Sri Lanka and China Strengthen Bilateral Relations

Sri Lanka has unveiled a relief package aimed at supporting small and medium enterprises (SMEs) severely impacted by recent economic challenges, including the COVID-19 pandemic and the 2022 economic collapse. The package, developed with the Central Bank of Sri Lanka and other stakeholders, recognizes the critical role of SMEs in contributing over 50% to the country's GDP and addresses the rising non-performing loans in the banking sector. Concurrently, during President Anura Dissanayake's state visit to China, both nations emphasized their commitment to strengthening bilateral ties, with China reiterating support for Sri Lanka's sovereignty and development choices. A joint statement highlighted plans for enhanced cooperation, including a comprehensive free trade agreement and renewed financial collaborations. China's commitment to assisting Sri Lanka in achieving financial relief and debt sustainability was reaffirmed, as both nations acknowledged the importance of mutual respect and cooperation. As Sri Lanka navigates its economic recovery, these developments signal a concerted effort to stabilize the SME sector and strengthen international partnerships.