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China - Sri Lanka are Meeting the Golden Age of Trading
2015-01-28 16:02
Chinese President Xi Jinping's visit to Sri Lanka is a mile stone of China – Sri Lanka trading tie
President Xi Jinping visited Sri Lanka in September of 2014. The visit strengthen the strategic partnership and the free trade negotiations and boosted bilateral trade growth with great influence on relations of the two countries.
President Xi proposed to deepen the strategic partnership, initiate free trade agreement negotiation, and increase the use of domestic currency in bilateral trade and investment. The prospect for cooperation between the two countries becomes brighter than ever.
President Xi emphasized the concept of 21 Century Maritime Silk Road, which was positively responded by Sri Lanka authorities. As an air hub connecting Asia, Africa and Europe, Sri Lanka is an important country partner of the Silk Road as well as a main beneficiary.

Closer trading tie, increasing trade volume
The bilateral trade volume between China and Sri Lanka totaled 3.62 billion dollars in 2013. China is Sri Lanka’s second largest trade partner and second largest source of imports.
From January to September of 2014, the bilateral trade volume totaled 2.737 billion dollars, a year-on-year growth of 5.93%. China’s imports from Sri Lanka increased by 31.4%.
Among the top ten import categories of Sri Lanka, China’s building material, hardware, machinery, home suppliers, furniture, textile, footwear and consumer goods hold a favorable place.
Besides the above mentioned products, Sri Lanka also imports mechanical and electrical goods, cotton and iron and steel products from China.
The long-term friendly and cooperative relations between the two nations make it easier to establish China- Sri Lanka Free Trade Zone. Once the free trade agreement is signed, China’s goods can enter Sri Lanka duties free. Sri Lanka will become a gateway for China to expand South Asia market.
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