Sri Lanka expects the links to reach new heights

Historical economic ties between Pakistan and Sri Lanka are expected to reach new heights, as Sri Lanka has returned to the course of stability and progress after addressing significant challenges between 2019 and 2023.

It was mentioned by Fred Senevirathne’s High Commissioner (RETD) in a meeting with businessmen at the Lahori Chamber of Commerce and Industry (LCCI).

In Sri Lanka, 12 export processing zones are currently operating in the Investment Council, offering huge opportunities to foreign investors. The High Commissioner called on Pakistani operations to explore the potential of the formation of consortiums and partnerships with their counterparts in Sri Lanka to strengthen financial links.

He stressed that the current Sri Lanka government had effectively faced challenges such as poor governance, economic mismanagement and corruption. “Thanks to the visionary leadership of our new president, the country’s economic and political landscape has stabilized,” he said.

Underlining the improvement of Sri Lanka’s financial indicators, the envoy said that the reserves of foreign exchange, currency and tourism have stabilized.

“The main doors, such as Colombo, Hambantota, Galle and Trincomalee, are among the busiest in the area. Also, Sri Lanka has a specialized workforce and is well connected to the world through strong international transport networks,” he said.

The High Commissioner gave a detailed presentation to the economy of Sri Lanka, the basic reforms undertaken by the country, the growth markers and the priority sectors where enhanced bilateral cooperation could provide mutual benefits.

Speaking on the occasion, LCCI President Mian Abuzar Shad said that both countries had enjoyed strong diplomatic relations since 1948.

Bilateral trade has struggled to cross $ 500 million in recent years. Mian Abuzar said trade volume reached $ 451 million in 2023-24, but was slightly reduced to $ 436 million in 2024-25. During this time, Pakistan’s exports to Sri Lanka amounted to $ 377 million, while imports were about $ 60 million.

He said that Pakistan’s exports to Sri Lanka mainly included cotton fabrics, cement, potatoes, medicinal products and maize, while imports are mainly consisting of vegetables, fiber boards, natural rubber and copra.

Despite the identification of many sectors of cooperation, such as tourism, education, defense and during previous meetings, significant efforts are needed to fully utilize potential.

The LCCI president said that although there was a free deal agreement since 2005, bilateral trade remained under expectations. Sri Lanka’s worldwide exports amount to $ 12 billion, while imports exceed $ 18 billion. “Pakistan has to investigate the roads to increase its share of Sri Lanka’s world trade.”