Sri Lanka's prime minister Mahinda Rajapaksa (R) and director of the Central Foreign Affairs Commission Office Yang Jiechi pose for a picture before a meeting in Colombo on 9 October 2020
Sri Lanka's prime minister Mahinda Rajapaksa (R) and director of the Central Foreign Affairs Commission Office Yang Jiechi pose for a picture before a meeting in Colombo on 9 October 2020AFP

China and Sri Lanka plan to restart discussions on a free trade agreement, Sri Lankan president Gotabaya Rajapaksa said on Friday, following a high-level meeting between the two countries.

Seen as close to Beijing, Rajapaksa has appointed several members of his family to top cabinet positions since his party won a commanding majority in August’s parliamentary elections - including his brother Mahinda, who previously also served as president.

Negotiations on a free trade agreement were last held in 2017.

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China has been making increasing inroads into South Asia with its Belt and Road Initiative, aimed at financing critical infrastructure in dozens of countries across the world.

I want to prove that it is not the case and that this large-scale project will help improve the living standards of the people
Mahinda Rajapaksa

In 2017, Sri Lanka signed over control of a Chinese-financed port and land around it to Beijing after incurring heavy losses, to the alarm of the United States and regional power India.

On Friday, Rajapaksa rejected accusations that China wanted to trap Sri Lanka into mounting debt with the port deal.

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“Many geo-political analysis interprets this project as a ‘debt trap’ set up by China to gain control over Sri Lankan affairs,” Rajapaksa told the Chines delegation, led by Yang Jiechi, one of China’s top diplomats.

“I want to prove that it is not the case and that this large-scale project will help improve the living standards of the people,” he added.

The countries also agreed to deepen ties in the agriculture, education, tourism, water supply and healthcare sectors, according to a summary of the meeting released by Rajapaksa’s office.