Sri Lanka – China Economic Relations in Comparative Perspective

December 29, 2016   Reading Time: < 1 minute

Reading Time: < 1 min read

LKI’s Working Paper series, launched this year, features scholarship on subjects related to Sri Lanka’s foreign policy, authored by LKI researchers and also by visiting and non-resident fellows.

This Working Paper is by LKI Research Director, Ravindra Deyshappriya, on “Sri-Lanka China Economic Relations in Comparative Perspective: Ample Room to Grow”. The paper traces the evolution of trade, investment, and tourism relations between China and Sri Lanka, and analyses these relations in a comparative regional context.

One of the major findings of the study is that, although China has been a major FDI source and lender to Sri Lanka in recent years, FDI is still very low compared to Chinese FDI to other Asian countries. Similarly, although China is now the second largest source of tourists to Sri Lanka, Sri Lanka does not rank among even the top 25 outbound destinations of Chinese tourists. This comparative perspective carries significant strategic potential for Sri Lankan policymakers.