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Sri Lanka, China ink MoUs on trade partnership
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”.
News
Theft of USD 2.5 mn from Treasury: CoPF accused of complicity in NPP cover-up
Harsha rejects what he called frivolous accusations
Chairman of Committee on Public Finance (CoPF) Dr. Harsha de Silva dismissed Free Lawyers’ claim that his Committee had helped delay a proper investigation into the theft of USD 2.5 mn (nearly Rs 1 bn) from the Treasury.
The Colombo District SJB MP said that he wouldn’t comment on frivolous accusations against his Committee. “We conduct ourselves in keeping with the highest standards of professionalism and responsibility.”
Dr. de Silva said so when The Island raised the Free Lawyers’ allegation that the Treasury and the Central Bank were using the CoPF as a tool to prolong investigations into the unprecedented theft of funds. Free Lawyers targeted the CoPF in a statement issued by Maithri Gunaratne, PC, and civil society activist Rajith Keerthi Tennakoon.
The other members of the CoPF are Harshana Rajakaruna (SJB), Ravi Karunanayake (NDF), Nimal Palihena (NPP), Wijesiri Basnayake (NPP), Thilina Samarakoon (NPP), Lakmali Hemachandra (NPP), Chathuranga Abeysinghe (NPP), Kaushalya Ariyaratne (NPP), Akram Ilyas (NPP), Shanakiyan Rajaputhiran Rasamanikkyam (ITAK), Champika Hettiarachchi (NPP), Sunil Rajapaksha (NPP),
M. K. M. Aslam (NPP), Ajith Agalakada (NPP), Rauff Hakeem (SLMC), Chitral Fernando (SJB) and Nishantha Jayaweera (NPP).
Tennakoon said the theft of funds happened over eight months ago and the Parliament owed the country a clear explanation regarding the disappearance of USD 2.5 mn. The CoPF, instead of expediting the process, has conveniently granted time for those responsible for the loss to cover up their tracks. “Free Lawyers pursue the issue at hand vigorously as we were the first to reveal the loss of USD 2.5 mn. Those who knew it remained silent until our disclosure,” he said, alleging that Speaker Dr. Jagath Wickremaratne was yet to respond to their letter regarding the USD 2.5 theft.
Responding to queries, Tennakoon said that political parties represented in the CoPF should be held responsible for the developing situation. “The Committee on Public Accounts Committee (CoPA) headed by SJB MP Kabir Hashim too, should explain its failure to deal with the USD 2.5 mn theft. Both CoPF and CoPA led by two SJB MPs should act now. Dr. de Silva and Hashim are answerable to the public, particularly because they represent the main Opposition.”
The CoPA consists of Kabir Hashim, Maj. Gen. Aruna Jayasekera (NPP), Sugath Thilakaratne (NPP), Anton Jayakody (NPP), Chandana Sooriyaarachchi (NPP), Ruwanthilaka Jayakody (NPP), Nalin Hewage (NPP), Oshani Umanga (NPP), Manjula Suraweera (NPP), Sagarika Athauda (NPP), Janaka Senarathna (NPP), K.Illankumaran (NPP), Dinidu Saman Henanayake (NPP), Susantha Kumara Navaratna (NPP), Lal Premanath (NPP), Aravinda Senarath (NPP), Thushari Jayasinghe (NPP), T. K. Jayasundera, Ajantha Gammeddage (NPP), Sundaralingam Pradeep (NPP), Kavinda Jayawardena (SJB), J.C. Alawathuwala (SJB),Hector Appuhamy (SJB), Kaveenthiran Kodeeswaran (ITAK), Chamara Sampath Dassanayake (NDF), Rohitha Abeygunawardena (NDF), M.L.A.M. Hisbullah (SLMC), M.A.M. Thahir (ACMC), Chanaka Madugoda (SLPP) and Sunil Ratnasiri (NPP).
Tennakoon said that both CoPF and CoPA were dominated by the NPP though the SJBers headed them. However, as heads of the two parliamentary committees, Dr. de Silva and Hashim, should be held responsible for lapses on the part of the committees or any deliberate omissions, Tennakoon said, questioning the rationale behind giving the Treasury and the CBSL six weeks to submit their findings to the CoPF.
Free Lawyers alleged that USD 2.5 had been released in spite of JP Morgan Chase and the Federal Reserve in the United States warning Sri Lanka about the suspicious nature of those foreign transactions via SWIFT messages. Tennakoon emphasized investigators should closely inquire into the decision taken to release funds regardless of such high-profile warnings.
Tennakoon said that the integrity of two key parliamentary committees is at stake. The civil society activist said that the country was in a highly critical phase of debt restructuring following a severe economic crisis. Tennakoon pointed out in terms of a condition of the International Monetary Fund (IMF) loan programme, the government’s debt management functions, previously carried out by the CBSL, were recently transferred to a new institution established under the General Treasury—the Public Debt Management Office (PDMO).
by Shamindra Ferdinando
News
Viral diseases on the rise
The number of patients hospitalised due to viral illnesses, including dengue fever, had increased significantly, health officials said yesterday, adding that there had been a rise in daily dengue-related admissions.
Acting Director of the National Dengue Control Unit Dr. Kapila Kannangara said Sri Lanka had recorded 41,144 dengue cases as of Saturday (13).
He said more than half of the reported cases—around 51 percent—were from the Western Province.
According to Dr. Kannangara, the number of dengue patients admitted to hospital daily had reached 750, but it had declined to around 630. However, he cautioned that infection levels remained “very high,” despite the slight drop in hospital admissions.
The dengue death toll has risen to 24, prompting several hospitals to issue red alerts amid continued pressure on wards treating incoming patients.
Health officials warned that the situation could worsen if case numbers continued to rise. Dr. Kannangara noted that the growing burden on healthcare facilities could eventually exceed system capacity.
The public has been urged to take preventive measures to eliminate mosquito breeding sites and to seek prompt medical attention if dengue symptoms develop.
by Chaminda Silva
News
Ranil warns of another economic crisis, calls for Opposition unity
Former President and UNP leader Ranil Wickremesinghe has warned that Sri Lanka is heading towards a severe economic crisis, alleging that the current administration is steering the country towards “total collapse.”
Addressing a meeting of the UNP Working Committee at the party headquarters on Flower Road on Thursday, Wickremesinghe claimed that the government was facing mounting difficulties on multiple fronts, with the economy continuing to deteriorate.
He also accused the administration of pursuing policies that, he said, marginalised war heroes and Buddhist monks.
Wickremesinghe expressed concern over what he described as an erosion of fundamental and legal rights, citing the arrest and alleged ill-treatment of former State Intelligence Service Chief Suresh Sallay as an example. He said the rising cost of living had emerged as one of the main concerns of the public.
Commenting on the political situation, the former President said the Opposition had not been able to forge unity among the anti-government forces and called for greater coordination among Opposition parties and groups. He advocated a phased mobilisation strategy, beginning at village and electorate level, instead of attempting to address all issues simultaneously.
Wickremesinghe also announced a series of political campaigns and rallies aimed at strengthening the Opposition movement. The programme is scheduled to commence in Kandy this weekend, with subsequent events planned in Kurunegala and Kalutara.
He said the UNP was engaged in discussions with several political parties and organisations, including those led by Minister Jeevan Thondaman, with a view to forming a broader political alliance.Wickremesinghe urged party members to expedite discussions and arrive at a collective decision on the way forward to address the country’s challenges.
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