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Sri Lanka, China ink MoUs on trade partnership

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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”.



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Fuel crunch looms

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Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

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Gnansara Thera to be assigned to prison printing section: Officials

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Bodu Bala Sena General Secretary Ven. Galagodaaththe Gnanasara Thera, who was taken into custody to serve the remainder of his prison sentence, was produced before the Colombo High Court yesterday by prison officials in connection with a warrant issued by the court. He appeared before the court in layman’s clothes. Pic by Nishan S. Priyantha.

by Norman Palihawadane

Bodu Bala Sena General Secretary Ven. Galagodaatte Gnanasara Thera, who has been ordered by the court to serve the remainder of his prison sentence, is to be assigned to the prison ‘printing work party’, prison officials said yesterday.

The monk was produced before the Colombo High Court yesterday by prison officials in connection with a warrant issued by the court.

He appeared before the court in civilian attire.

Prison sources said arrangements were being finalised for his detention and that he would subsequently be assigned to the printing work party.

The Thera initially objected when prison officials instructed him to change from his robes into the attire worn by convicted prisoners.

He later agreed to wear the prescribed prison clothes, sources said.

The Supreme Court, in September, annulled the presidential pardon granted to Gnanasara Thera in 2019. He had been serving a six-year prison sentence imposed following his conviction for contempt of court but had served only about nine months when then President Maithripala Sirisena granted him a presidential pardon in May 2019.

Following the Supreme Court ruling, the Thera was required to serve the remainder of his sentence. He was subsequently reported missing, prompting the Court of Appeal to issue an open warrant for his arrest.

The Court of Appeal on Monday ordered the authorities to enforce the remainder of his prison sentence.

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Speaker rejects Ajith Perera’s privilege complaint

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Speaker Dr. Jagath Wickramaratne yesterday ruled that a privilege complaint submitted by SJB Kalutara District MP Ajith P. Perera did not constitute a prima facie breach of parliamentary privilege.

The ruling was made in response to a notice of privilege submitted by Perera on October 02.

Perera alleged that his parliamentary privileges had been breached over the failure to take formal action or reach a final decision on a written request submitted on August 03 by 18 Opposition MPs seeking the appointment of a Special Select Committee to investigate delays in the judicial system and prison overcrowding.

He had also requested that the matter be referred to the Committee on Ethics and Privileges for investigation and recommendations.

In his ruling, Speaker Wickramaratne said the Speaker, as the Presiding Authority and guardian of the powers, rights and privileges of Parliament, could not be subjected to a privilege complaint or disciplinary inquiry by a committee subordinate to the Chair in respect of actions taken in an official capacity.

He said that, under the Standing Orders, the Speaker was required to independently determine whether a prima facie case of breach of privilege existed.

Referring a complaint against the Speaker to a committee functioning under the Speaker’s authority would, therefore, create a procedural contradiction, he said.

Accordingly, the Speaker ruled that Perera’s notice did not constitute a prima facie breach of parliamentary privilege and disallowed the request to refer the matter to the Committee on Ethics and Privileges.

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