China on 16 September 2012 signed 16 major agreements with Sri Lanka in Colombo on a range of issues, from visa exemption and marine development to economic and technology cooperation. China also promised to expand investment and increase imports from Sri Lanka. China and Sri Lanka agreed that holders of diplomatic and service passports of the other nation will be exempt from visa requirements. China-Sri Lanka bilateral trade volume reached 3.14 billion dollars in 2011.
After the civil war, Sri Lanka needs to rebuild its infrastructure, which offers great opportunities for China, while China also seeks to increase overseas investment.
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