Sri Lanka’s President Anura Kumara Dissanayake (AKD) concluded a successful four-day state visit to China on January 17. During his stay, President AKD held formal discussions with Chinese President Xi Jinping and met with Chinese Premier?Li Qiang?in Beijing.

This visit underscores President AKD?administration’s dedication to strengthening ties with a nation that shares a deeply rooted, centuries-old relationship with Sri Lanka. From the historic Rubber-Rice Pact to collaborative achievements under the Belt and Road Initiative (BRI), China and Sri Lanka have built a legacy of enduring diplomatic relations over the past six decades.

Strengthening economic ties

The new administration’s commitment to advancing its partnership with China under the BRI framework is widely regarded as a significant step in bolstering Sri Lanka’s economic resilience and sustainable development. Chinese President Xi Jinping reaffirmed China’s active support for Sri Lanka’s economic recovery and emphasized a shared vision for high-quality BRI cooperation.

Both nations agreed to expedite the progress of signature infrastructure projects, including Port City Colombo (PCC) and the Hambantota Port integrated development project. The PCC, a multi-service Special Economic Zone (SEZ), is poised to transform Sri Lanka into a regional financial centre and business hub, offering unprecedented opportunities in investment, trade, and lifestyle. Similarly, the Hambantota Port project aims to establish the port as a major industrial and logistics hub. By integrating manufacturing zones within close proximity to vital shipping lanes, Hambantota offers substantial cost and time savings for global investors.

Deepening cooperation in more areas

Sri Lanka secured its largest-ever foreign investment during this visit through a deal with the Chinese state-owned oil giant Sinopec. The agreement?covers a commitment of $3.7 billion for the construction of a state-of-the-art oil refinery in Hambantota with a capacity of 200,000 barrels per day. China also agreed to construct a state-of-the-art exhibition and convention centre at the Port City Colombo, which will position Colombo Port City as a hub for global conferences and exhibitions.

In January, Port City Colombo marked another milestone with the groundbreaking ceremony for its Marina Development, a $120 million investment scheduled for completion by 2027. Moreover, a Chinese firm committed $25 million to establish a 62,000-square-meter sponge mattress manufacturing facility in Hambantota. Hambantota International Port (HIP) also invested $41 million in advanced crane technology to enhance its capacity to handle up to 1 million TEUs, further solidifying its importance as a logistics and industrial hub.

These investments address Sri Lanka’s urgent need for foreign capital to alleviate its economic challenges. Increased cash flow from these ventures can stabilize public finances, reduce deficits, and create significant employment opportunities in construction, manufacturing, logistics, and services.

President AKD’s administration also seeks China’s assistance in modernizing Sri Lanka’s agricultural sector. China has expressed readiness to collaborate on training and demonstration programs in biotechnology for tropical crops, plant breeding, aquaculture, and sustainable agriculture. China also?encouraged Sri Lanka to expand exports of distinctive products, including tea, fruits, cinnamon, and aquatic goods, to the Chinese market.

Both countries pledged to accelerate negotiations for a comprehensive free trade agreement based on equality, mutual benefit, and win-win outcomes. The agreement is expected to position Sri Lanka as a strategic base for Chinese manufacturers, enabling them to leverage the country’s location to access global markets at competitive prices.

President AKD participated in an investment forum organized by Chinese state and private enterprises, where he invited Chinese investors to explore opportunities in Sri Lanka. He emphasized the nation’s stable governance and commitment to economic transparency.

Additionally, President AKD held discussions with officials from Sichuan Province, renowned for its advancements in agriculture, manufacturing, and technology. This collaboration opens new avenues for Sri Lanka to strengthen ties with China’s regional economies.

A successful visit with optimistic outcomes

President AKD’s state visit to China is widely regarded as a major success. It provided a platform to reinforce bilateral ties, expand cooperation in critical sectors, and secure substantial investments. The agreements reached during the visit are expected to yield tangible, mutually beneficial outcomes, driving Sri Lanka’s economic growth and resilience.

This visit further cements the long-standing partnership between China and Sri Lanka, paving the way for increasing?strategic collaboration. With China’s expertise, resources, and commitment to fostering sustainable development, Sri Lanka is poised to achieve its economic objectives and emerge as an active?player in the global economy.?China also had pledged a 500 million yuan grant to Sri Lanka, during AKD’s recent visit. The non-repayable funds will be utilized to eradicate rural poverty and improve public services.

The Sri Lankan people hold high expectations for President AKD’s government, seeking tangible improvements to address the nation’s pressing challenges. These include economic stability and growth, enhancing public services, implementing cost-of-living relief measures, fostering agricultural and rural development, supporting farmers, promoting balanced foreign policy, strengthening diplomatic relations, and prioritizing sustainable development and environmental protection.

By effectively addressing these critical areas, the AKD government can better meet the aspirations of the Sri Lankan people and lay the foundation for a more stable, equitable, and prosperous nation. The recent visit to China marks a significant step in this direction, serving as an introduction to the government’s roadmap to fulfilling its mandate—a vision that the Sri Lankan people eagerly await to see realized.

The article reflects the author’s opinions, and not necessarily the views of China Focus.