In recent years Sri Lanka's Treasury has helped expand the trade gap with China by borrowing heavily from its Exim Bank and others (exporting Sri Lanka government debt to China) for infrastructure projects which are tied to Chinese material imports and labour.
But ordinary Sri Lankan citizens also import goods from China at a lower cost than from other countries increasing their disposable incomes to purchase more consumer goods, save or invest, thereby generally bettering their lives.
Despite rising import tariffs, which promote the import of lower quality goods, analysts say Chinese sanitary wear, tiles and other building materials help homeless Sri Lankans including those employed in the Middle East to build houses at a lower cost.
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Analysts say Indian imports are also playing a similar role in improving living standards of the people and serving as a first line of defence against powerful domestic production lobbies that are successfully rigging the customs regime in their favour to earn