With the growing trade relations between China and Sri Lanka, the two countries have inked several agreements in recent times. These deals are aimed at boosting economic cooperation and bringing about mutually beneficial outcomes for both countries. Here are some of the noteworthy China-Sri Lanka agreements:
1. Hambantota Port lease agreement
One of the most significant China-Sri Lanka deals was the lease agreement signed between China’s state-run company China Merchants Port Holdings and Sri Lanka Port Authority in 2017. The agreement saw the transfer of the operations and management of the Hambantota Port to the Chinese company for 99 years, in exchange for a loan of $1.1 billion. The deal was aimed at developing the infrastructure of the port and increasing its capacity, thereby enhancing Sri Lanka’s position as a hub for maritime activities in the region.
2. Colombo Port City project
Another noteworthy agreement between the two countries is the Colombo Port City project. The $1.4 billion project, led by China Harbour Engineering Company, aims to build a new city on 269 hectares of land reclaimed from the sea off Colombo’s shoreline. The project will create new economic zones for manufacturing and service industries, thereby generating employment and boosting economic growth in the region.
3. Mattala International Airport agreement
In 2017, the Sri Lankan government signed an agreement with China for the management and development of Mattala International Airport. The agreement saw the transfer of 70% ownership of the airport to China for a period of 40 years, in exchange for a loan of $290 million. The airport is expected to be transformed into an international air cargo hub, bringing about greater connectivity and facilitating trade between China, Sri Lanka, and other countries in the region.
4. Free Trade Agreement
In 2020, China and Sri Lanka signed a Free Trade Agreement (FTA), marking a significant milestone in their economic relations. The FTA is expected to boost trade between the two countries and increase Sri Lanka’s exports to China. The agreement covers a wide range of products, including agricultural goods, textiles, and electronics.
In conclusion, the China-Sri Lanka agreements are aimed at enhancing economic cooperation and bringing about mutually beneficial outcomes for both countries. These deals signify the growing trade and investment ties between the two nations and are expected to pave the way for greater economic growth and development in the region.