By: Staff Writer
June 02, Colombo (LNW): In a bold bid to revive its economy, Sri Lanka has extended a direct invitation to high-level Chinese companies to form joint ventures with local counterparts in key growth sectors including agro-processing, fisheries, ICT and BPO, apparel, tourism, and renewable energy.
The announcement was made by Labour and Economic Development Deputy Minister Dr. Anil Jayantha Fernando at the “Sri Lanka and China Trade and Investment Forum 2025” held in Colombo.
The forum, co-hosted by the Ceylon Chamber of Commerce and Chinese business chambers, marked a significant deepening of Sino-Lankan economic ties. Attended by China’s Commerce Minister Wang Wentao, Ambassador Qi Zhenhong, and over 100 Chinese delegates from 77 firms, the event symbolized Sri Lanka’s push to convert diplomatic goodwill into tangible investment.
Dr. Fernando emphasized the importance of moving from dialogue to concrete action, calling the event “a special step in our journey” and underlining the island’s commitment to attracting ethical, sustainable, and value-added investment.
He presented Sri Lanka’s improved macroeconomic indicators—including 5% GDP growth, $12 billion in exports, and over 2 million tourist arrivals in 2024—as signs of renewed potential.
China’s presence, through four major chambers of commerce, points to serious interest in sectors like agriculture, manufacturing, clean energy, textiles, and digital services. Business-to-business meetings focused on partnerships in the automotive supply chain, tea plantations, clean technology, and engineering further underscored this momentum.
However, this strategic alignment with China raises geopolitical concerns, particularly for India. New Delhi, which provided over $4 billion in aid to help Sri Lanka navigate its recent economic crisis, may view Colombo’s pivot toward Beijing with caution.
India has long regarded the Indian Ocean region as its sphere of influence, and growing Chinese economic entrenchment—especially through joint ventures—could be perceived as a challenge to regional balance.
Sri Lanka’s balancing act is delicate. While the economic lifeline offered by China could accelerate recovery, the island nation must manage its diplomatic relationships carefully, ensuring that increased Chinese investment does not strain its ties with India or other regional partners.
Critics warn that overdependence on China could echo past debt-related pitfalls, while others argue that diversified partnerships are essential for long-term resilience.
As Sri Lanka and China near the 70th anniversary of diplomatic relations, the forum marks a turning point—one that could shape the nation’s economic and geopolitical trajectory for years to come.
