Sri Lanka sees opportunities with China grow

When Chiran Gunasekara enrolled in his first Chinese language class in the sixth grade, becoming a Chinese teacher seemed like the biggest dream he could imagine.

Fascinated by East Asian culture, the native of Colombo, Sri Lanka, devoted himself to learning the language, never imagining it would eventually lead him down a different career path.

Today, the 21-year-old works at Port City Colombo, a multiservice special economic zone jointly developed by the Sri Lankan government and China Harbour Engineering Co under the Belt and Road Initiative.

"My life changed because I learned Chinese," Gunasekara said.

After spending six months in China on an exchange program, he returned home and secured a job at Port City Colombo, where his language skills became an advantage in a workplace bringing together Chinese and Sri Lankan professionals.

"The Chinese people helped us build this port city," he said. "It has created many more jobs. More and more people are moving to Colombo looking for work, and the project has given us more opportunities to find jobs."

Stretching along Colombo's coastline, Port City Colombo has become one of the most recognizable symbols of Sri Lanka's efforts to build itself into a regional financial and business hub.

By May 2026, the special economic zone had completed the sale of more than 10 land plots and attracted over 250 companies. Nearly one-third of the companies generate annual revenue exceeding $100 million.

Commercial facilities are also taking shape. A duty-free shopping complex, a food street and an information technology park have begun operating, while three high-rise buildings are under construction and work on four additional development projects is advancing.

The project has been a centerpiece of China-Sri Lanka cooperation for more than a decade.

In September 2014, President Xi Jinping and then Sri Lankan president Mahinda Rajapaksa jointly attended the groundbreaking ceremony during Xi's state visit to Sri Lanka.

During the third Belt and Road Forum for International Cooperation in October 2023, Xi told then Sri Lankan president Ranil Wickremesinghe that the two nations should make every effort to push forward Colombo Port City and the Hambantota comprehensive development project, making them flagship projects of China-Sri Lanka Belt and Road cooperation.

China is happy to see Sri Lanka become a commercial center of the Indian Ocean, he said.

According to project estimates, once fully operational, the city is expected to create around 200,000 direct and indirect jobs, attract about $1 billion in foreign direct investment annually and contribute approximately $15 billion to Sri Lanka's gross domestic product each year.

Added significance

Gunasekara said the opportunities created by new investment have taken on added significance following Sri Lanka's economic crisis.

"I think that with more Chinese investment, the recovery will happen faster," he said.

Like many Sri Lankans, he said his family experienced the hardships brought by the country's financial turmoil. "Everyone in Sri Lanka went through it," he said.

For Vraie Cally Balthazaar, mayor of Colombo, the city's transformation reflects broader opportunities ahead.

"I think there's great potential for our cities to work together," she said, adding that Colombo hopes to attract investment from China as well as from around the world as the city continues to grow.

Balthazaar also praised China's long-standing support for Sri Lanka. "Whether in good times or difficult times, China has always been there," she said. "That is something we hold very dear, and perhaps one of the reasons why our friendship is so strong."

Long partnership

The economic partnership between China and Sri Lanka stretches back much further than the BRI.

Modern bilateral economic cooperation began with the Rubber-Rice Pact signed in 1952, an agreement widely regarded as laying the foundation for the two countries' modern economic relationship.

The partnership has since expanded from trade into infrastructure, education, tourism, healthcare and cultural exchanges.

According to China's General Administration of Customs, bilateral trade reached $6.16 billion in 2025, an increase of 15 percent from the previous year.

Speaking at a forum in July, Jagath Wickramaratne, speaker of the Parliament of Sri Lanka, said that bilateral relations have continued to deepen on the basis of mutual trust, respect for sovereignty and practical cooperation.

He described China as "a valued development partner" that has supported Sri Lanka in infrastructure, trade, education, tourism, healthcare and cultural exchange.

"As the Belt and Road Initiative advances into a new stage of high-quality development, Sri Lanka looks forward to strengthening cooperation with China in a manner that is sustainable, mutually beneficial and responsive to the development aspirations of both our peoples," he said.

Expanded cooperation

The cooperation has also expanded beyond large-scale infrastructure.

In March 2023, China, the Food and Agriculture Organization of the United Nations and Sri Lanka launched a South-South Cooperation project to strengthen the country's tropical fruit industry.

Over the following two-and-a-half years, a team of 12 Chinese agricultural experts worked with local partners to improve the production and commercialization of bananas, mangoes and pineapples.

The experts introduced technologies including tissue culture propagation, integrated water and fertilizer management, intensive pruning, integrated pest management and fruit bagging, while establishing a banana tissue culture facility and 10 demonstration orchards across Sri Lanka.

"Through hands-on training and day-to-day guidance, we introduced advanced cultivation techniques and management practices to Sri Lankan technicians and fruit growers," said Sun Dequan, a researcher with the Chinese Academy of Tropical Agricultural Sciences.

He said Chinese experts are now embarking on another project, with a total funding of 1 million yuan ($147,660), to help enhance the country's banana production capacity, support the sustainable development of its banana industry and increase farmers' income.

Piyumani Ranasinghe, a research fellow at the Lakshman Kadirgamar Institute of International Relations and Strategic Studies in Colombo, said that Sri Lanka's engagement with China in infrastructure, agriculture, investment and technology demonstrates how international partnerships can contribute to national development objectives when aligned with domestic priorities.

"China's rising technological prowess is a phenomenon Sri Lanka wishes to absorb into its own economy," she said.

"As Sri Lanka continues its economic recovery and transformation, the next phase of cooperation presents opportunities beyond infrastructure, including investment, technology transfer, renewable energy, industrial development, digital transformation and integration into global value chains," she added.