Abstract

This paper examines the recent trends in the economic relations between Sri Lanka and China
focussing on trade, investment and tourism dimensions. Although bilateral economic ties between
Sri Lanka and China have strengthened over time, the article demonstrates Sri Lanka’s low rank
among China’s economic partners. For example, while China is the second-largest tourism partner of
Sri Lanka in terms of tourist arrivals, Sri Lanka does not rank among even China’s top 25 tourist
destinations. Consequently, the article recommends certain policy priorities to ensure mutually
beneficial economic relations. With regards to tourism, it recommends promoting Sri Lanka’s brand
on Chinese e-tourism websites and social media, introducing user-friendly tourist apps in Chinese,
strengthening air connectivity and celebrating Chinese festivals. Similarly, trade and investment
could be facilitated by stronger links with Chinese cities and connecting Sri Lankan students in China
to the Chinese industry via internships and building commercial networks from the ground up.

Diplomatic relations between Sri Lanka and China were established in 1957. The first agreement
after establishing diplomatic relations was on Economic and Technical Cooperation, signed in 1962,
following Prime Minister Sirimavo Bandaranaike’s visit to China. This helped Sri Lanka receive more
assistance towards infrastructure projects, such as the Bandaranaike Memorial International
Conference Hall (BMICH). In 1963, the two countries signed an agreement on commercial maritime
relations. The China-Sri Lanka Joint Trade Committee was formed in 1982, while an Agreement on
Economic and Trade Cooperation as signed in 1984. These two arrangements were merged in 1991
to form the Sri Lankan-Chinese Joint Commission. The Joint Commission had broader objectives,
including the exchange of information and the extending of loan facilities for various development
projects. In 1994, Sri Lanka-Chinese Business Cooperation Council was established with the objective
of further improving trade and investment relations between the two countries. Regarding
cooperation in international forums, Sri Lanka co-sponsored the draft resolution that facilitated
China’s admission to the UN Security Council in 1971. Sri Lanka also supported China’s entry into the
World Trade Organization (WTO) in 2001.

Over the last ten years China has been paying renewed attention to its ties with Sri Lanka. There has
been a large rise in Chinese investments in various projects in Sri Lanka. Beijing has also
diplomatically supported Colombo on various issues, especially on charges of human rights
violations. In return, Sri Lanka has played an important role in helping China enhance its influence
and prestige in the South Asian region. Notably, since taking over as president, Xi Jinping has
accorded special focus to this relationship. Xi visited Sri Lanka in September 2014, the first visit by
any Chinese President, in 28 years.1 A study of the growing Chinese involvement in Sri Lanka could
be divided into two phases. The first would roughly coincide with the end of the Eelam War in May
2009 under President Rajapaksa, to the end of 2014. The next phase would constitute the period
from January 2015 when Rajapaksa lost the election and Sirisena assumed the presidency, to till
date. The period under Rajapaksa was marked by major initiatives to strengthen the relationship
with China. The warmth between China and Sri Lanka grew after 2009 because China was one of the
few countries that continued to supply arms and defence equipment to the Sri Lankan Army during
its war against the Liberation Tigers of Tamil Eelam (LTTE). Beijing also prevented the issue of
genocide and killing of Tamil civilians from being taken up by international organisations. But these
were not the only reasons for Rajapaksa’s strong pro-China tilt; perhaps it was also because of his
personal anti-India agenda, in the latter half of his tenure.

section I will outline and justify the research methods that I have chosen. I will use sunders et
al, research onion model (2012). I will focus question that already shared in the introduction,
and involve explaining aspects including why i chose secondary research methods over
primary and qualitative over quantitative, more importantly though, it will provide a
justification for the chosen methodology and a detailed explanation of its practical application

 Historical and cultural ties between the two countries extend back hundreds of years.[1] [2]
Diplomatic ties between Sri Lanka and China have being very close especially during Sri Lanka
Freedom Party governments. On February 7, 1957, China and Sri Lanka established diplomatic
relations.[3] In 1996, then Sri Lankan President Chandrika Bandaranaike Kumaratunga paid a
state visit to China at the invitation of then Chinese President Jiang Zeming. The two sides
signed two agreements to enhance economic cooperation. Relations between both countries
during the rule of Sri Lankan president, Mahinda Rajapaksa, resulted in many agreements and
saw closer relations due to Rajapaksa's pro-China stance.[4] Under previous Sri Lankan
president, Maithripala Sirisena, relations remain strong with Sirisena interested in balancing both
Chinese and Indian influence in the country.[5][6] Despite this, recent developments have shown a
pro-China tilt in Sri Lanka's current foreign policy evident in the continued Chinese investment in
Sri Lanka and the country's support of China's position in the South China Sea dispute.[7][8][9]
Sri Lanka is a major country on the String of Pearls which is part of the Chinese strategic
initiative in the Indian Ocean, known as the Maritime Silk Road and is part of the bigger
development strategy known as the One Belt, One Road.[1]

his article fills a gap in the literature by focusing on the growing economic links between
China and Sri Lanka. Starting from the 1952 Rubber-Rice Pact, the economic relations
between the two countries have grown over the years with an unprecedented growth since
2005. Chinese military assistance helped overcome three decades of conflict in North/East
Sri Lanka and Chinese financial assistance to other areas of the Sri Lankan economy, in
particular, infrastructure development have also strengthened. Although Sri Lanka’s trade
and investment links with China are not very strong, the increased Chinese financial
assistance has had some spill over effects in strengthening these in recent years. Sri Lanka
will sign a Free Trade Agreement with China most probably in 2014 but growing economic
relations with China present both opportunities and challenges to Sri Lanka.

China-Sri Lanka Relations in the 21st Century

In the 21st century, Sri Lanka and China relations have seen robust growth.
Sri Lanka and China upgraded bilateral relations to a strategic cooperative
partnership during the former Sri Lanka President Mahinda Rajapaksa’s
visit to China in 2013. There have also been several high-level visits by the
heads of state of the two countries. Chinese President Xi Jinping visited Sri
Lanka in 2014, while the current President of Sri Lanka, Maithripala
Sirisena, visited China several times over the last three years. In addition,
in 2017, Sri Lanka and China celebrated the 60th anniversary of the
establishment of diplomatic relations.

China has now become a major trading partner of Sri Lanka’s. The total
trade turnover between Sri Lanka and China was USD 4202 million in
2017; although the trade balance is not in our favour, the bilateral trade
relationship is nevertheless beneficial to Sri Lanka. A further M0U on Trade
and Economic Cooperation was signed in May 2013, where both countries
agreed to establish a joint working group to study the feasibility of a China-
Sri Lanka free trade agreement, and to discuss the expansion of Sri
Lankan exports to China. The negotiations relating to the FTA are ongoing.

China has also been a major partner in Sri Lanka’s drive towards economic
development. China has committed financial assistance by way of grants
and loans for priority development projects in Sri Lanka. There are currently
several projects that have been or are being built with Chinese assistance,
of which the major ones are the Hambantota Port, the Mattala International
Airport, the Colombo-Katunayake Expressway, the Narocholai Coal Power
Plaint, the Moragahakanda Multipurpose Development Project (which deals
with irrigation, drinking water, and electricity), the Matara-Kataragama
Railway Line, and the Colombo International Financial City. China is also
assisting in building a specialised hospital for kidney disease, as well as an
outpatients’ building at the National Hospital in Colombo.

At least two of these projects—the Colombo International Financial City

and the Hambantota Port—are flagship projects under China’s Belt and
Road Initiative, which Sri Lanka has agreed to actively participate in. Sri
Lanka believes that, in the long run, active participation in the BRI initiative
will help it achieve its goal of becoming a trade and maritime hub in the
Indian Ocean, by developing infrastructure to promote trade, investment
and tourism. While there has been concern in certain quarters about the
possible use of certain BRI projects in Sri Lanka— specifically the
Hambantota Port— for Chinese military purposes, the government of Sri
Lanka has emphasized that the port would be used by China only for
commercial purposes.

Conclusion

Sri Lanka’s relationship with China have therefore evolved through

Buddhism, trade and aid to more strategic ties based on infrastructure
development and global connectivity. In addition, China had always
supported Sri Lanka in global forums (especially during the civil war and
immediate post-war period), based on a shared understanding of certain
basic norms of international relations, such as non-interference in the
internal affairs of states. As such, China has been and will be an in
indispensable partner in Sri Lanka’s economic development, as well as a
dependable friend to Sri Lanka on the global stage.

This paper examines the impact of

The main objective of this study is to identify

The data gathered, was statistically analyzed in order to support or reject the
research hypothesis

The data gathered, was statistically analyzed in order to support or reject the
research hypothesis

The research approach is mixed method and data was gathered through
questionnaire survey and structured telephone interviews. The research findings
indicate that the impact of

This research focuses primarily on the contemporary issues of

. The research objectives are to study the contemporary issues of

Research problem is “what are the contemporary issues of women migrant

entrepreneurs in developing countries?”. As the research methodology,
qualitative research methodologies are used. The research identifies the
economic impact,

As a result of the analysis

The aim of this study was to discover

Qualitative analysis was used with purposive sampling method and data was
collected through interview method.