A long-delayed free-trade agreement (FTA) between Sri Lanka and China appears to be back on the agenda, even as analysts warn that the crisis-hit South Asian nation is not expected to benefit much from it for years after its implementation.
Sri Lanka’s officials are cautiously optimistic the FTA could help narrow the country’s huge trade deficit with China.
First proposed in 2014, talks between both sides for an FTA have been on hold for the past six years because Sri Lanka did not agree to some of the terms.
Last week, Chinese Commerce Minister Wang Wentao called for a comprehensive FTA between the two countries “in one package”. Speaking at the Sri Lanka–China Trade and Investment Forum in Colombo, Wang said negotiations for the agreement should be based on “mutual benefit”.
His comments came after Sri Lankan President Anura Kumara Dissanayake in January visited Beijing where he met President Xi Jinping and other Chinese leaders to discuss deepening bilateral ties in various fields. During the trip, China pledged to support Sri Lanka’s economic development and enhance cooperation in the Belt and Road Initiative.
Among the belt and road projects that China has developed in Sri Lanka in recent years are the Mattala Rajapaksa International Airport, the Hambantota International Port and the Port City Colombo.
