Sri Lanka and China’s Yunnan sign “Three Free, Three Facilitation” to boost trade
EconomyNext: Sri Lanka signed a Memorandum of Understanding (MoU) with Yunnan Province of China recently to boost the trade and increase goods entering China, the island nation’s government said.
The MoU signed under the trade framework of “Three Free and Three Facilitations,” provides Sri Lankan entrepreneurs with a package that includes free warehousing facilities, free permanent exhibition booths, online market access, as well as customs clearance and transport facilities to enter the Chinese market, Sri Lankan government said in a statement.
“This will provide an opportunity for Sri Lankan companies to significantly reduce export-related costs,” the government said in a statement after signing the deal.
The deal was signed at ‘Sri Lanka and Yunnan Province Special Products Promotion Summit and Business Matchmaking Event,’ jointly organized by the Department of Commerce of Sri Lanka under the Ministry of Trade, Commerce, Food Security and Cooperative Development, and the Department of Commerce of Yunnan Province.
An official delegation led by Li Chaowei, Director General of the Department of Commerce of Yunnan Province, China, along with representatives from over 30 leading Chinese business entities arrived in Sri Lanka to participate in this event.
Addressing the summit virtually Vasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, emphasized the importance of bilateral cooperation between the two countries and highlighted the need to expand the export capacity of Sri Lankan products within the Chinese market.
Sri Lanka also signed a Letter of Intent (LOI), confirming the participation of Sri Lankan companies in the 11th China-South Asia Expo scheduled to be held in 2027.
This will pave the way for major promotion within the Chinese market for Sri Lanka’s leading export sectors, including Ceylon tea, food and beverages, spices, coconut products, seafood, gems and jewelry, and handicrafts, the government said in the statement.
OSL take:
Sri Lanka’s expanding network of international trade partnerships is creating new business/investment opportunities for foreign businesses/investors to establish operations in the country and use it as a base to access regional and global markets. A recent MoU with China’s Yunnan Province is expected to strengthen trade links and improve access for Sri Lankan products to the Chinese market. Under the “Three Free and Three Facilitations” framework, Sri Lankan exporters will receive access to free warehousing, permanent exhibition facilities, online marketplaces, and customs clearance and transport support. The arrangement could reduce export-related costs and create opportunities for foreign businesses to partner with Sri Lankan companies in sectors such as food and beverages, spices, tea, processed agricultural products and other consumer goods. The agreement was signed during a business promotion and matchmaking event attended by a Yunnan delegation and representatives of more than 30 Chinese business entities. For international investors, Sri Lanka’s growing trade engagement offers opportunities beyond the domestic market. Establishing manufacturing, processing, sourcing, logistics and distribution operations in the country could provide access to established commercial relationships with markets across Asia and beyond. Foreign companies could also use Sri Lanka to develop partnerships with local exporters, participate in regional supply chains and distribute products through trade networks connecting multiple countries. With improved market access, export facilitation and growing business-to-business engagement, Sri Lanka has the potential to attract investment from companies seeking a strategic base for international trade and regional expansion.
| Article Code : | VBS/AT/20261102Z_1 |