China has offered $2.2 billion in loans to Sri Lanka for infrastructure projects, as well as agreeing to sign a free trade agreement and enhance military ties, after talks during a 4-day visit by Sri Lankan President Mahinda Rajapaksa and his delegation.
Reuters reported Sri Lankan Foreign Minister G.L. Peiris, as saying,
"defence-related training, logistics and maritime security, and have agreed in principle to establish a free trade agreement”.
In addition China agreed to loan $2.2 billion for infrastructure projects, which includes development of Colombo’s port.
See our feature from 2010 : Who benefits from Chinese loans to Sri Lanka?
Rajapaksa’s media office also stated that Chinese Prime Minister Li said,
"China will explore the possibility of establishing an industrial zone in Hambantota... In addition, we will support Sri Lanka to develop capabilities in satellite communication, space technology and maritime industries".