Sri Lanka and China have signed two Memoranda of Understanding to set up a working group on trade facilitation and on industrial and supply chain cooperation, according to a statement from the Chinese Embassy in Colombo.
“China and Sri Lanka have taken steps to deepen economic and trade cooperation, signing key agreements and exploring additional investment opportunities during the eighth meeting of the China-Sri Lanka Joint Trade and Economic Commission held on May 29th in Colombo,” the Embassy said on social media platform X on Sunday. One agreement is on setting up a trade facilitation working group, and the other on industrial and supply chain cooperation.
According to a statement issued by the Sri Lankan President’s Office, Minister Wang noted that considering “the current political and economic stability in Sri Lanka, along with the clear policy direction” of the Dissanayake administration, “there has been a notable rise in interest from Chinese investors looking to invest in the country.”
Sri Lanka's economic ties with China continue to be significant. In 2023, Sri Lanka confirmed that it had reached a deal with China to restructure $4.2 billion of that debt. At the time, Sri Lanka’s total foreign debt stood at $46.9 billion, 52% of which was owed to China, its largest lender.
