China-Sri Lanka Economic Affiliations: Trends and Opportunities

Even though historical relationships between Sri Lanka and China date back over about 20 centuries based on shared religious and cultural values, the economic links and formal diplomatic relations were started in 1950s. Currently, Sri Lanka is having an enduring, multi-dimensional and deep-rooted relationship with China. The long-standing ties of closeness between the two countries are underpinned by mutual trust and confidence. A close identity of views and mutuality of intere st remain the hallmark of bilateral economic ties. 1952 Sino-Lanka rubber – rice pact and 1962 the First Agreement on Economic and Technological Cooperation are very important formal relations among them. More recently, economic and political ties have been strengthened between the two counties culminating in the establishment of formal diplomatic relations. The economic agreements signed in 1982; Sino – Lanka Joint Trade Committee and Sino – Lanka Economic and Trade Cooperation Committee were amalgamated in 1991 as the Sino-Lanka Joint Commission for Economic and Trade Cooperation. Further, Sri Lanka-China Business Cooperation Council was formed in 1994 and 8 bilateral agreements and Memorandum of Understanding (MOUs) were signed in 2007 on the occasion of golden jubilee celebrations of diplomatic relations between two countries.