A high‑level meeting was recently convened between the Sri Lanka Export Development Board (EDB) and European Commission consultants Paul Baker and Talal Rafi to discuss the potential impact of the EU–India Free Trade Agreement (FTA) on Sri Lanka’s export sectors.

The discussion brought together key stakeholders, including EDB Chairman Mangala Wijesinghe and Joint Apparel Association Forum (JAAF) Secretary General Yohan Lawrence, to exchange insights on how the landmark trade deal could reshape Sri Lanka’s export competitiveness in the European market, as well as the challenges that Sri Lanka’s apparel industry could face once the FTA becomes operational.

Negotiations on the EU–India FTA were concluded on 27 January 2026, and the agreement is expected to enter into force following the completion of the required legal review, signature, and ratification procedures.

The FTA is expected to significantly improve the competitiveness of Indian exports in the European market. Key labour-intensive export sectors, including apparel, marine products, leather and footwear, chemicals, plastics and rubber, sports goods, toys, and gems and jewellery, will benefit from substantial tariff liberalisation, with many products gaining duty-free access from the date the agreement enters into force.

Addressing the meeting, EDB Chairman Mangala Wijesinghe emphasised the importance of the European Union to Sri Lanka’s export economy, noting that the EU remains Sri Lanka’s second-largest export destination after the United States and accounts for approximately 24% of the country’s merchandise exports. He also provided a detailed assessment of the potential implications of the EU–India FTA for Sri Lanka’s export sector, highlighting both the emerging challenges and opportunities for local exporters.

Sri Lanka’s exports to EU markets recorded strong growth in 2025, with major destinations including Germany, Italy, the Netherlands, France and Belgium registering increases over the previous year.

Wijesinghe also stressed the importance of safeguarding Sri Lanka’s preferential access to the EU market through the GSP+ scheme, particularly as Indian products become increasingly price-competitive following implementation of the FTA. He noted the importance of Sri Lanka continuing to meet the requirements of the EU’s revised GSP framework and securing preferential access under the new regime.

“We intend to position Sri Lanka as a reliable, sustainable and high-quality supplier to the global market, while encouraging local enterprises to move towards higher-value, differentiated products and strengthen compliance with EU standards,” Wijesinghe said, outlining some of the strategies the EDB intends to pursue to mitigate the potential adverse effects of the FTA.

Joining the discussion, European Commission consultant and international trade economist Paul Baker observed that economic projections and long-term modelling indicate that the EU–India FTA could substantially increase India’s exports to the European bloc while also strengthening foreign direct investment flows into India.

He noted that while Indian products are expected to become more price-competitive in the EU market following tariff liberalisation, the European Union’s increasing emphasis on sustainability, environmental performance, traceability and regulatory compliance would continue to create opportunities for exporters capable of meeting these requirements.

Baker therefore encouraged Sri Lankan exporters to reassess their product and market strategies, improve value addition and strengthen compliance with evolving EU sustainability and regulatory standards in order to remain competitive.

Yohan Lawrence, representatives of the apparel industry, meanwhile, raised concerns over the potential impact of the FTA on Sri Lanka’s apparel exports to the EU. Particular attention was drawn to the rules of origin and regional cumulation arrangements applicable to fabrics and other inputs sourced from India and subsequently used in garments manufactured in Sri Lanka for export to the EU under GSP+.

Industry representatives cautioned that any restriction on Sri Lankan apparel manufacturers’ ability to benefit from cumulation arrangements involving Indian-origin inputs could further weaken the competitiveness of the local garment sector at a time when Indian apparel exports are gaining improved tariff access to the European market.

The EDB emphasised that the Government of Sri Lanka would take the necessary steps to engage with the European Union on appropriate cumulation arrangements with India, with a view to safeguarding Sri Lanka’s export competitiveness and supporting greater integration of regional supply chains.

At the conclusion of the meeting, the European Commission consultants thanked the EDB and representatives of the apparel industry for their observations and industry insights. They indicated that the issues raised during the discussion would be taken into consideration in preparing the final study to be submitted to the European Commission. (Newswire)

The post Sri Lanka EDB, EU consultants discuss impact of EU–India FTA appeared first on Newswire.

Cabinet approval has been granted to commence relevant negotiations for a Free Trade Agreement (FTA) between Sri Lanka and Malaysia.

According to the government, it has been recognized that the attraction of export-oriented foreign direct investments, diversification of exports and expansion of market access for goods and services is important to regain the economic stability of Sri Lanka.

Therefore, it is necessary for Sri Lanka to develop economic integration with countries that have strong and strategic economies, such as Malaysia. 

Sri Lanka’s 34th export destination, Malaysia, is a key member of ASEAN and the Regional Comprehensive Economic Partnership. In the year 2023, the total value of exports to Malaysia was US$ 58.3 Million. 

Considering the importance of reaching a free trade agreement between Sri Lanka and Malaysia, the Cabinet has approved the proposal presented by the President to begin relevant negotiations. (Newswire)

The post Cabinet approval for SL- Malaysia FTA appeared first on Newswire.

The India-EFTA signed Trade and Economic Partnership Agreement (TEPA) on 10th March 2024 marks a significant milestone in fostering trade relations between India and EFTA countries. This agreement signifies progression towards the signing of a Free Trade Agreement (FTA) with the European Union. EFTA is an important group of developed countries in Europe consisting of Liechtenstein, Iceland, Norway, and Switzerland. They formed this union in 1960 for the intensification of trade.

Negotiations commenced for the Trade and Economic Partnership Agreement (TEPA) between India and the EFTA countries in 2008. It took an extensive 21 rounds of negotiations, spanning nearly 16 years, before the final agreement was eventually signed by all parties involved.

This agreement holds significance as it represents the first-ever free trade agreement between India and European countries. However, its enforcement is contingent upon the ratification process, which requires all five countries – India, Liechtenstein, Iceland, Norway, and Switzerland – to ratify the agreement. Only after the instruments of ratification have been deposited with the government of Norway will the agreement come into force on the “first day of the third month.”

Currently, India’s merchandise trade with EFTA countries stands at USD 18.7 billion, with exports worth USD 1.9 billion and imports atUSD 16.7 billion, resulting in a trade deficit of USD 14.8 billion.

A country-wise trade direction reveals that out of four trading partners, Switzerland emerges as the dominant trade partner, accounting for 91% of bilateral merchandise trade.

Currently, India’s merchandise exports to Switzerland stood at USD 1.3 billion, while imports at USD 15.7 billion. India’s exports to Norway were approximately USD 569 million, with imports were around USD 938 million. India’s exports to Iceland stood at USD 10.4 million and imports at USD 5 million. India exports to Liechtenstein’s were USD 0.3 million and imports stood at USD 2 million, respectively, in the overall trade dynamics.

The top five commodities of India’s exports to Switzerland include organic chemicals, natural or cultured pearls, nuclear reactors, aircraft, spacecraft, and parts thereof, and inorganic chemicals while top five commodities of India’s imports from Switzerland are natural or cultured pearls, mineral fuels, nuclear reactors, pharmaceutical products and optical and photography.

The major five commodities of exports to Norway consists of miscellaneous goods, ships, boats and floating structures, organic chemicals, products of the milling industry and optical, photography. India’s import basket from Norway, include mineral fuels, nickel and articles thereof, fertilisers, iron and steel, aluminum and articles thereof.

The basket of major export commodities to Iceland comprise of wadding, felt and nonwovens, iron and steel, organic chemicals, nuclear reactor and rubber and articles thereof. While import basket consist of tanning or dyeing extracts, pulp of wood, animal or vegetable fats and oils, optical, photographic cinematographic, raw hides and skins.

Electrical machinery and equipment, nuclear reactors, organic chemicals, pharmaceutical products and other base metals are major commodities of export to Liechtenstein. While top five commodities of India’s imports from Liechtenstein are optical, photographic cinematographic, Electrical machinery and equipment, natural or cultured pearls, nuclear reactors and articles of stone.

The India-EFTATEPA covers two-way trade between goods, services and investments. The agreement comprises of 14 chapters with main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phyto-sanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development and other legal and horizontal provisions

EFTA is providing access to 92.2% of its tariff lines, encompassing 99.6% of India’s exports. The agreement is expected to lower tariffs on products like machinery, chocolates, and other industrial items and services. The market access offer from EFTA includes all non-agricultural products and tariff concessions on Processed Agricultural Products (PAP). India has presented 105 sub-sectors to EFTA and has obtained commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.

It is a comprehensive agreement covering not only merchandise trade but also services and investment. On the services front, this agreement will accelerate services exports of key sectors such as IT services, business services, personal and other services. Services offers from EFTA include better access through digital delivery of Services, commercial presence and improved commitments and certainty for entry and temporary stay of key personnel.

Exporters will get access to a significant expanding market thereby diversifying supply chains. By promoting domestic production in industries like manufacturing, machinery, pharmaceuticals, chemicals, food processing, transport and logistics, banking and financial services, insurance, and infrastructure and connectivity, TEPA would boost “Made in India” and Atmanirbhar Bharat.

The EFTA states have committed to enhancing their FDI in India by $50 billion over a span of 10 years. Furthermore, they have pledged an additional $50 billion in the subsequent five years. This substantial investment will contribute to the development of infrastructure, elevate the quality of products and services, foster a competitive business environment, and provide financial resources for economic growth.

Notably, this agreement marks a significant milestone as it is the first legal commitment to promote investment with specific targets and the generation of employment. Over the next 15 years, TEPA would expedite the creation of a significant number of direct jobs, together with improved facilities for vocational and technical training, for India’s youthful, aspiring workforce. TEPA also makes access to cutting edge technologies in precision engineering, health sciences, renewable energy, innovation, and research and development easier.

In conclusion, the India-EFTATEPA marks a significant milestone in enhancing trade relations between India and the EFTA nations. With its comprehensive framework covering goods, services, and investments, TEPA sets the stage for deeper economic cooperation and mutual benefits.

By lowering tariffs, promoting investment, and facilitating job creation, TEPA not only fosters economic growth but also underscores India’s commitment to embracing free trade amidst a global landscape of protectionism. As TEPA unfolds, it holds the promise of unlocking new avenues for trade expansion, driving innovation, and fostering prosperity for both India and EFTA countries. (ANI/ Agencies)

The post India-EFTA Trade and Economic Partnership Agreement to unlock trade potential appeared first on Newswire.

A seminar on “Exploring Opportunities and Implications of the Sri Lanka-Thailand Free Trade Agreement” was held recently for Sri Lankan exporters.

The event was organized at the Auditorium of the Postgraduate Institute of Management (PIM) by the Sri Lanka Export Development Board (EDB) in collaboration with the Ministry of Industries and the Department of Commerce.

According to the EDB, the seminar aimed to raise awareness among the Sri Lankan business community and provide a platform for exploring new business opportunities available in the “Trade in Goods Chapter” under the Sri Lanka-Thailand Free Trade Agreement (SLTFTA).  

The seminar featured an eminent panel comprising Mr. K.J Weerasinghe, Chief Negotiator, Office for International Trade, Presidential Secretariat, Mr. K.A Vimalenthirajah, Director General, Department of Trade and Investment Policies, Ministry of Finance, Mr. Sanjeewa Pattiwila, Director of Commerce, Department of Commerce, who shared valuable insights on SLTFTA.

The session witnessed the participation of over 150 representatives from the exporter community, public sector and academia.  Through presentations and spirited discussions under  Q & A session, participants gained a deeper understanding of the strategic framework requirements which are shaping the bilateral trade relationship between Sri Lanka and Thailand in terms of exploration of potential, visualizing a landscape suitable with opportunities for growth, innovation, and prosperity. 

The event was inaugurated jointly by, Mr. M. M. Nayeemudeen, Secretary, Ministry of Investment Promotion, Mrs. J. M. Thilaka Jayasundara, Secretary, Ministry of Industries, Mr. A.M.P.M.B. Atapattu, Secretary, Ministry of Trade, Commerce and Food Security. During the welcome remarks, Dr. Kingsley Bernard, Chairman/CEO of the Sri Lanka Export Development Board, expressed enthusiasm for continuing this dialogue and planning more trade promotional events for the Thailand market in the future, working in collaboration with other Government institutions to get maximum benefit to Sri Lankan economy. (NewsWire)

The post Exploring opportunities of the SL-Thailand Free Trade Agreement appeared first on Newswire.

Minister of Foreign Affairs Ali Sabry says the government plans to establish Free Trade Agreements (FTA) with India, Indonesia, Malaysia, Vietnam, and China by the end of 2024. 

He expressed optimism that these agreements will open up new markets for Sri Lankan businesses, contributing directly to the nation’s economic growth.

Minister Sabry highlighted the recent FTA with Thailand as a historic step towards achieving President Wickremesinghe’s vision of a stable economy. 

He emphasized that this agreement has already provided Sri Lanka access to a USD 2.2 billion market, representing a significant advancement.

Speaking at a press briefing at the President Media Centre yesterday (Feb 06), the Foreign Minister emphasized the importance of strengthening and carrying forward President Ranil Wickremesinghe’s program to establish FTAs with other countries. 

Minister Sabry said he believes this is crucial to ensure Sri Lanka’s economic stability and prevent future downturns.

Signifying the government’s commitment to diversifying Sri Lanka’s trade partnerships and strengthening its economic resilience through strategic FTAs, he said by expanding access to new markets and promoting trade, these agreements aim to create a more robust and sustainable economic foundation for the country.

Sri Lanka significantly lags behind regional competitors like Vietnam and Bangladesh. This issue was highlighted by Minister Sabry, who pointed out the vast difference in export earnings. While Vietnam boasts exports of $370 billion and Bangladesh at $60 billion, Sri Lanka struggles with a mere $12-14 billion.

Minister Sabry further emphasized this disparity by comparing historical and present data. In the 1990s, exports contributed a significant 30% to Sri Lanka’s GDP, compared to a meagre 15% today. This decline reflects a missed opportunity to capitalize on the global market, unlike neighbouring countries that actively pursued Free Trade Agreements (FTAs).

“The main reason behind Sri Lanka’s export struggles is its limited market access. While focusing primarily on the domestic market, countries like Vietnam and Bangladesh actively expanded into larger international markets through FTAs. This strategic move fuelled their export-driven growth, leaving Sri Lanka behind.

“Recognizing this challenge, President Ranil Wickremesinghe embarked on a long-term program to establish FTAs with Asian countries. By unlocking new markets and empowering the export economy, this initiative aims to revitalize Sri Lanka’s economic growth and build a more resilient future”, the minister explained.

He further said that Sri Lanka’s economy is set for a significant boost thanks to a recently signed free trade agreement with Thailand and ongoing negotiations with other major economies. “This agreement, along with technical assistance from Thailand, is expected to attract substantial investments in key sectors like fisheries, tourism, agriculture, and renewable energy.

“By the end of 2024, Sri Lanka aims to finalize free trade agreements with India, China, Singapore, Indonesia, Malaysia, and Vietnam. These agreements have the potential to significantly expand market access for Sri Lankan businesses and attract even more foreign investment. These developments are seen as crucial steps towards stabilizing Sri Lanka’s economy and laying the foundation for future prosperity,” he said.

The minister emphasized the potential for further economic growth through increased trade with the wider world. (NewsWire)

The post Sri Lanka plans FTAs with five countries this year appeared first on Newswire.

President Ranil Wickremesinghe has emphasized the importance of collective progress as one Sri Lankan nation, with a focus on the future rather than the present.

The President said addressing the political landscape, there is a call for regulations governing political parties, with a committee studying global political processes and that this plays a crucial role in shaping Sri Lanka’s political framework.

“To engage globally, collaboration with other nations is essential. Free trade agreements, such as the one with Singapore already signed, are crucial. Ongoing negotiations with India and China are underway, and agreements with Thailand are expected to be finalized in April, marking a significant milestone for the country. Future discussions with Myanmar are scheduled, maintaining diplomatic ties despite challenges. It is crucial to foster relations with Laos and Vietnam, opening our economy to the world, and drawing inspiration from their successful examples,” he said. 

The President pointed out that even amid conventional perspectives, the call is for unity to advance with a shared economic program, much like the remarkable economic progress seen in Cambodia over a short period.

He also highlighted the need for a program similar to the initiatives undertaken by the late D.B. Jayathilaka, which played a crucial role in establishing a strong foundation in Sri Lanka across social, cultural, religious and educational aspects through citizen participation.

President Ranil Wickremesinghe made the remarks while addressing the 125th-anniversary ceremony of the Colombo Young Men’s Buddhist Association (YMBA) held at the Bandaranaike International Conference Hall in Colombo on Sunday (Jan 07). 

The Colombo YMBA, founded under the chairmanship of Sir Anagarika Dharmapala on January 8, 1898, with D.B. Jayatilaka as its founding chairman, stands as the oldest and largest Buddhist organization in the country, contributing significantly to Sri Lanka’s broader mission. The theme of this year’s anniversary event was ‘Discourse for One Sri Lanka.’

During the commemorative ceremony, the President received the launch of a special issue marking the 125th anniversary, and he awarded scholarships to ten university students.

President Ranil Wickremesinghe further speaking at the event acknowledged the historical significance of the Colombo YMBA, stating that it played a pivotal role in shaping the history of Sri Lanka.

“The Colombo Youth Buddhist Association has reached a significant milestone of 125 years since its inception. Undoubtedly, this association holds a pivotal place in Sri Lanka’s history, as it emerged during a period when Christian youth societies were being established in Western countries. In contrast, we, during that time, were actively involved in the Buddhist renaissance. Visionary leaders such as Ven. Sri Sumangala Thera of Hikkaduwa and Colonel Henry Steel Olcott played key roles in spearheading the Buddhist renaissance in our nation. It was against this backdrop that we initiated the world’s first Young Men’s Buddhist Association (YMBA).

The mission of this association diverges from that of Western countries, focusing on advancing the country through Buddhist education. Spearheaded by Mr. D. B. Jayathilaka, this association has played a pivotal role in supporting the Kelaniya Rajamaha Viharaya. We recognize the Young Buddhist Association as a significant force in our freedom movement, and in celebration of its 125th anniversary, I intend to extend a gesture. The government-owned land in Colombo Fort is granted to the association for an additional 99 years, with plans to develop it into a tourist area,” he said.

Stating that the theme for the 125th anniversary, ‘One Sri Lanka Discourse,’ aligns with the country’s current needs, the President said the goal is to address all war-related issues by 2025, providing political solutions for the displaced and missing persons.

“Furthermore, there are plans to enhance the religious centre in Nagadeepa and establish a distinctive Hindu temple in Jaffna, emphasizing the importance of collective progress. Engaging with the youth is crucial; their input, plans and ideas are essential for nation-building.

Looking beyond the present, we aim to recreate the kind of arrangement initiated by Jayathilaka. A comprehensive national plan, uniting everyone to move forward collectively, is imperative for the country’s future.

Sri Lanka has a rich history as an agriculture-centric nation. The emphasis now is on ensuring the safe export of our food crops through sustainable agricultural practices, requiring concerted efforts,” he said.

The President further said simultaneously, that the Anti-Corruption Commission has been established, with a dedicated committee appointed by the Legislative Assembly. 

“Going beyond local financial regulations, we have submitted a comprehensive report on financial control in alignment with the International Monetary Fund agreement. This report encompasses aspects such as tendering processes and expenditure guidelines. A parliamentary commission is anticipated to implement these recommendations, emphasizing the need for diligent work by government financial officers,” he added. (NewsWire)

The post President speaks about FTA with six countries appeared first on Newswire.

Cabinet approval has been granted to proceed with the proposed Sri Lanka-Thailand Free Trade Agreement (FTA).

According to the government, the ninth round of negotiations on the proposed FTA was held in Colombo from 18-21 December 2023. 

The relevant discussions have concluded, while legal and institutional issues have been referred to working groups for legal scrutiny. 

In the 9th round of negotiations, the two sides agreed to include provisions for the simultaneous elimination of 50% of the cumulative duties applicable to the Harmonized System classification codes classified in the Sensitive List of the Tariff Liberalization Program at the beginning of the 16th year from the date of entry into force of the Agreement. 

Accordingly, both sides agreed to reduce the duration of the Tariff Liberalization Program from 18 years to 16 years in the 9th round of negotiations. 

As such, the proposal presented by the President to proceed per the agreement was approved by the Cabinet of Ministers. (NewsWire)

The post SL-Thailand FTA : Cabinet update appeared first on Newswire.

India and the five-member South African Customs Union (SACU) nations are exploring a free-trade agreement (FTA) and are expected to begin talks in the next three to four months, people aware of the matter said.

SACU, which comprises South Africa, Namibia, Botswana, Lesotho, and Eswatini, is the world’s oldest Customs union, dating back over a century.

Read more at : https://www.business-standard.com/economy/news/india-south-african-customs-union-nations-eye-free-trade-agreement-123062500369_1.html

The post India to start FTA talks with African Customs union in next 3-4 months appeared first on Newswire.

India may be seeking a reduction in import duties on some basmati rice varieties from the UK as part of the Free Trade Agreement (FTA) negotiations.

This is to ward off a growing challenge from its nearest competitor in basmati rice Pakistan and also create a wider demand for domestic products, trade and industry sources said.

The duty concession is being sought for basmati varieties that have been recognised by the UK in the last few years. Already, in some traditional basmati varieties, there are some duty relaxations.

Read more : https://www.business-standard.com/economy/news/india-seeks-import-duty-relaxation-for-basmati-rice-in-fta-with-uk-123061800633_1.html

The post India seeks import duty relaxations for basmati rice in FTA with UK appeared first on Newswire.

The fourth round of negotiations on the proposed Sri Lanka-Thailand Free Trade Agreement (SLTFTA) was held in Colombo from 27 – 29 March 2023, the President’s Media Division (PMD) reported.

According to the PMD, this initiative aligns with the President’s vision of enhancing economic relations with large and emerging economies, with a particular focus on ASEAN countries.

On Sunday (26), a 35-member Thai delegation led by Auramon Supathaweethum, Director General of the Department of Trade Negotiations, arrived in Sri Lanka for the fourth round of talks. Along with their focus on trade negotiations, the delegation also strengthened the long-standing religious and cultural ties between the two countries by offering over 500 alms bowls to the Gangarama temple on the same day.

The National Trade Negotiations team representing Sri Lanka at the talks was led by K. J. Weerasinghe, the Chief Negotiator of the Presidential Secretariat. The team comprised officials from various departments, including the Ministry of Foreign Affairs, Ministry of Trade, Commerce and Food Security, Ministry of Industry, Department of Trade and Investment Policy, Attorney General’s Department, Department of Commerce, Department of Agriculture, Central Bank of Sri Lanka and Board of Investment of Sri Lanka. They participated in the negotiations on behalf of Sri Lanka.

During the third round of negotiations in January, discussions on the proposed Sri Lanka-Thailand Free Trade Agreement focused on areas such as trade in goods, trade in services, investment, rules of origin, customs cooperation, trade facilitation, and economic cooperation. 

The PMD stated that the fourth round of talks will build on the principles already agreed upon, and delve deeper into these areas. Additionally, discussions will be held on trade remedies, technical barriers to trade (TBT), and legal matters.

Prior to the fourth round of negotiations, the National Trade Negotiations Committee and relevant sub-committees engaged in discussions with various industry sectors and stakeholders. The points raised during these discussions were taken into consideration and used appropriately during the fourth round of talks.

The Sri Lankan negotiating team’s goals for the talks focussed not only to increase Sri Lankan exports’ access to the Thai market, but also to improve market access to other ASEAN countries through the Thai market, and to reduce existing non-tariff barriers. 

The PMD added that the Sri Lankan Government hopes to sign the agreement in the first quarter of 2024. (NewsWire)

The post Fourth round of negotiations held on proposed SL-Thailand FTA appeared first on Newswire.