The second round of China-Sri Lanka FTA negotiations was held in Beijing on November 26-28, 2014. The two sides exchanged views on issues concerning trade in goods, trade in service, investment, economic and technological cooperation, rule of origin, customs procedures and trade facilitation, technological barriers, Sanitary and Phyto Sanitary (Measures), trade remedy, and dispute settlement, and positive progress was made in the negotiations.

The launch of the China-Sri Lanka FTA negotiations was jointly announced Chinese President Xi Jinping and Sri Lankan President Mahinda Rajapaksa during Xi visit to Sri Lanka in September. China-Sri Lanka bilateral trade has been expanding in recent years. The bilateral trade amounted to US$3.62 billion in 2013, up 14.3% year on year. In January-September, 2014, China-Sri Lanka bilateral trade totaled US$2.737 billion, up 5.93% year on year.