Following the conclusion of the China-Sri Lanka Joint Trade and Economic Commission in Colombo, the states have signed two Memorandums of Understanding which deepen economic and trade cooperation.
Chinese Commerce Minister Wang Wentao and Sri Lankan Minister of Trade Wasantha Samarasinghe co-chaired the meeting, during which both sides exchanged in-depth views on advancing high-quality and Belt and Road cooperation, expanding trade and investment, and safeguarding the multilateral trading system. Two Memorandums of Understanding (MoU) were signed following the talks - one on establishing a trade facilitation working group, and the other on industrial and supply chain cooperation.
Wang noted, China is also committed to driving investment-led trade, improving the local business environment, and supporting green development and the digital economy. He reaffirmed China's stance in defending the multilateral trading system centred on the World Trade organisation and opposing unilateraism and protectionism.
Sri Lanka's economic ties with China have deepened significantly in recent years, with China emerging as the Island nation's most trusted economic partner. By the end 2022, Sri Lanka outstanding debt to Chinese lenders had reached approximately $7.4 billion, representing nearly 20% of its total external public debt.
in 2023, Sri Lanka has confirmed that is has reached that is has reached a deal, external with China, to restructure $4.2 bn of debt. At the Sri Lanka had a total foreign debt of $46.9 bn, 52% of which owed China, its largest lender.
During his visit to China earlier this year, Dissanayake affirmed his commitment to enhancing this relationship. He agreed to eight key measures proposed by Chinese President Xi Jinping aimed at advancing Belt and Road cooperation. These measures include the continued development of major projects like the Colombo Port City and Hambantota Port.
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