-By LeN Economic Correspondent
(Lanka-e-News -31.May.2025, 11.00 PM) Chinese Commerce Minister- Wang Wentao leads largest-ever Chinese business delegation to Colombo, vows deeper trade, investment and supply chain cooperation under Belt and Road blueprint
China’s Commerce Minister Wang Wentao has laid out a three-pronged economic strategy to deepen bilateral ties with Sri Lanka, marking a significant inflection point in the island’s international economic diplomacy. Speaking at the Sri Lanka–China Trade and Investment Forum 2025 in Colombo yesterday, Wang proposed an ambitious framework to elevate trade flows, expand industrial investments, and defend global multilateralism amid a climate of rising protectionism.
Addressing a packed audience of policymakers, diplomats and executives, the minister underscored the centuries-old camaraderie between China and Sri Lanka — a relationship born of ancient maritime routes and now recalibrated for the 21st century through Beijing’s Belt and Road Initiative (BRI).
“China and Sri Lanka enjoy a millennium-long friendship,” Wang said, referencing the historic Rice-Rubber Pact of 1952 and the more recent development of strategic infrastructure projects like Colombo Port City and the Hambantota Port. “Our modern cooperation is built on sincerity, mutual assistance and shared prosperity.”
Wang’s remarks come against the backdrop of a shifting global trade landscape, where emerging economies such as Sri Lanka are seeking to secure growth anchors through strategic partnerships. His address marked the centrepiece of a visit that saw 115 Chinese representatives from 77 companies participate in one of the largest commercial missions China has ever dispatched to South Asia.
Minister Wang’s roadmap centred on three strategic pillars:
Expanding Trade and Economic Cooperation
Deepening Industrial and Investment Linkages
Defending Multilateralism and Economic Openness
In practical terms, the Chinese minister called for the revival of the China–Sri Lanka Joint Committee for Economic and Trade Cooperation — a bilateral platform that has remained dormant in recent years. He encouraged greater use of Chinese trade expos, such as the China International Import Expo (CIIE) and China Consumer Products Expo, to showcase Sri Lankan goods, particularly high-potential exports such as Ceylon tea, spices, apparel and semi-precious stones.
“We want to see more Sri Lankan products in Chinese households,” Wang said, adding that the Chinese middle class is increasingly receptive to foreign brands that are tied to cultural heritage, sustainability and premium quality.
On the investment front, Wang’s message was clear: Chinese capital is ready to move beyond infrastructure into high-value sectors. He urged Chinese enterprises to explore opportunities in green technology, digital industries and low-carbon manufacturing.
China, he said, is keen to partner with Sri Lanka in building industrial and supply chain cooperation zones — a model Beijing has used in Africa and Southeast Asia to catalyse employment, boost local value chains, and create export-ready manufacturing clusters.
Sri Lanka’s State Minister for Investment Promotion, Dilum Amunugama, echoed these ambitions in his welcome speech: “We are entering a new phase of targeted industrialisation, and we believe Chinese firms can play a catalytic role in our transition to a smart, green, export-led economy.”
Wang’s third pillar — defending multilateralism — took aim at the global rise of trade nationalism and fragmentation. Without naming the United States or the European Union directly, the commerce minister warned that the erosion of WTO-centric norms and the weaponisation of trade policy posed existential risks to developing economies.
“At a time when the global economy faces many uncertainties, China remains a dependable partner committed to openness, fairness and mutual development,” he said.
His remarks will be closely watched in Brussels and Washington, both of which have grown increasingly wary of China’s growing footprint in the Indo-Pacific. In contrast, Sri Lanka, grappling with post-crisis recovery, appears eager to double down on its Eastward pivot.
China-Sri Lanka bilateral trade reached a record $5.36 billion in 2024, reflecting a 13.4% year-on-year increase. This makes Sri Lanka China’s fastest-growing trade partner in South Asia — a region where Beijing has often played second fiddle to India in historical and cultural ties.
Though the balance of trade remains tilted in China’s favour, with Sri Lankan exports comprising a modest share, Colombo’s economic managers hope to narrow the gap by targeting niche segments such as premium wellness products, seafood, and sustainably sourced garments.
Sri Lanka’s Department of Commerce confirmed that gems and Ceylon tea remain the top export performers to China, with increasing traction in e-commerce channels like JD.com and Alibaba’s Tmall.
Much of the goodwill driving this latest overture stems from longstanding Chinese investments in Sri Lanka’s physical infrastructure under the BRI. While some projects — such as the Hambantota Port lease — have attracted criticism for debt dependency and strategic overreach, others like the Colombo International Container Terminal (CICT) and the Lotus Tower have been cited as examples of successful public-private partnerships.
Port City Colombo, a flagship $1.4 billion BRI project, is now marketing itself as a financial and services hub with tax incentives to attract regional investors. The Chinese delegation’s itinerary included a visit to the site, with several firms expressing interest in logistics, fintech, and green urban solutions.
“Port City is not just concrete and glass,” said Liu Zhiyong, CEO of Sichuan Baoli Investment Group. “It’s a platform for co-creating a modern economy — and we see great synergy between China’s industrial capacity and Sri Lanka’s strategic location.”
China’s engagement with Sri Lanka isn’t solely economic. Wang emphasised Beijing’s support for Sri Lanka’s social development through grants, scholarships, medical aid and capacity building. China has donated medical equipment during the pandemic, supported post-disaster housing in the Northern Province, and funded vocational training initiatives in logistics and information technology.
“Our friendship is rooted in people-to-people exchanges, not just contracts,” Wang said. “We want to be Sri Lanka’s long-term partner in development, not just its investor.”
Following the Forum, Chinese and Sri Lankan businesses engaged in over 350 pre-arranged B2B meetings, covering sectors such as agribusiness, pharmaceuticals, construction, fintech and tourism. At least 11 memoranda of understanding (MoUs) were signed, including two joint ventures in electric vehicle assembly and agro-processing.
Notably, Jiangsu Dongfeng Eco-Mobility announced a feasibility study for assembling mid-sized electric buses in Sri Lanka, aimed at both domestic transit use and re-export to regional markets.
Sri Lankan authorities are optimistic that these partnerships will translate into FDI inflows within the next 12–18 months. “It’s not just about speeches and selfies,” said K.D. Rajapaksa, Director-General of the Board of Investment (BOI). “We’re focused on implementation and timelines.”
While the Colombo Forum was outwardly celebratory, it is difficult to ignore the geopolitical undercurrents. China’s growing presence in Sri Lanka — a nation straddling vital Indian Ocean sea lanes — has alarmed both Washington and New Delhi.
India, in particular, has ramped up its own economic overtures in recent years, including currency swap lines, oil credit facilities and cultural diplomacy. However, analysts point out that China’s combination of state-backed finance, rapid project execution, and long-term commercial ambition gives it a distinct advantage.
For Colombo, the challenge lies in managing these relationships without appearing to tilt too far in any direction. “It’s about strategic balancing,” said Dr. Nishan de Mel, Executive Director at Verité Research. “Sri Lanka must engage China for growth, but maintain transparency, sovereignty and regional balance.”
As the forum concluded, Minister Wang struck a hopeful yet pragmatic tone. “This is not a one-time event,” he said. “It’s a new beginning.”
His sentiments were echoed by Sri Lankan Trade Minister Nalin Fernando, who lauded the Chinese delegation’s depth and diversity. “What we’re seeing is not just diplomacy but deal-making. This is exactly the kind of partnership Sri Lanka needs right now.”
Whether these sentiments materialise into measurable outcomes will depend on political will, institutional coordination, and the pace of regulatory reform in Sri Lanka. But for now, Colombo is basking in the attention of its most powerful Asian partner — one that has shown, once again, that its appetite for influence in South Asia remains far from sated.
-By LeN Economic Correspondent
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by (2025-05-31 22:44:04)
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