A significant milestone was achieved on 30 August 2024, when a high-profile delegation from the Canton Fair Operations Department of China visited the Sri Lanka Export Development Board (EDB). This meeting was aimed at enhancing trade relations between the two nations, with a particular focus on scaling up Sri Lankan participation in international trade events like the Canton Fair 2024. This visit underscores the growing importance of trade ties between China and Sri Lanka and signals an exciting phase of increased cooperation and economic collaboration.
Growing Trade Between China and Sri Lanka
In recent years, China has emerged as one of Sri Lanka’s most vital trading partners. In 2023, China was the 10th largest export destination for Sri Lankan goods. The total export value from Sri Lanka to China reached an impressive $258 million. However, Sri Lanka’s imports from China far exceeded this, amounting to $3.09 billion in the same year. This vast trade imbalance reflects the potential for Sri Lanka to enhance its exports to China and capitalize on the opportunities available in one of the world’s largest markets.
Sri Lanka has been focusing on expanding its footprint in China through various trade promotional activities, with the goal of strengthening the country’s exports. As part of this effort, the EDB has actively organized and facilitated Sri Lankan businesses to participate in major trade fairs and expos in China, such as the China International Import Expo (CIIE) in Shanghai, the China International Small and Medium Enterprises Fair (CISMEF) in Guangzhou, the Kunming Import and Export Fair, and the Canton Fair in Guangzhou.
Canton Fair: A Key Platform for Sri Lankan Exporters
The Canton Fair, one of the largest and most prestigious trade fairs in the world, offers a massive platform for Sri Lankan exporters to showcase their products to global buyers. With thousands of international businesses attending, it presents a unique opportunity for Sri Lankan companies to enter new markets, network with potential partners, and increase their exports.
The Canton Fair is held twice a year in spring and autumn in Guangzhou, China. The upcoming 136th Canton Fair will be held from 15 October to 4 November 2024, in three phases. This event is highly anticipated as it brings together exporters and buyers from across the world, making it a prime opportunity for Sri Lankan businesses to engage with international markets.
During the Canton Fair delegation’s visit to Sri Lanka, the EDB was formally invited to organize the participation of Sri Lankan exporters at the Canton Fair 2024. The delegation, led by Deputy Director Liao Zhihao and accompanied by Deputy Director Zhang Chao and staff member Yang Yuyan, engaged in discussions with EDB officials to explore ways to enhance Sri Lankan representation at the event.
EDB’s Efforts to Promote Trade with China
The EDB has been proactive in promoting Sri Lankan exports in China through various initiatives. Recognizing the enormous potential of the Chinese market, the EDB has organized several promotional activities to attract Chinese importers and investors to Sri Lanka. These efforts are aimed at increasing trade, investments, and overall economic cooperation between the two countries.
One such initiative was the participation of Sri Lankan companies in the Canton Fair, even during the challenging times of the COVID-19 pandemic. Despite global disruptions, the EDB successfully facilitated Sri Lankan companies to participate in the Canton Fair online. In the April 2022 edition, 15 Sri Lankan companies participated virtually, while the October 2022 edition saw 40 companies actively engaging and publishing their profiles on the Canton Fair website. These efforts helped maintain Sri Lanka’s presence in the Chinese market and highlighted the adaptability of Sri Lankan businesses in the face of global challenges.
Looking ahead, the EDB has assured that it will give wide publicity to the Canton Fair 2024 among the Sri Lankan export community. This will encourage more individual companies to participate and take advantage of the opportunities available. Additionally, discussions are underway regarding the possibility of organizing a dedicated Sri Lanka Pavilion at the 137th Canton Fair in 2025, further cementing Sri Lanka’s presence at this important trade event.
Strengthening Bilateral Trade Relations
The meeting between the Canton Fair delegation and the EDB was not just about promoting participation in the fair. It was also an opportunity to discuss the broader scope of trade relations between Sri Lanka and China. Both parties recognized the potential for further growth and collaboration, particularly in sectors such as manufacturing, agriculture, and technology.
Sri Lanka has a diverse range of products that could appeal to the Chinese market, including tea, rubber, coconut-based products, spices, textiles, and apparel. By leveraging platforms like the Canton Fair, Sri Lankan exporters can gain greater visibility and access to a vast network of buyers, investors, and distributors.
Furthermore, the visit highlighted China’s commitment to supporting Sri Lanka’s economic growth by facilitating greater market access for Sri Lankan goods. This aligns with China’s broader Belt and Road Initiative (BRI), which seeks to enhance connectivity and trade across Asia and beyond. As Sri Lanka continues to rebuild its economy, strengthening its trade ties with China will be crucial for sustained growth and development.
Conclusion
The visit of the Canton Fair delegation to the Sri Lanka Export Development Board marks a significant step in scaling up trade relations between China and Sri Lanka. With China being one of Sri Lanka’s key trading partners, the Canton Fair presents an excellent opportunity for Sri Lankan exporters to expand their market presence, boost exports, and strengthen bilateral ties.
The EDB’s efforts to promote Sri Lankan participation in major trade events like the Canton Fair demonstrate the country’s commitment to enhancing its global trade partnerships. As more Sri Lankan companies participate in these events, the future of Sri Lanka-China trade relations looks promising, with increased opportunities for both nations to benefit from closer economic collaboration.
With the upcoming Canton Fair 2024 and the possibility of a dedicated Sri Lanka Pavilion in 2025, Sri Lankan businesses are well-positioned to tap into the lucrative Chinese market and contribute to the growth of the nation’s export sector.
