Post pandemic transformation of China - Sri Lanka trade: Toward green and digital cooperation

Abstract

China - Sri Lanka trade cooperation has significantly evolved under the Belt and Road Initiative (BRI), reflecting a dynamic balance between strategic interdependence and economic pathways. In the post-pandemic period (2022–2024), this partnership has undergone a gradual transformation toward green and digital collaboration, shaped by global sustainability commitments and rapid technological change. The key objective of this study is to assess how both countries are integrating green and digital economic strategies into bilateral trade cooperation in post pandemic period. This study employed a qualitative approach using secondary data and guided by the PRISMA 2020 model. Data were obtained from institutional and policy sources including the World Bank, UNCTAD, ESCAP, MOFCOM, and the Sri Lankan Ministry of Trade, along with peer-reviewed academic papers and policy reports covering the 2022–2024 period. Thematic analysis were applied to identify evolving trade patterns, digital integration, and green transition mechanisms, while data triangulation was used to validate findings across sources. The results reveal a tangible transformation from infrastructure-led projects to diversified trade sectors centred on renewable-energy investment, digital-service exports, and e-commerce linkages connecting Sri Lankan SMEs to Chinese markets. By 2024, Sri Lanka’s import share from China had risen to 23.4 percent of total imports, whereas exports to China accounted for only 2.1 percent revealing continued trade asymmetry. China’s trade with BRI countries reached RMB 22.1 trillion in 2024, with new agreements focusing on green, digital, and blue-economy cooperation. Despite these advancements, persistent trade imbalances and limited technology transfer remain key challenges. The study concludes that China – Sri Lanka cooperation is progressively evolving toward an innovation-driven and sustainability-oriented model under the BRI framework. This transition demonstrates emerging opportunities for renewable-energy trade, digital-platform integration, and inclusive SME participation.