New Sri Lanka-China ‘Trusted Trader’ programme aims to certify 200 local firms by mid-2026

By Nishel Fernando 

The Sri Lanka China Business Cooperation Council (SLCBCC) has launched a new ‘Trusted Trader’ certification, projecting that 150 to 200 Sri Lankan companies will be certified by mid-2026.

The initiative, developed in partnership with the China Council for the Promotion of International Trade (CCPIT), is designed to bolster the US $ 4.6 billion bilateral trade relationship by tackling a critical ‘trust deficit’ between the trading partners.

The programme provides a mutually recognised standard for creditworthiness and good commercial practices. The certificates issued by the SLCBCC will be accredited by the CCPIT’s Trade Development and Cooperation Centre in Beijing, making Sri Lanka the first country to adopt such a compatible system with China. 

With the first certified transactions expected within the next two weeks, the programme aims to provide immediate benefits to the local importers and exporters.

“Our idea is to identify credit-worthy companies with good commercial practice,” said Trusted Trader initiative Chairperson Ajith Perera.

“What we issue is recognised by them and we recognise theirs. It’s a vice-versa arrangement.”

The certification directly addresses the long-standing issues such as payment risks, which particularly affect the small and medium-sized enterprises (SMEs).

According to SLCBCC President U.H. Palihakkara, the prevailing lack of trust means around 90 percent of payments for the imports from China are made upfront via telegraphic transfers, creating cash flow challenges for Sri Lankan businesses.

The programme aims to create a more equitable trading environment for Sri Lankan firms. A key advantage is that the certified firms will be eligible for credit purchases from Chinese suppliers. Additionally, companies will gain increased visibility through registration on the official CCPIT-China website, exposing them to over 3,000-certified Chinese businesses. This certification also serves as a reliable reference, thereby reducing transaction risks for both the Sri Lankan and Chinese parties involved.

The concept was first tabled by Sri Lanka’s Commerce Department at the seventh China-Sri Lanka joint commission in 2021 and is now being implemented by the SLCBCC. To ensure accessibility for the SMEs, the application fees are set at an affordable Rs.35,000 for non-members and Rs.30,000 for the members.

The long-term vision for the Trusted Trader programme is to bridge the significant trade imbalance—currently, Sri Lankan exports to China are just US $ 252 million—and facilitate the rapid implementation of future free trade agreements.