A high-level delegation from China’s Peking University has underscored the depth and diversity of Sri Lanka-China relations following a series of discussions with government officials, business leaders, legal experts, members of the armed forces and think tanks in Colombo, highlighting economic cooperation, cultural affinity and knowledge exchange as key pillars of the bilateral partnership.

The delegation, led by Prof. Wang Weijia, Director of the Research Centre for Global Governance and International Communication and Dean of the Institute of International Communication at Peking University, held extensive consultations on opportunities for strengthening cooperation between the two countries.

Meeting the Presidential Special Envoy on Foreign Investments and Western Province Governor Hanif Yusoof, the delegation discussed Sri Lanka’s trade and investment outlook, with logistics, energy and tourism identified as priority sectors for foreign investment. Yusoof noted that Chinese enterprises have made substantial contributions to Sri Lanka’s infrastructure, telecommunications and energy sectors and stressed the importance of leveraging the island’s strategic location to build regional supply chains and expand export-oriented manufacturing.

Secretary to the Treasury and Ministry of Finance, Planning and Economic Development Dr. Harshana Suriyapperuma described Sri Lanka-China relations as rooted in centuries-old historical, cultural and emotional ties that go far beyond commercial transactions. He cited Port City Colombo as a symbol of the enduring partnership and a platform capable of enhancing Sri Lanka’s long-term economic growth and global connectivity.

Acting Board of Investment Chairman Dr. Sulakshana Jayawardena highlighted the broader benefits of Chinese-backed investments, noting that projects such as Port City Colombo not only attract foreign capital but also create employment opportunities and facilitate technology transfer. He identified high-tech manufacturing, pharmaceuticals and textiles as promising areas for deeper cooperation.

Dr. Jayawardena also emphasized the importance of strengthening collaboration in research and education, expressing hope that institutions such as Peking University could serve as bridges for academic exchanges and help Sri Lanka benefit from China’s experience in special economic zone management, industrial development and workforce training.

Throughout the visit, Prof. Wang presented Peking University’s strengths in area studies and international communication and reaffirmed the university’s commitment to supporting research aligned with Sri Lanka’s development priorities. He also stressed the importance of enhancing scholarly and cultural exchanges to deepen mutual understanding and further strengthen the longstanding friendship between the two nations.

The discussions highlighted that Sri Lanka-China relations encompass not only trade and investment, but also social, cultural and educational cooperation, reflecting a multifaceted partnership aimed at promoting sustainable development and stronger people-to-people ties.

India has signalled its readiness to fast-track an upgrade of the 26-year-old India-Sri Lanka Free Trade Agreement (ISFTA) in a move that could significantly expand Sri Lanka’s export, investment, and services opportunities at a time when the island is seeking new growth drivers amid its economic recovery.

The Daily FT learns that the neighbouring economic powerhouse has conveyed its openness to accelerating discussions on an enhanced agreement and is awaiting the outcome of a newly appointed Sri Lankan task force reviewing the matter.

Sources familiar with the discussions said an upgraded pact would be more beneficial to Sri Lanka than India, pointing to the significant growth in Sri Lankan exports to India, from around $ 50 million in 2000 to over $ 1 billion in 2025 following the implementation of the ISFTA.

The ISFTA, signed in 1998 and operational since March 2000, was Sri Lanka’s first bilateral FTA and provides duty-free access for over 4,000 product lines to the Indian market. However, it is limited to trade in goods, with both countries having long explored a deeper economic partnership including services, investments, and technology cooperation.

According to sources, India’s key priorities in any upgraded agreement are the removal of non-tariff barriers and the strengthening of rules of origin.

India is also keen to include trade in services as a core component of a revised framework, although it is not seeking the opening of any specific sectors in Sri Lanka.

Discussions have included revisiting existing value-addition requirements and adopting more product-specific rules of origin similar to those found in India’s agreements with major trading partners like the US and Canada.

It was also noted that an upgraded agreement could boost Sri Lanka’s ambition of becoming an export and logistics hub linking India with the Middle East and Africa. The proposal also aligns with broader regional connectivity initiatives, including discussions on a Sri Lanka-India-Japan economic corridor.

A study on the proposed export-oriented industrial corridor has estimated that such an initiative could lift Sri Lanka’s economic growth by as much as 9.3% by 2030.

During the past six years, India has signed nine FTAs with large, developed, and consuming economies. Of these, three were singled this year including the India-EU FTA, India-US Interim Trade Framework, and India-New Zealand FTA.

The latest push comes against the backdrop of decades of efforts to deepen bilateral economic integration with Sri Lanka. A proposed Comprehensive Economic Partnership Agreement (CEPA), finalised in 2008, sought to expand the ISFTA into services, investment, and technology transfer, but failed to materialise due to domestic opposition and concerns among Sri Lankan industry groups. Subsequent efforts to negotiate an Economic and Technological Cooperation Agreement (ETCA) similarly stalled amid political resistance.

Analysts contend that while Asian economies are increasingly pursuing deeper regional integration and supply chain partnerships, Sri Lanka has lagged in advancing major trade agreements.

They argue that a carefully negotiated upgrade of the ISFTA could provide the country with greater market access, attract export-oriented investments, and position it more effectively within emerging regional value chains, provided concerns over competitiveness and implementation are adequately addressed.

The Commander of US Pacific Air Forces (PACAF) is in Sri Lanka and will meet with senior Sri Lankan government and defense leaders, including leadership from the Ministry of Defense and the Sri Lanka Air Force, the US embassy in Colombo said.

“Discussions will focus on expanded cooperation across air and maritime domain awareness, cybersecurity, disaster response, and regional security.”

General Kevin Schneider oversees all US Air Force personnel and assets.

The three-day visit “reflects the growing strength of the U.S.-Sri Lanka defense partnership” the embassy said.

His visit is the “latest milestone in an expanding bilateral relationship built on joint exercises, military exchanges, and consistent senior-level dialogue. The United States recognizes Sri Lanka as an essential partner in the collective effort to preserve peace, security, and prosperity across the region.”

Sri Lanka’s Health Minister has moved to dispel growing speculation over the condition of former State Intelligence Chief Suresh Salley, confirming that he is not in a critical state and is receiving proper medical care under detention orders at the National Hospital.

Addressing a series of questions raised by journalists today, Minister of Health and Mass Media Dr. Nalinda Jayatissa rejected claims that Salley’s condition had deteriorated, following reports circulated by a political group.

Responding to concerns that the government and President could be held responsible if any adverse outcome occurred, the Minister firmly denied such assertions.

“There is absolutely no such critical condition at present. He is receiving treatment at the National Hospital in accordance with the law under detention orders. There is no such issue. All specialist doctors are examining him. He is being provided with the necessary nutrition. In fact, at the National Hospital, we are ensuring that all required nutrition and medication are given properly. There are no issues whatsoever. No serious or critical condition has been reported by doctors. I believe further steps can be taken based on the medical reports,” he said.

The Minister also dismissed claims made by family members that Suresh Salley was experiencing swelling in his limbs, stating that no such medical condition had been reported to him.

“I have not received any such report,” he said in response to a direct query.

On questions regarding whether the former intelligence chief is receiving adequate treatment, Dr. Jayatissa reiterated that all necessary medical attention is being provided, both prior to and following his admission to hospital.

“Everything is being provided. Even before he was admitted to the National Hospital, while he was under detention, the Criminal Investigation Department responded immediately to all of his health-related complaints. Whether it was dental issues, skin conditions, or nutrition, CID officers worked together with health authorities to address all of them. He is fully aware of that. After hospitalisation, all necessary examinations are being carried out and the required treatment is being provided,” the Minister explained.

When pressed on whether this contradicts the claims made by Salley’s family, the Minister maintained that medical decisions and assessments are guided strictly by professional evaluations.

“What matters most is the recommendation of the specialist doctors at the National Hospital. We act based on those medical assessments,” he added.