Sri Lanka China Trade Relation
2019-03-20
 

 Overview

 

Trade relations between Sri Lanka and China span a long history going back to several centuries. In the year 1952, opening a new chapter in trade relations between the two countries, China and Sri Lanka entered into a Trade Agreement relating to barter trade on rubber and rice (the Sino- Lanka Agreement on Rubber-Rice exports) on 17th December 1952 which was even before the two countries established diplomatic relations.  In 1957, China established diplomatic relations with Sri Lanka.

 

Trade and Payment Agreement was signed in 1982, which provided Most Favoured Nation (MFN) treatment for products of export and import of both countries.  In 1984 both countries signed an Agreement on Economic and Technical Cooperation and these two agreements were amalgamated in 1991 to form the “Sri Lanka-China Joint Committee for Trade and Economic Cooperation”.  The first Session of the Sri Lanka-China Joint Committee for Trade and Economic Cooperation was held in March 1992 in Colombo. Second, Third, Fourth and Fifth Joint Commission were held in 1996 in Beijing , 2000 in  Colombo, 2008 in Beijing and 2013 in Colombo respectively. During the Sixth Session which was held on 07th June 2014 in Beijing, both sides have agreed to launch the FTA negotiations during the visit of H.E the President of China to Colombo in September 2014.

 

On May 27 to 30, 2013, H.E the President of Sri Lanka paid a state visit to China and the two sides agreed to build strategic cooperative partnership with sincere and mutual assistance and enduring friendship. A MOU on Trade and Economic Cooperation between the two countries was signed on 28th May 2013 during the state visit and the both sides agreed to establish a Joint Working Group on Trade to study “feasibility of China – Sri Lanka Free Trade Agreement and issues of expanding development of Sri Lanka’s exports to China promoting trade balance.”  During high level bilateral meetings between two countries, the both sides discussed the ways of fast track the FTA negotiations.

 

Sri Lanka’s Trade with China:

Sri Lanka-China Trade (2005-2015) – Table 1

Year

Exports

Imports

Total Trade Turn over

Balance of Trade

2007

35.62

930.19

965.81

-  894.57

2008

47.83

1131.43

1,179.26

- 1,083.60

2009

59.25

1011.38

1,070.63

-  952.13

2010

89.11

1240.09

1329.2

- 1,150.98

2011

95.80

2133.63

2229.43

-2,037.83

2012

108.12

2568.01

2,676.13

-2459.89

2013

121.63

2962.59

3,084.22

-2,840.96

2014

173.48

3,414.40

3,587.88

-3,240.52

2015 

293.05

3731.64

4024.69

-3438.59

2016

199.15

4,273.58

4,472.73

-4,074.43















 
(Value in US $ Mn)

               Source: Sri Lanka Customs