The historic economic ties between Pakistan and Sri Lanka are set to touch new heights as Sri Lanka has returned to the path of stability and progress after facing significant challenges between 2019 and 2023.
It was stated by Sri Lankan High Commissioner Rear Admiral (Retd) Fred Senevirathne in a meeting with businessmen at the Lahore Chamber of Commerce and Industry (LCCI).
In Sri Lanka, 12 Export Processing Zones are currently operational under the Board of Investment, offering vast opportunities to foreign investors. The high commissioner invited Pakistani businesses to explore the potential of forming joint ventures and partnerships with their Sri Lankan counterparts to strengthen economic linkages.
He stressed that the current government of Sri Lanka had effectively addressed challenges like poor governance, economic mismanagement and corruption. "Thanks to the visionary leadership of our new president, the country's economic and political landscape has stabilised," he said.
Highlighting Sri Lanka's improving economic indicators, the envoy said that foreign exchange reserves, currency and tourism have stabilised.
"Key ports including Colombo, Hambantota, Galle and Trincomalee are among the busiest in the region. Also, Sri Lanka has a skilled workforce and is well-connected to the world through robust international transportation networks," he said.
The high commissioner gave a detailed presentation on the economy of Sri Lanka, the key reforms undertaken by the country, its growth indicators and priority sectors where enhanced bilateral collaboration could deliver mutual benefits.
Speaking on the occasion, LCCI President Mian Abuzar Shad said that both countries had enjoyed strong diplomatic relations since 1948. Both are active members of Saarc and the Commonwealth of Nations, yet the full potential of their trade partnership remains largely untapped.
Bilateral trade has struggled to cross $500 million in recent years. Mian Abuzar said that trade volume reached $451 million in 2023-24, but declined slightly to $436 million in 2024-25. During this period, Pakistan's exports to Sri Lanka stood at $377 million, while imports were around $60 million.
He mentioned that Pakistan's exports to Sri Lanka primarily comprised woven cotton fabrics, cement, potatoes, pharmaceuticals and maize, while imports mainly consisted of vegetables, fibre board, natural rubber and copra.
Despite identifying several areas of cooperation such as tourism, education, defence and IT during previous meetings, significant efforts are still needed to fully realise the potential.
The LCCI president said that although a free trade agreement had been in place since 2005, bilateral trade remained below expectations. Sri Lanka's global exports stand at $12 billion, while imports exceed $18 billion. "Pakistan must explore avenues to increase its share in Sri Lanka's global trade."
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ