Sri Lanka's cabinet has approved a bilateral immigration control agreement with China alongside several other international accords, while the country faces persistent current account deficits and stock market declines.
Sri Lanka's cabinet approved a bilateral immigration control cooperation agreement with China on Tuesday, designed to streamline travel procedures for legitimate business, investment, and tourism activities while strengthening efforts against transnational crime. Minister Nalinda Jayatissa stated that the pact aims to enhance coordination between Sri Lanka's Department of Immigration and Emigration and China's National Immigration Administration through intelligence sharing, border management improvements, and training initiatives for immigration officers.
When questioned about whether the agreement relates to recent arrests involving Chinese nationals engaged in online scams, Jayatissa rejected any connection, characterizing the pact as a long-term institutional initiative rather than a response to specific criminal incidents. He noted that foreign nationals from various regions, including European and Central Asian countries, are similarly engaged in illegal activities and processed through legal channels. The agreement received clearance from the Attorney General and the Ministry of Foreign Affairs before cabinet approval.
Beyond the China accord, the cabinet also greenlit a mutual legal assistance agreement with South Korea for cross-border criminal investigations—a proposal first raised in 2023—and approved a complementary adjustment agreement with Brazil for a sugarcane development project. Additionally, the cabinet designated 68 entities operating in the Colombo Port City as Secondary Businesses of Strategic Importance across sectors including information technology, logistics, and business process outsourcing.
Meanwhile, Sri Lanka's economic indicators showed mixed signals. The Colombo Stock Exchange declined 0.08 percent on the day, while the country's current account deficit reached 142 million dollars in July—the fourth consecutive monthly deficit. The merchandise trade gap widened significantly, with fuel imports surging 68 percent year-on-year, though worker remittances grew 11.5 percent monthly and tourism earnings rose compared to the previous month.