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China–Sri Lanka Economic Relations

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  • Saman Kelegama

Abstract

This 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.

Suggested Citation

  • Saman Kelegama, 2014. "China–Sri Lanka Economic Relations," China Report, , vol. 50(2), pages 131-149, May.
    • Handle: RePEc:sae:chnrpt:v:50:y:2014:i:2:p:131-149
    DOI: 10.1177/0009445514523646
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