September 18, 2014 (LBO) – Sri Lanka and China in talks to finalise a free-trade agreement which would bring substantial economic and trade benefits to the two countries, with both governments expressing hope that the deal will be implemented at an early date. China is the second largest economy in the world has reached a target of nine trillion US dollars of gross domestic product (GDP) in 2013 maintaining an average growth rate of nine percent. China is the biggest market in the world with 1.4 billion population.
China is the 18th largest export market for Sri Lanka with exports of 121 million US dollars in 2013 which is one percent of total exports of Sri Lanka and with three billion US dollars Chinese imports to Sri Lanka equals number one importer India.
The Institute of Policy Studies of Sri Lanka (IPS) takes a closer look, at China’s new economic dynamism which Sri Lanka should note in the negotiation between China and Sri Lanka.
IPS is an autonomous institution that aims to promote policy-oriented economic research and to strengthen the capacity for medium-term policy analysis in Sri Lanka.
Press Release by Anushka Wijesinha – IPS
China is still a developing country. We must give top priority to economic develop