its latest quarterly results filed with the Shanghai and Hong Kong stock exchanges on October 28.