China affirms strategic trade and investment commitment to Sri Lanka under BRI

• Four top Chinese Chambers of Commerce pledge to boost economic partnership with SL at 2025 Trade and Investment Forum 
• Focuses enhanced economic cooperation with SL across machinery, agriculture, textiles and private investments 
• CCCME Vice President Liu Chun highlights 74% YoY growth in machinery and electronics trade and calls  for deeper manufacturing and tech cooperation
• CFNA President Cao Derong praises Sri Lanka’s black tea success; calls  for stronger supply chains and quality control in seafood, fruits and spices
• CCCT Vice Chairman Zhang Xi’an stresses textile sector integration, citing Sri Lanka’s EU market access as draw for Chinese investment
• CICCPS Vice President Yan Gaoming proposes to finalise China-Sri Lanka FTA, create industrial zones in Colombo and Hambantota, use local currency to mitigate forex risk in joint infrastructure and energy projects

By Charumini de Silva

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.

Chun noted that the corporation covers the areas of infrastructure including ports, terminals, industrial parks, and all sectors of power and renewable energy. 

“At present, there seems to be a trend to expand the partnership into the areas including advanced manufacturing, green development, finance and digital innovation with growing projects in commercial products, electronics, home appliances, energy equipment and IT products,” 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.

Derong opined Sri Lanka’s black tea stood out as a key success story, accounting for nearly half of China’s global imports in 2024. 

“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. 

He said the booming demand for ready-to-drink tea products in China has placed Sri Lankan tea at the forefront of consumer preferences. “This year, the market size of China’s ready-to-drink tea industry is expected to reach 370 billion RMB. Sri Lankan black tea, as a key ingredient in China’s ready-to-drink tea products, is deeply loved by Chinese consumers,” he added.

Additionally, he highlighted Sri Lanka’s rich seafood varieties, producing tuna, mud crabs, lobsters, cuttlefish, squid, sea cucumbers, shrimp and other products. 

“China has a strong demand for seafood, importing $ 18.2 billion worth of seafood globally in 2024. In 2024, China imported $ 12.29 million worth of seafood from Sri Lanka, indicating significant potential for increased imports in the future,” he stressed.

Derong also pointed to the abundant fruit resources in Sri Lanka, citing the massive demand for those in China. 

He said during the first quarter of 2025, China imported $ 2.53 million worth of coconut milk from Sri Lanka, a 527-fold increase. 

“At present, China has opened market access for Sri Lankan bananas and pineapples, though the import volume remains small. As Sri Lanka further improves the standards and quality control of its bananas, pineapples, coconuts, and other products, these items will enter the Chinese market more smoothly,” he added.

As a spice-rich nation, Derong said Sri Lanka has unique advantages in the spice industry. “In 2024, China imported $ 340 million worth of flavours and spices globally, but only $ 600,000 from Sri Lanka,” he noted.

He emphasised the importance of strengthening bilateral supply chain and quality control mechanisms, noting that increased collaboration in seafood, fruits and spices could unlock significant untapped potential.

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.

“Sri Lanka has a strong industrial base of garment processing, especially to the EU-exports enjoying GSP preferences, 85% of the products duty-free access to the EU market,” he added. 

Noting that China’s textile and garment industry is experiencing a critical period of transformation and upgrading, coupled with the needs of the global layout of the industrial chain, he said Sri Lanka is becoming an important destination country for Chinese textile and garment enterprises’ investment and capacity cooperation.

“Looking ahead, in the face of the global sustainable development trend, the Chinese and Sri Lankan industries can further deepen their cooperation, give full play to the cost advantage of Sri Lanka, and leverage on Chinese technology and brand resources, so as to provide a broader space for the production capacity cooperation between the two sides,” he added.

The CCCT Vice Chairman asserted that the potential for further integration, especially as Chinese companies seek international investment opportunities and production bases aligned with global sustainability goals.

The forum, Xi’an said, represents an opportunity to construct an ‘Indo-Pacific textile corridor’, leveraging Sri Lanka’s cost advantages and China’s technological prowess to reshape regional textile supply chains.

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. 

“As a national and international chamber supervised by the All-China Federation of Industry and Commerce (ACFIC) under the guidance of China’s Ministry of Commerce, CICCPS has over 5,000 enterprises as our members, with collaborative projects spanning more than 60 countries along the Belt and Road Initiative,” he added. 

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.

“Firstly, we look forward to finalising the China-Sri Lanka FTA to reduce tariff barriers, expand market access for service trade, and establish an institutionalised open platform for businesses from both nations. Secondly, industrial zones will focus on labour-intensive industries such as automotive components, textiles, apparel, and agricultural processing, supporting Sri Lanka’s industrialisation. Thirdly, China and Sri Lanka should explore an integrated model of “loan + investment + construction” to advance projects in infrastructure and renewable energy,” he added.

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. 

The CICCPS Vice President also introduced his own company ZXJOY Invest, which is preparing to launch mineral development projects in Sri Lanka. 

The forum concluded on a high note with delegates from both sides expressing optimism and engaging in B2B discussions about the direction of China-Sri Lanka economic relations. 

Pix by Upul Abayasekara