In a major diplomatic and economic milestone, Chinese Commerce Minister Wang Wentao led the largest-ever Chinese business delegation to Sri Lanka, unveiling a comprehensive roadmap to deepen bilateral ties and enhance investment flows under the Belt and Road Initiative (BRI).
Addressing the Sri Lanka–China Trade and Investment Forum 2025 in Colombo, Wang emphasized the enduring “millennium-long friendship” between the two nations and laid out a strategic three-pillar plan: expanding bilateral trade, advancing green and digital investment, and reinforcing multilateral cooperation.
He called for the revival of the dormant China–Sri Lanka Joint Committee for Economic and Trade Cooperation, and encouraged stronger presence of Sri Lankan products like Ceylon tea, spices, and apparel in Chinese markets.
The high-level forum, which drew 115 delegates from 77 Chinese companies, also featured speeches from Chinese Ambassador Qi Zhenhong and Sri Lanka’s Board of Investment (BOI) Director General Renuka Weerakone, who made a compelling pitch for greater Chinese participation in Sri Lanka’s economy.
Weerakone highlighted Sri Lanka’s growing attractiveness as an investment destination, citing liberal policies such as 100% foreign ownership, full repatriation of profits, and constitutional investment protection. She noted that Chinese investments in Sri Lanka already total $3.5 billion, generating around 5,000 local jobs.
To further incentivize investors, the BOI chief detailed several benefits, including:A 15% reduced corporate tax rate for export services,100–200% capital allowances, and Duty exemptions on raw materials and imports,and a “Green Channel” for efficient customs clearance for high-performing firms.
She also outlined the criteria for non-BOI firms to qualify for BOI benefits, including capital thresholds starting from $250,000 for manufacturing and $5 million for mixed development projects.
Weerakone identified textile and apparel, pharmaceuticals, automotive components, rubber-based products, minerals, and tourism as priority sectors for foreign direct investment (FDI). She also emphasized high-growth sectors like ICT and digital services, education, agriculture and food processing, and renewable energy.
“Sri Lanka is uniquely positioned with its skilled workforce, strategic location, and market access,” she said, citing preferential trade access to 27 EU nations under GSP+, along with free trade agreements with India, Pakistan, Singapore, and Thailand.
The BOI also spotlighted ready-to-invest projects in hospitality, IT, education, pharmaceuticals, and logistics, encouraging immediate participation from Chinese businesses.
As China looks to scale up its global partnerships, Wang’s visit underscores the strategic weight Beijing places on Sri Lanka within its regional economic architecture. For Colombo, the visit signals a new chapter of intensified economic collaboration that could play a vital role in its post-crisis recovery and growth.
