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.

“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.

The meeting was jointly chaired by China’s Commerce Minister Wang Wentao and Sri Lankan Minister of Trade, Commerce, Food Security and Co-operative Development Wasantha Samarasinghe. “Both sides exchanged in-depth views on advancing high-quality Belt and Road Initiative cooperation, expanding trade and investment, and safeguarding the multilateral trading system,” the Chinese Embassy’s post said.

Minister Wang also met President Dissanayake during his visit.

According a statement issued by the 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.”

“We discussed enhancing our trade relations and expediting development projects in Sri Lanka. Exciting times ahead with increased interest from Chinese investors,” the President said on social platform ‘X’ following the meeting.

The bilateral initiatives take off from deliberations held during President Anura Kumara Dissanayake’s visit to China in January this year, soon after he visited India in December 2024, making New Delhi his first stop abroad after assuming office in September 2024.

A joint statement issued on Dissanayake’s China visit said the two sides agreed to work on the “early conclusion of a comprehensive free trade agreement.” Speaking at an investors’ forum in Colombo during his visit Mr. Wang, according to local publication Economynext, said: “It is hoped that the two sides continue to work toward the conclusion of a comprehensive free trade agreement in one package, in line with the principles of equality, mutual benefit.”

New Delhi and Beijing are keen to cultivate close ties with the leftist Sri Lankan leader, who has repeatedly emphasised a non-aligned foreign policy that would prioritise Sri Lanka’s interests. India and sections within Sri Lanka have been highlighting the need to resume bilateral talks on Economic and Technological Cooperation Agreement (ETCA) — stalled at different points — especially in the context of U.S. President Donald Trump’s decision to slap tariffs on trade partners. During Prime Minister Narendra Modi’s visit to Sri Lanka in April 2025, the two sides inked seven MoUs, including one on defence cooperation.

Last month, Sri Lanka’s Cabinet approved a proposal for a Memorandum of Understanding (MoU) between China’s Chongqing Transmission Corporation Limited and the state-run Rupavahini Corporation to “promote mutual understanding, strengthen cooperation, and exchange training opportunities in the field of media”.