• Sri Lanka and the United Kingdom maintain a strong and longstanding bilateral relationship encompassing trade, investment, and tourism, supported by deep historical ties and shared economic interests. The United Kingdom remains one of Sri Lanka’s most important trading partners and is currently the second-largest single export destination, accounting for 7.52% of Sri Lanka’s total exports in 2024. Sri Lanka’s exports to the UK are highly concentrated in the apparel sector, which accounts for approximately 73% of total exports, valued at around USD 660 million in 2024.

• Agreement on the Avoidance of Double Taxation between Sri Lanka and the United Kingdom (signed on 21 June 1979)
• Sri Lanka–United Kingdom Bilateral Investment Treaty (signed on 13 February 1980; entered into force on 18 December 1980; currently in force)
• Developing Countries Trading Scheme (DCTS) (implemented on 19 June 2023), providing preferential tariff access to Sri Lankan exports

• Economic relations between the Democratic Socialist Republic of Sri Lanka and Hungary are defined by a slow recovery of trade to pre-2019 levels and a steadily growing tourism sector. Total bilateral trade turnover was recorded at USD 49.85 million in 2025, with Sri Lanka recording a trade surplus of USD 20.25 million. Sri Lankan exports reached USD 35.05 million, primarily led by tobacco and manufactured tobacco substitutes (82.05% of total trade value), while imports from Hungary totaled USD 12.03 million. Investment relations are characterized by a EUR 52 million soft loan for infrastructure development in Sri Lanka. Tourism continues to serve as a vital link, evidenced by 6,408 Hungarian arrivals in 2025, representing a 2.61% decrease compared to 2024.

• Memorandum of Understanding (MoU) on Cooperation within the Framework of the Stipendium Hungaricum Programme for the years 2025–2027.
• Framework Agreement for Financial Cooperation with Hungary (2022)
• Signing of Agreement on Debt Restructuring between Hungary and the Government of Sri Lanka in relation to External Debt Restructuring Process (2025)
• EU Generalised Scheme of Preferences Plus (GSP+) .
• Cooperation Agreement between the European Community and its Member States and the Democratic Socialist Republic of Sri Lanka on Partnership and Development (1994).
• EU GSP+: Regional cumulation between Indonesia and Sri Lanka (2024) (Link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C_202404627) 
  
  Sources:
  - The Ministry of Education, Higher Education and Vocational Education of the Democratic Socialist Republic of Sri Lankа 
  - Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka 
  - Department of Commerce of Sri Lanka 
  - Official Journal of the European Union

• Economic relations between the Democratic Socialist Republic of Sri Lanka and the Czech Republic are characterized by stagnating trade growth and a resilient tourism sector. In 2025, total bilateral trade turnover was recorded at USD 45.08 million, with Sri Lanka maintaining a trade surplus of USD 22.16 million. Sri Lankan exports reached USD 33.62 million, primarily comprising apparel and miscellaneous edible preparations, while imports from the Czech Republic totaled USD 11.46 million, largely consisting of printed circuits. Cumulative Foreign Direct Investment from 2005 to 2023 stands at USD 5.74 million. Tourism remains a significant pillar, with 19,082 Czech arrivals recorded in 2025, returning to the pre-pandemic peak in 2019.

• Agreement on Mutual Cooperation between the Ministry of Development Strategies & International Trade of Sri Lanka and the Ministry of Industry and Trade of the Czech Republic (2018)
• Bilateral Investment Treaty (BIT) on the Promotion and Reciprocal Protection of Investments (Entered into force June 2016).
• Bilateral Agreement between the Government of the Czech Republic and Sri Lanka on the elimination of Double Taxation (2023).
• EU Generalised Scheme of Preferences Plus (GSP+).
• Cooperation Agreement between the European Community and its Member States and the Democratic Socialist Republic of Sri Lanka on Partnership and Development (1994).
• EU GSP+: Regional cumulation between Indonesia and Sri Lanka (2024) (Link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C_202404627) 
  
  Sources:
  - Ministry of Foreign Affairs of the Czech Republic
  - Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka
  - Department of Commerce of Sri Lanka
  - Official Journal of the European Union

• Economic relations between the Democratic Socialist Republic of Sri Lanka and Serbia are defined by a strong growth of trade turnover with Serbia and a strong trade surplus in favor of Sri Lanka. Total bilateral trade turnover was recorded at USD 20.76 million in 2024, with Sri Lanka recording a trade surplus of USD 3.64 million. Sri Lankan exports reached USD 12.2 million, primarily led by apparel and tea, while imports from Serbia totaled USD 8.56 million, primarily consisting of Maize (corn). Investment relations are minimal. Tourism continues to grow steadily, evidenced by 2,297 Serbian arrivals in 2025, representing 13.99% increase compared to 2024.

• Trade Agreement between the Government of Ceylon and the Government of the Federal People's Republic of Yugoslavia (1953) 
  -Protocol to the Trade Agreement between the Government of Ceylon and the Government of the Federal People's Republic of Yugoslavia & Implementation of Art. 1 of the Protocol (1959) 
  -Protocol of amendment of Article 6 of the existing Trade Agreement between the Government of Sri Lanka and Yugoslavia (1975) 
   
• Serbian-Sri Lankan Double Tax Avoidance Agreement (DTAA) (1987)
• Agreement on Scientific and Technical Cooperation between between the Government of Ceylon and the Government of the Federal People's Republic of Yugoslavia (1959)
• Agreement between between the Government of Sri Lanka and the Government of the Federal People's Republic of Yugoslavia in the field of Information Activities (1980)
• Joint Committee for Economic Cooperation between Yugoslavia and Sri Lanka (1986)
• Agreement between the Government of Sri Lanka and the Government of the Federal People's Republic of Yugoslaviaon Cooperation regarding the Utilization of Nuclear Energy for Peaceful Purposes (1980)
• Air Services Agreement between Sri Lanka and Serbia (2018)
• Sri Lankan Business Club (SLBC) in Serbia (established in 2018) 
  
  Sources:
  - Ministry of Foreign Affairs of Serbia 
  - Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka 
  - Department of Commerce of Sri Lanka

• Economic relations between the Democratic Socialist Republic of Sri Lanka and Bosnia and Herzegovina are defined by a steady growth of exports since 2019 and a strong trade surplus in favor of Sri Lanka. Total bilateral trade turnover was recorded at USD 3.67 million in 2025, with Sri Lanka recording a trade surplus of USD 2.31 million. Sri Lankan exports reached USD 2.99 million, primarily led by apparel and machinery parts, while imports from Bosnia and Herzegovina totaled USD 608 thousand, primarily consisting of Paper articles. Investment relations are minimal. 
  Tourism continues to grow steadily, recovering from a low in 2021 (19 arrivals), evidenced by 350 tourist arrivals in 2025, representing 14.4% increase compared to 2024.

• Bosnia and Herzegovina – Sri Lanka Double Taxation Treaty (1987) 
  
  Sources:
  - Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka 
  - Department of Commerce of Sri Lanka

• Economic relations between the Democratic Socialist Republic of Sri Lanka and the Republic of Austria are defined by a recovery of trade flows compared to 2021 and a revitalized tourism sector. Total bilateral trade turnover was recorded at USD 86.05 million in 2025, with Sri Lanka recording a trade surplus of USD 6.79 million. Sri Lankan exports to Austria reached USD 46.42 million, primarily comprising apparel and athletic equipment, while imports from Austria totaled USD 39.63 million, largely consisting of industrial man-made staple fibers. Investment relations are currently limited, with the Board of Investment reporting cumulative Foreign Direct Investment of USD 5.33 million from 2005 to 2024. Tourism remains a core pillar of bilateral engagement, as evidenced by the 18,188 Austrian arrivals in 2025, representing a 6.34% annual increase.

• MoU on Debt Restructuring between the Official Creditor Committee and Sri Lanka (2024)
• EU Generalised Scheme of Preferences Plus (GSP+) (2024) 
  -GSP+: Regional cumulation between Indonesia and Sri Lanka (2024) (Link: https://eurlex.europa.eu/legalcontent/EN/TXT/PDF/?uri=OJ:C_202404627)
• Double Taxation Avoidance Agreement (DTAA): Technical negotiations were finalized in 2023, with final administrative documentation for the latest amendment completed in early 2026; the formal signature is currently pending.
• Horizontal Air Services Agreement (2012)
• Air Transport Agreement between the Austrian Federal Government and the Government of the Democratic Socialist Republic of Sri Lanka (2016)
• Cooperation Agreement between the European Community and Its Member States and the Democratic Socialist Republic of Sri Lanka on Partnership and Development (1994) 
  
  Sources:
  - Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka 
  - Department of Commerce of Sri Lanka
  -Official Journal of the European Union

• Economic relations between the Democratic Socialist Republic of Sri Lanka and the Slovak Republic are defined by a fluctuating trade turnover, consistent trade surpluses for Sri Lanka and a recovering tourism sector. Total bilateral trade turnover was recorded at USD 19.16 million in 2025, with Sri Lanka maintaining a trade surplus of USD 14.13 million. Sri Lankan exports reached USD 16.65 million, primarily comprising apparel and textiles, while imports from Slovakia totaled USD 2.51 million, largely consisting of motor vehicles and industrial filaments. Investment relations remain limited, with no significant foreign direct investment reported as of 2024. Tourism demonstrates steady growth, with 7,322 Slovak arrivals in 2025, representing a 9.12% annual increase.

• EU Generalised Scheme of Preferences Plus (GSP+) (2024) 
  -GSP+: Regional cumulation between Indonesia and Sri Lanka (2024) (Link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C_202404627)
• Initiation of an Agreement between the Government of the Slovak Republic and the Government of the Democratic Socialist Republic of Sri Lanka for the avoidance of double taxation (2026).
• Memorandum of Understanding between the Ceylon Chamber of Commerce of Sri Lanka and the Slovak Investment and Trade Development Agency (2018).
• Agreement between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (1979).
• Cooperation Agreement between the European Community and its Member States and the Democratic Socialist Republic of Sri Lanka on Partnership and Development (1994). 
  
  Sources:
  - The Ministry of Foreign and European Affairs of Slovakia 
  -Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka 
  - Department of Commerce of Sri Lanka
  -Official Journal of the European Union

• Economic relations between the Democratic Socialist Republic of Sri Lanka and the Republic of Slovenia are defined by fluctuating trade flows and a consistent recovery in tourism. Total bilateral trade turnover reached USD 19.73 million in 2025, with Sri Lanka maintaining a trade surplus of USD 13.17 million. Sri Lankan exports totaled USD 16.45 million, primarily comprising tobacco substitutes and apparel, while imports from Slovenia were USD 3.28 million. Investment remains limited, with no significant foreign direct investment recorded since 2019. Tourism engagement is reflected in the 3,698 Slovenian arrivals in 2025, a 6.36% annual increase.

• EU Generalised Scheme of Preferences Plus (GSP+).
• Cooperation Agreement between the European Community and its Member States and the Democratic Socialist Republic of Sri Lanka on Partnership and Development (1994).
• Memorandum of Understanding between the Ceylon Chamber of Commerce of Sri Lanka and the Slovak Investment and Trade Development Agency (2018).
• EU GSP+: Regional cumulation between Indonesia and Sri Lanka (2024) (Link: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C_202404627) 
  
  Sources:
  -Ministry of Foreign Affairs, Foreign Employment and Tourism of Sri Lanka 
  - Department of Commerce of Sri Lanka
  -Official Journal of the European Union
  -UN Trade and Development (UNCTAD)

Trade Relations

• As a key partner in the Belt and Road Initiative (BRI), Sri Lanka maintains strong economic ties with China. In 2025, bilateral trade reached US $5,425.72 million. Sri Lankan exports to China totaled US $278.57 million, marking a 10.58% increase from 2024. Primary exports include Ceylon tea, apparel, rubber-based products, gems and jewelry, minerals, activated carbon, and coconut products.
• Concurrently, imports from China have grown from US $160 million in 1995 to US $5 billion in 2025. This growth is largely driven by China’s technological innovations, resulting in increased imports of smartphones, electric vehicles, and electronics, alongside traditional imports like textiles and fertilizer.

Investment Relations 

• China has been a vital investment partner since 2012, with major BRI projects including the Colombo Port City and Hambantota Port. Total Chinese investment from 2005 to 2024 exceeded US $3.5 billion, generating over 5,000 jobs. Collaborative efforts have also delivered essential infrastructure in expressways, power generation, and urban development. These relations are supported by a Bilateral Investment Treaty (1987) and a Double Taxation Avoidance Agreement (2003).

Tourism Relations

• China is a leading source of tourism for Sri Lanka, currently ranking 5th in arrivals. While the pandemic caused a decline between 2020 and 2022, the sector is recovering significantly. Arrivals reached 131,681 in 2024 and grew to 132,035 in 2025.

• MOU on Promoting Industrial and Investment Cooperation between the National Development and Reforms Commission of the People’s Republic of China and the Ministry of Investment Promotion of the Democratic Socialist Republic of Sri Lanka.
• MOU on Technical Cooperation of Entry and Exit Animal and Plant Quarantine between the General Administration of Customs of China and the Department of Agriculture of Sri Lanka
• MOU on cooperation in standardization between Standardization Administration of China and Sri Lanka Standard Institution.
• MOU on Trade Promotion Cooperation between the Ministry of Commerce of the People’s Republic of China and the Ministry of Trade, Commerce and Food Security of Sri Lanka.
• MOU on strengthening Economic Cooperation in Industrial and Supply Chains between the Ministry of Commerce of the People’s Republic of China and the Ministry of Industry and Entrepreneurship Development of Sri Lanka.
• MOU on establishing working group on Promoting Unimpeded Trade between the Ministry of Commerce of the People’s Republic of China and the Ministry of Trade, Commerce, Food Security and Cooperative Development of Sri Lanka.
• MOU on Establishment of the Investment and Economic Cooperation Working Group between the Ministry of Commerce of the People’s Republic of China and the Ministry of Finance, Planning and Economic Development of the Democratic Socialist Republic of Sri Lanka.

Market Access Protocols:

• The Protocol between the General Administration of Customs of the People's Republic of China and the Ministry of Agriculture and Plantation Industries of the Democratic Socialist Republic of Sri Lanka on Phytosanitary Requirements for the export of Fresh Pineapples from Sri Lanka to China.
• The Protocol between the General Administration of Customs of the People's Republic of China and the Ministry of Agriculture and Plantation Industries of the Democratic Socialist Republic of Sri Lanka on Sanitary and Phytosanitary Requirements for the Export of Wheat Bran Pellets from Sri Lanka to China.
• The protocol between the General Administration of Customs of the People's Republic of China and the Ministry of Agriculture, Livestock, Land and Irrigation of the Democratic Socialist Republic of Sri Lanka on the Inspection, Quarantine and Sanitary Requirements of Poultry imported from Sri Lanka.
• The Protocol between the General Administration of Customs of the People's Republic of China and the Ministry of Fisheries of the Democratic Socialist Republic of Sri Lanka on the inspection and quarantine requirements of wild aquatic products exported from Sri Lanka to China.
• The Protocol between the General Administration of Customs of the People's Republic of China and the Ministry of Agriculture and Plantation Industries of the Democratic Socialist Republic of Sri Lanka on Phytosanitory Requirements for export of Ceylon Cinnamon from Sri Lanka to China.

1. Introductory Overview of Bilateral Economic Relations 
 

• Sri Lanka and Japan continue to maintain a long-standing and mutually beneficial economic partnership, underpinned by sustained engagement in trade, investment, and tourism. Bilateral trade remains a cornerstone of this relationship, with Japan serving as an important export destination for Sri Lankan products such as apparel, tea, and rubber-based goods, while also acting as a key supplier of high-quality machinery, vehicles, and advanced technology. Japanese investments in Sri Lanka have played a pivotal role in the development of infrastructure, manufacturing, and services sectors, reflecting continued confidence in Sri Lanka’s economic potential.
• Tourism exchanges between the two countries have also demonstrated steady recovery and growth, further strengthening people-to-people ties and cultural connectivity. The overall economic partnership continues to evolve in line with shared commitments to sustainable development, regional cooperation, and enhanced commercial linkages. In this context, the inaugural Session of the Japan–Sri Lanka Intergovernmental Economic Policy Dialogue was successfully convened on 16 February 2026 at the Ministry of Finance, Planning and Economic Development in Colombo, marking a significant milestone in deepening bilateral economic engagement. 

1.1 Trade Relations 

• Exports from Sri Lanka to Japan amounted to US$ 187.37 million in 2025. Major export commodities included apparel (US$ 25.74 million), tea (US$ 39.59 million), rubber products (US$ 18.2 million), activated carbon (US$ 4.79 million), and porcelain products (US$ 3.23 million).
• Imports from Japan to Sri Lanka totaled US$ 1,118 million in 2025, predominantly comprising vehicles and parts, machinery, and industrial equipment, highlighting Japan’s role as a key supplier of capital and intermediate goods. Since 1971, Sri Lanka has benefited from Japan’s Generalized System of Preferences (GSP) scheme under its Temporary Tariff Measures Law. This scheme provides preferential tariff concessions, including a reduction of 4.9 percentage points since 2012, covering 337 agricultural and fishery products and 3,216 industrial products. 

1.2 Investment Relations

• Japanese foreign direct investment (FDI) in Sri Lanka dates back to the early 1970s, with a landmark joint venture established in 1972 between Noritake of Japan and the Ceylon Ceramics Corporation. Since then, Japanese investments have made a significant contribution to Sri Lanka’s industrial and economic development. Cumulative FDI inflows from Japan between 2005 and the first half of 2024 amounted to US$ 451.51 million. Japanese investments span a diverse range of sectors, including manufacturing, apparel, infrastructure, knowledge services, tourism and leisure, utilities, services, and agriculture. 

1.3 Tourism Relations

• Tourist arrivals from Japan to Sri Lanka reached 38,153, reflecting a 25% increase compared to 30,429 arrivals in 2025. This upward trend indicates a gradual recovery in tourism flows and growing interest among Japanese travelers in Sri Lanka as a destination.

Key Bilateral Agreements and MoUs

• Sri Lanka and Japan have established a robust framework of agreements to promote economic cooperation, investment protection, and trade facilitation. Key agreements include:

2.1 Memorandum of Cooperation on Economic Policy Dialogue (2026)

• Signed on 16 February 2026 in Colombo between the relevant ministries of both countries, establishing a formal platform for structured economic policy engagement.

2.2 Investment Protection and Double Taxation Agreements 

• Bilateral Investment Treaty signed on 01 March 1982 (entered into force on 07 August 1982). Agreement for the Avoidance of Double Taxation signed on 12 December 1967 (implemented in Sri Lanka from 1969/70).

2.3 MoUs with Japanese Financial Institutions

• To promote increased Japanese investment into Sri Lanka, the Board of Investment of Sri Lanka has signed MoUs with:
  • Bank of Tokyo Mitsubishi UFJ (18 August 2014)
  • Mizuho Bank Ltd. (07 September 2014)

• Sri Lanka and Israel maintain friendly bilateral relations, with diplomatic ties established in 1956, and cooperation focused on trade, labour, and tourism, while expanding into new sectors. Israel is an important trading partner, with total trade reaching USD 256.28 million in 2023. Sri Lanka’s exports, mainly diamonds, tea, seafood, rubber, and coconut-based products complement Israel’s exports of industrial and high-technology goods such as machinery, textiles, aircraft parts, and electronic equipment. In 2024, Israel’s imports from Sri Lanka were valued at USD 78.72 million. There is scope to expand economic engagement in sectors such as apparel, agriculture, rubber and plastic products, and gemstones, as well as in areas like agriculture technology, water management, digital innovation, cyber security, and research and development. Tourism continues to support people-to-people links, with 25,504 Israeli tourist arrivals recorded in 2025. Overall, relations remain steady, with opportunities for further growth in trade, investment, and technical cooperation.

• Agreement on Trade and Economic Co-Operation between Sri Lanka and State of Israel, signed 25 April 2007
• Agreement between Sri Lanka and the State of Israel on Cooperation in field of Agriculture

Trade relations: 

• The volume of bilateral trade between Sri Lanka and the Republic of Korea stood at US$ 336.53 Mn. in 2025, consisting of Sri Lanka’s exports of US$80.30 Mn and import of US$ 256.23 Mn. with a favorable Balance of Trade for the Republic of Korea. 
  Apparel is the dominant export item of Sri Lanka’s exports to ROK, accounting for over 30 % of total export earnings from ROK. Activated carbon natural mineral products, vegetable textile fibres; paper yarn and wovan fabrics of paper yarn, Articles of apparel and clothing accessories (including gloves), Retreaded or used pneumatic tyres of rubber, Tea, waste scrap are other top export products to ROK. 
  Sri Lanka imports from ROK consists of Metals & Base Metal Products, Rubber & Plastic Products, Chemicals & Chemical Products, Petroleum & Energy Products, Electrical, Electronics & Machinery Pharmaceuticals fabrics 
  Although the trade volume is modest, there is much potential for increase in bilateral trade between the two countries.

Investment relations: 

• Republic of Korea is an important source of investment including Foreign Direct Investment (FDI) to Sri Lanka. Korean investment has over 49 companies based in Sri Lanka and has generated more than 2000 job opportunities in the country.
• During 2005-2025, ROK’s investment recorded total value of 75 $ million which the highest amount of FDI has been received for the Rubber related Manufacturing Sector followed by Property Development, wearing apparel, Garment Accessories Manufacturing etc.
• Target sectors for investments from the ROK are; Manufacturing of Electronics, Electrical equipment, IT services, Textiles / accessories, Petrochemicals and Pharmaceuticals.

Tourism relations: 

• Korean tourist arrivals in Sri Lanka which stood at 4,318 in 2010, has increased to 10,800 in 2024 and further increased to 12,169 arrivals in 2025. ROK has identified as a potential market for Sri Lanka tourism and it was the 29th largest source of tourist traffic to Sri Lanka in 2025.
• Direct air connectivity with two times per week would be a bridge to further increase Korean tourist arrivals.
• The potential outbound market from ROK to Sri Lanka would include sectors that are relatively limited in the ROK but abundant in Sri Lanka. Some of the potential areas are; Leisure, Ocean, coast & palm trees, Nature, Sports and activities that require big space and nature, Food and exotic fruits experiences and Safari & Animals

• Bilateral Agreements/ MoUs: 
  The Government of the Democratic Socialist Republic of Sri Lanka and the Government of the Republic of Korea have entered into agreements on the following;

  • Economic Cooperation
  • Promotion and Protection of Investment
  • Convention on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect of Taxes on Income
  • Air Services
  • MoU on the Investment Cooperation between Board of Investment of Sri Lanka and Korea Trade Investment Promotion Agency of the Republic of Korea 

  Regional Agreements:

  • Asia Pacific Trade Agreement (APTA)

• Sri Lanka and India maintain strong economic ties, with India as a top trading partner, investor, and source of tourism for Sri Lanka.
• The trade relationship reflects both strong export and import flows and a diverse mix of commodities. Sri Lanka’s major export items include areca nuts, animal feeds, pepper, vegetable fats and their fractions, byproducts of petroleum oil, apparel, rubber products, coconut products, non-alcoholic beverages, bicycles and ceramic products. Imports from India are dominated by petroleum oils, woven and knitted fabrics, pharmaceuticals, motor vehicles, cement, onion, lentils and other food items, paper and paper boards, and sugar along with sugar confectionery and bakery products. This composition illustrates the complementary nature of bilateral trade, with Sri Lanka exporting niche agricultural and industrial products while relying on India for essential energy, textile inputs, and consumer goods.
• In 2025, India was both the second-largest export destination and second-largest source of imports for Sri Lanka. Sri Lanka’s exports to India amounted to US $1,035.72 million and imports from India stood at US $ 4,330.01 million.
• Bilateral trade under the Indo-Sri Lanka Free Trade Agreement is duty free with specific exceptions. India’s negative list includes 429 items and Tariff Rate Quotas on specific products, while Sri Lanka’s negative list excludes 1,180 products from Indian duty free access.
• Between 2005 and the second quarter of 2025 India’s foreign direct investment in Sri Lanka amounted to US $ 2.3 billion. During this period, 197 Indian companies commenced operations in Sri Lanka. An additional 29 projects remain in the pipeline, signaling continued investor interest. These investments have generated employment opportunities for 16,335 individuals as at 2024 across various sectors.
• Of the total of 2,362, 521 tourist arrivals to Sri Lanka in 2025, India accounted for 22.5 per cent or 531,511, becoming the highest source of arrivals to the country that year. This is a 27% increase from the previous year, with 416,974 Indian tourists accounting for 20 per cent of the total tourist arrival number of 2,053,465. Travel has been facilitated with SriLankan Airlines operating 89 weekly flights from Colombo to nine key destinations in India.
• As an all-year tourist destination, Sri Lanka is now also a sought-after destination for weddings, film shooting and MICE tourism from India.

• India-Sri Lanka Free Trade Agreement (1998)
• India-Sri Lanka Agreement on the Avoidance of Double Taxation (2013)
• Custom Cooperation Agreement (2015)
• Bilateral Air Services Agreement (1948) and revised by Memorandum of Understanding on Bilateral Air Services (2011)
• Open Sky Agreement (2016)

• Sri Lanka and Israel maintain friendly bilateral relations, with diplomatic ties established in 1956, and cooperation focused on trade, labour, and tourism, while expanding into new sectors. Israel is an important trading partner, with total trade reaching USD 256.28 million in 2023. Sri Lanka’s exports, mainly diamonds, tea, seafood, rubber, and coconut-based products complement Israel’s exports of industrial and high-technology goods such as machinery, textiles, aircraft parts, and electronic equipment. In 2024, Israel’s imports from Sri Lanka were valued at USD 78.72 million. There is scope to expand economic engagement in sectors such as apparel, agriculture, rubber and plastic products, and gemstones, as well as in areas like agriculture technology, water management, digital innovation, cyber security, and research and development. Tourism continues to support people-to-people links, with 25,504 Israeli tourist arrivals recorded in 2025. Overall, relations remain steady, with opportunities for further growth in trade, investment, and technical cooperation.

• Agreement on Trade and Economic Co-Operation between Sri Lanka and State of Israel, signed 25 April 2007
• Agreement between Sri Lanka and the State of Israel on Cooperation in field of Agriculture

• Spain has emerged as a dynamic and increasingly relevant partner for Sri Lanka within the European Union, particularly in the context of trade diversification and market expansion. While not traditionally among Sri Lanka’s largest trading partners, Spain’s importance has grown steadily due to strengthening business linkages and sector-specific complementarities. Sri Lankan exports, especially seafood and apparel, have gained recognition in the Spanish market for quality and sustainability. Spain’s strategic position as a logistics and distribution hub for Southern Europe further enhances its role as a gateway for Sri Lankan products into wider regional markets. As global demand increasingly shifts towards sustainably sourced and traceable products, Sri Lanka is well-positioned to expand its presence in Spain through value-added and niche exports.
• In 2024, total bilateral trade between the two countries is estimated at approximately USD 170 million. Sri Lanka’s key exports to Spain include seafood (notably tuna and shrimp), garments, tea, and rubber products, while imports from Spain consist mainly of machinery, ceramics, chemicals, and agri-food products. There is significant potential to further diversify exports, particularly in processed seafood, coconut-based products, spices including Ceylon Cinnamon, value-added tea, activated carbon, and apparel. Participation in major trade exhibitions such as Alimentaria and Seafood Expo Global in Barcelona continues to support trade promotion and market access.
• Spain also represents a growing secondary tourism market for Sri Lanka, with a steady increase in visitor numbers in recent years, reaching approximately 47,000 arrivals in 2025. Spanish travellers are typically drawn to destinations offering rich cultural heritage, biodiversity, and immersive experiences. Sri Lanka’s positioning as a compact destination with diverse attractions, including heritage sites, wildlife, and coastal tourism, aligns closely with these preferences. Additionally, Sri Lanka is increasingly recognized as a honeymoon destination among younger Spanish travellers. Continued engagement through international tourism fairs such as FITUR Madrid, along with targeted marketing and partnerships with tour operators, is expected to further enhance arrivals.
• Investment relations between Sri Lanka and Spain remain at an early stage but present promising opportunities for growth. Spain’s global expertise in tourism development, renewable energy, and infrastructure provides a strong basis for future collaboration. While current investment levels are modest, there is growing interest in sectors such as hospitality, clean energy, fisheries, and logistics.

• EU- Sri Lanka Joint Commission
• GSP + unilateral tariff benefits of the European Union

• Trade relations between Sri Lanka and Portugal remain modest in scale but demonstrate stability and gradual expansion, particularly in niche and value-added segments. As a smaller European Union economy, Portugal does not represent a high-volume market; however, it offers targeted opportunities for Sri Lankan exporters, especially in high-quality apparel, agricultural products, and specialty goods. The bilateral trade structure reflects a relatively balanced exchange, indicating a stable and complementary relationship. Portugal’s growing emphasis on sustainability, innovation, and premium consumption aligns well with Sri Lanka’s evolving export strategy focused on value addition and diversification.
• In 2024, total bilateral trade between Sri Lanka and Portugal is estimated at approximately USD 32 million. Sri Lanka’s key exports include apparel, fruits, seafood, and rubber-based products, while imports from Portugal consist mainly of cotton, machinery, and pharmaceuticals. There is notable potential to expand exports in areas such as coconut-based products, nutraceuticals, processed foods, ICT/BPO services, Ceylon Cinnamon, and value-added tea.
• Portugal represents a small but niche tourism market for Sri Lanka, with approximately 7,000 arrivals recorded in 2025 and a steady upward trend in recent years. Portuguese travellers are typically drawn to culturally rich and authentic destinations, with a preference for heritage, nature, and leisure experiences. Sri Lanka’s diverse tourism offering, including cultural and religious heritage sites, coastal attractions, and biodiversity, aligns well with these preferences. Additionally, the historical links between Sri Lanka and Portugal present a unique opportunity to strengthen destination branding and cultural tourism promotion in the Portuguese market. While overall awareness of Sri Lanka remains limited, targeted marketing efforts and regional partnerships can significantly enhance visibility. Participation in international travel fairs such as BTL Lisbon could further enhance market access and visibility.

• EU- Sri Lanka Joint Commission
• GSP + unilateral tariff benefits of the European Union

• Bilateral trade between Sri Lanka and Italy has a steady growth over the years, with Sri Lanka maintaining a favorable trade balance. Sri Lanka’s exports to Italy are predominantly composed of apparel and textiles, benefiting from strong demand in the European market. Other key exports include industrial rubber tyres, seafood, tea and gems. Sri Lanka’s exports to Italy are also facilitated by preferential market access provided under the EU GSP+ scheme. On the import side, Italy exports fabrics, machinery, industrial equipment, iron and steel and chemicals to Sri Lanka. Although trade volumes fluctuate due to global economic conditions, the overall trend indicates strengthening commercial ties and increasing market integration between the two countries.
• Investment flows between the two countries, while moderate, are gradually expanding. Italian investments in Sri Lanka are mainly concentrated in export-oriented manufacturing, particularly in textiles and apparel and small-to-medium scale enterprises. These investments bring advanced technology, design expertise and improved production standards, thereby enhancing Sri Lanka’s competitiveness in international markets and facilitating access to European supply chains. Sri Lanka’s outward investment in Italy remains limited, however, business partnerships, subcontracting arrangements and supply chain linkages have created indirect forms of economic engagement. Supported by bilateral agreements such as the Avoidance of Double Taxation Agreement and the Bilateral Investment Promotion and Protection Treaty, there remains significant potential for further investment growth in sectors such as renewable energy, tourism infrastructure and agro processing.
• Tourism constitutes another important pillar of bilateral relations. Italy is a key European source market for Sri Lanka tourism, with Italian visitors attracted to the country’s cultural heritage, beaches, ancient historical sites and wildlife. Italian tourists also demonstrate a strong preference for sustainable tourism practices. Following the global downturn during the pandemic, tourist arrivals from Italy have shown a notable recovery, surpassing pre-pandemic levels, although they remain sensitive to global uncertainties. Enhanced direct air connectivity could further strengthen this sector, while longstanding cultural ties contribute to repeat visits and deeper engagement.
• Beyond trade, investment and tourism, Sri Lanka and Italy maintain close cooperation in development, education and cultural exchange. Italy has supported Sri Lanka through development assistance projects, particularly in areas such as rural development, vocational training and humanitarian aid. Additionally, the Sri Lankan community in Italy plays a significant role by contributing remittances and fostering people-to-people connections, thereby further strengthening bilateral relations.

• Bilateral Investment Promotion and Protection Treaty between Italy and Sri Lanka (signed on 25.03.1987 and came into force on 20.03.1990)
• Avoidance of Double Taxation Agreement between Italy and Sri Lanka (signed on 28th March 1984)
• Agreement on Bilateral Cooperation on Labor Migration between Italy and Sri Lanka (signed on 18 November 2011, however, a new text has been proposed for this agreement and currently awaiting a response from the Italian side)

• Sri Lanka and the Kingdom of Bahrain enjoy robust ties underpinned by trust and mutual respect. Diplomatic relations between Sri Lanka and the Kingdom of Bahrain were established on 27 June 1992. Bilateral relations were further strengthened with the opening of a resident Sri Lankan Embassy in Manama on 31 March 2013, enhancing diplomatic engagement and cooperation between the two countries.
• Over the years high-level exchanges have played a pivotal role in deepening bilateral relations. The official visit of the late Prime Minister of Bahrain, His Royal Highness Prince Khalifa bin Salman Al Khalifa, in 2009 to Sri Lanka, and the State visit of the then President of Sri Lanka, His Excellency Mahinda Rajapaksa, in 2014 to the Kingdom of Bahrain stand as significant milestones that has elevated cooperation across multiple sectors and reaffirmed the strong ties between the two nations.
• In recent years, high-level interactions have continued to contribute to strengthening of bilateral cooperation. Notably, the visit to Bahrain of Hon. Sunil Kumara Gamage, Minister of Youth Affairs and Sports of Sri Lanka, from 21st to 23rd October 2025 on the invitation of His Highness Khaled bin Hamad Al Khalifa, President of the Bahrain Olympic Committee to attend the 3rd Asian Youth Games further underscored the growing engagement in the fields of youth development and sports.
• Tourism represents an increasingly important pillar of bilateral engagement, with encouraging growth trends in recent years. Tourist arrivals from Bahrain to Sri Lanka reached 1,310 in 2025, compared to 1,169 in 2024. Bahrain’s national carrier Gulf Air operates a daily flight to Colombo seven days a week supporting ease of air connectivity.

• The following Agreements/MoUs have been signed between Sri Lanka & Bahrain:
  • Air Services Agreement - signed on 23.10.1996
  • MoU between Aeronautical Authorities of the Govt. of Sri Lanka & the Govt. of Bahrain - 28.02.2005
  • Agreement Between the Bahrain Chamber of Commerce and the Ceylon Chamber of Commerce - signed on 03.09.2007
  • MoU in the Field of Manpower between Sri Lanka & Bahrain (MoU signed on 23.04.2008 - Labor and Occupational Training)
  • MoU for Bilateral Cooperation between the Ministries of Foreign Affairs of the Kingdom of Bahrain and Sri Lanka - signed on 29.07.2009
  • MoU on Economic, Commercial and Technical Cooperation - signed on 29.07.2009
  • MoU for Cooperation in the Field of Tourism - signed on 29.07.2009
  • Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion regarding Income Taxes - signed on 11.07.2014
  • Memorandum of Understanding in the field of Sports - signed on 28.04.2014
  • MoU on cooperation in the field of Culture and Art – signed on 28.04.2014
  • MoU between Bahrain Chamber of Commerce & Industry and the Sri Lanka Women’s Chamber of Industry & Commerce- signed on 29.04.2014
  • MoU between the University of Colombo and the University of Bahrain signed on 28.04.2014
  • Agreement on the Exemption from Visa Requirements for Diplomatic, Special and Official Passports between the Kingdom of Bahrain and Sri Lanka – signed on 26.07.2022

• Sri Lanka and Poland have enjoyed cordial bilateral relations since 1957, with nearly seven decades of steady progress in relations. Sri Lanka maintains a resident Mission in Warsaw since 1999, and had appointed a Honorary Consul in Gdansk. There had been 03 political consultations since the inception of relations. The Embassy is also concurrently accredited to Bulgaria. Recent bilateral visits include the following:
  • Official visit of Minister of Foreign Affairs of Poland, Radoslaw Sikorski, to Sri Lanka, in the context of the Poland’s Presidency of the Council of the European Union from 28-29 May 2025.
  • Official visit of Minister of Foreign Affairs of Sri Lanka M.U.M. Ali Sabry, to Poland from 18-21 July 2024.
  • Official visit of State Minister of Foreign Affairs, Tharaka Balasuriya to Warsaw for the 3rd Political Consultations from 14-15 June 2023.

Trade Relations 

• Main export products to Poland include tea, apparel & textiles, rubber & rubber-based products, while main imports from Poland include, sugars, sugar confectionery & bakery products, paper & paper products, cocoa and cocoa preparations.
• Sri Lanka also utilizes the Generalized System of Preferences (GSP)Scheme to export products to the European Union, including Poland.
• As per the latest available statistics, Sri Lanka’s exports to Poland in 2024, accounted for 71.71 million (US$), while imports from Poland was reported at 48.65(US$ million).

Tourism 

• Poland stands as the one of the top 10 source markets for tourism to Sri Lanka. There is an increasing trend of tourists from Poland to Sri Lanka, with 49,989 in 2025.

Investment 

• There had not been any significant FDIs from Poland to Sri Lanka.

• Agreement between Sri Lanka and Poland for the Avoidance of Double Taxation and the prevention of Fiscal Evasion with respect to Taxes on income.
• Agreement between Sri Lanka and Poland in Cooperation in the field of Tourism.
• Agreement between Sri Lanka and Poland on Air Transport.
• MoU on the Establishment of Political Consultations Mechanism between the Ministry of foreign Affairs of Sri Lanka and the Ministry of foreign affairs of Poland
• MoU between the Ministry of Sports of Sri Lanka and the Ministry of Sports of Poland in the Field of Sports.
• MoU between the National Chamber of Commerce of Sri Lanka & Polish Chamber of Commerce

• Sri Lanka enjoys friendly bilateral relations with Bulgaria since 1962 and had appointed an Honorary Consul in Sofia. There had been 03 political consultations held since the inception of relations.

Trade Relations 

• Sri Lanka’s exports to Bulgaria include tea, spices apparel and textiles and rubber-based products, while imports from Bulgaria include, carbonates, spice seeds and dried vegetables.
• Sri Lanka also utilizes the Generalized System of Preferences (GSP)Scheme to export products to the European Union, including Bulgaria.
• As per the latest available statistics, for the year 2024, Sri Lanka’s exports to Bulgaria are 6.71 million (US$), while imports from Bulgaria was recorded at 7.80 million (US$).

Tourism 

• As per tourism statistics, tourists from Bulgaria are annually increasing and stands at 4,262 in 2025.

Investment 

• As of 2024, there are investments from Bulgaria in 02 boutique villa projects to the approximate value of 1.6 million (US$).

• Agreement between Sri Lanka and Poland for the Avoidance of Double Taxation and the prevention of Fiscal Evasion with respect to Taxes on income.
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• Agreement between Sri Lanka and Poland in Cooperation in the field of Tourism.
• Agreement between Sri Lanka and Poland on Air Transport.
• MoU on the Establishment of Political Consultations Mechanism between the Ministry of foreign Affairs of Sri Lanka and the Ministry of foreign affairs of Poland
• MoU between the Ministry of Sports of Sri Lanka and the Ministry of Sports of Poland in the Field of Sports.
• MoU between the National Chamber of Commerce of Sri Lanka & Polish Chamber of Commerce