China affirms strategic trade and investment commitment to Sri Lanka under BRI
Daily FT: The four leading Chinese Chambers of Commerce last week expressed their shared commitment to economic partnership with Sri Lanka across key industries of machinery and electronics, agriculture and foodstuff, textiles and apparel and private sector investments under the Belt and Road Initiative (BRI).
These remarks were made at the ‘Sri Lanka–China Trade and Investment Forum 2025’ co-hosted by The Ceylon Chamber of Commerce, the Department of Commerce of Sri Lanka, the Sri Lanka–China Business Council of the Ceylon Chamber and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME).
This high-profile event attended by Chinese Commerce Minister Wang Wentao, Chinese Ambassador in Sri Lanka Qi Zhenhong, along with 115 delegates representing 77 Chinese companies, highlighted strategic cooperation, sectoral growth and future synergies to explore deepening bilateral ties.
The forum also served as a vibrant platform to promote and enhance investment opportunities and industrial collaboration between China and Sri Lanka.
CCCME Vice President Liu Chun outlined the strategic importance of bilateral cooperation in manufacturing and technology, citing a remarkable 74% year-on-year (YoY) increase in trade of machinery and electronic goods, which reached $ 2.29 billion out of a total $ 5.36 billion bilateral trade.
“Under the guidance of the State leaders of both countries, the strategic cooperation partnership between the two nations with the sincere mutual assistance and the enduring goodwill has grown even stronger,” she said.
Highlighting the evolution of collaboration from traditional infrastructure projects to high-tech industries, Chun noted that during the State visit of President Anura Kumara Disanayake to China, Sri Lanka’s Finance, Planning and Economic Development Ministry and the Chinese Commerce Ministry signed a MoU to establish a Bilateral Working Group on Investment and Economic Cooperation.
“Against this background, business communities of both sides agreed to advance deeper and broader economic and trade cooperation. The participants will engage in in-depth discussions during the business matchmaking sessions on latest investment policies, trade environments and concrete measures to enhance economic cooperation,” she added.
With the majority of attendees from China’s machinery and electronic sectors, CCCME Vice President said the forum was a great platform to align industrial strategies and advance mutual interests through actionable policy dialogues.
The China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA) President Cao Derong commended the rapid growth of agricultural trade between the two countries.
“In 2024, the total agricultural trade volume between the two countries reached $ 250 million, up 16.6% YoY. Among them, China’s exports to Sri Lanka amounted to $ 150 million, an increase of 29% YoY, mainly consisting of garlic, aquatic products and potatoes. China’s imports from Sri Lanka reached $ 90 million, an increase of 0.9% YoY, primarily including black tea, seafood and spices,” he said.
“Sri Lankan black tea is globally renowned for its unique flavour. In 2024, China imported $ 120 million worth of black tea from around the world, with Sri Lanka being the largest source of imports, accounting for $ 57.59 million,” he pointed out.
Derong also said CFNA brought 15 enterprises, including major players in seafood, fruit, vegetables and spices to engage with Sri Lankan counterparts.
The China Chamber of Commerce for Import and Export of Textile Products (CCCT) Vice Chairman Zhang Xi’an underscored the deep integration of the textile and garment industries between China and Sri Lanka.
“According to China Customs statistics, the total bilateral trade in textile and apparel between China and Sri Lanka amounted to $ 1.26 billion in 2024, an increase of 16.6% YoY. Among them, China’s textile and garment exports to Sri Lanka amounted to $ 1.13 billion, up 16.8% YoY. Among them, yarn fabric exports accounted for up to 80%. Imports from Sri Lanka $ 3.8 million, an increase of 113% YoY. Therefore, the two sides have great potential for cooperation,” he said.
Xi’an said Sri Lanka’s well established garment processing industry, boosted by its preferential access to EU markets under GSP status, positions it as a valuable partner for Chinese firms looking to expand production overseas.
The China International Chamber of Commerce for the Private Sector (CICCPS) Vice President Yan Gaoming led a diverse delegation of 20 enterprises including; energy, construction, agriculture, legal, pharmaceutical and technology sectors.
He underscored the central role of private enterprises in driving regional economic integration, emphasising innovation and partnership under the Belt and Road Initiative.
To elevate China-Sri Lanka cooperation to new heights, Gaoming proposed three key initiatives including; 1) Finalisation of the China-Sri Lanka Free Trade Agreement (FTA) to enhance trade and service flows, 2) Creation of industrial cooperation zones in Colombo and Hambantota to catalyse labour-intensive manufacturing and processing and 3) Integrate models of financing for infrastructure and renewable energy projects, including local currency settlement mechanisms to mitigate forex risk.
Additionally, Gaoming said enhancing local currency settlement mechanisms will mitigate exchange rate risks.
“Chinese private enterprises are committed to leveraging the Belt and Road Initiative as a cornerstone to forge a more resilient and dynamic strategic partnership between our nations,” he said.
OSL take:
Sri Lanka and China enjoy strong bilateral and trade ties, which could be further strengthened by the proposed free trade agreement (FTA). China has assigned much importance to Sri Lanka given that Sri Lanka is prominently placed in China’s Belt and Road Initiative. Sri Lanka’s geographical positioning in the Indian Ocean, the strong trade ties with many foreign countries and the business conducive environment in Sri Lanka have all served to attract Chinese businesses/investors to explore the expanding business/investment opportunities in Sri Lanka. Also, China is a key development partner of Sri Lanka and many Chinese businesses are also operating in Sri Lanka. The growth, profits and expansions recorded by Chinese businesses operating in Sri Lanka also serve to boost the confidence of other Chinese businesses/investors to explore the expanding business/investment opportunities in Sri Lanka. Given the growth and business potential in Sri Lanka and the country’s target of becoming a regional hub, Chinese businesses/investors could look at setting up bases in Sri Lanka to engage with other countries in the region using the preferential treatment enjoyed by Sri Lanka with them. All these factors show that Sri Lanka is the best business
destination in the Indian Ocean region for Chinese businesses. Also, Chinese businesses could look at further expanding operations by forming partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20250612/Z_7 |