By The Pulseline News Desk
Sri Lanka is preparing to renegotiate its four existing Free Trade Agreements (FTAs) and pursue new trade partnerships under a comprehensive policy framework approved by the Cabinet, as the Government seeks to improve market access and strengthen the country’s international trade position.
Foreign Affairs Minister Vijitha Herath has noted that the new FTA policy framework had received Cabinet approval and would be rolled out shortly.
The framework is intended to provide a common policy direction for existing and future trade agreements, ensuring that negotiations are conducted within an approved national strategy.
As part of the process, the Cabinet has approved the appointment of a National Trade Negotiations Committee and a Trade Policy Consultative Committee. Both bodies will include public and private sector specialists, including representatives of trade chambers and business associations.
The committees are expected to play a central role in reviewing existing agreements, identifying areas for improvement and guiding future negotiations.
The four bilateral FTAs covered by the proposed review are those with India, Pakistan, Singapore and Thailand. “There is scope to improve on the existing agreements to make them more favourable to the country than they do now,” Herath has told the media.
The Minister has stressed that all future FTAs and other trade agreements would have to conform to the newly approved policy framework.
The Government is also preparing to expand Sri Lanka’s trade engagement with the Middle East through two proposed Comprehensive Economic Partnership Agreements (CEPAs) with Oman and the United Arab Emirates (UAE), which are expected to be pursued next year. Herath has said Cabinet approval had also been obtained for these initiatives.
Sri Lanka’s existing trade agreements differ considerably in scope and coverage.
The India-Sri Lanka FTA, which came into operation in March 2000, provides preferential market access for selected goods. The Pakistan-Sri Lanka FTA, signed in August 2002, became operational in June 2005.
The Singapore-Sri Lanka FTA, which entered into force in 2018, covers a broader range of areas, including trade in goods and services, investment and other economic activities.
The agreement with Thailand was signed in February 2024 and entered into force in January 2025.
Beyond these bilateral arrangements, Sri Lanka participates in several regional and preferential trade arrangements, including the South Asian Free Trade Area (SAFTA), the SAARC Preferential Trading Arrangement (SAPTA), the Asia-Pacific Trade Agreement (APTA) and the Global System of Trade Preferences (GSTP).
Sri Lankan exporters also benefit from the United Kingdom’s Developing Countries Trading Scheme (DCTS), alongside other preferential market access arrangements.
The proposed review comes as Sri Lanka seeks to broaden its export markets, attract investment and strengthen its integration into regional and global supply chains.
The extent to which the renegotiations will improve market access for Sri Lankan businesses will depend on the terms secured, the sectors covered and the ability of local exporters to take advantage of the concessions offered under the revised agreements.
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