By:Staff Writer
September 15, Colombo (LNW): Sri Lanka and the Philippines have signaled their intent to push relations into a new phase, with trade, investment, and labour mobility at the heart of fresh discussions. The two nations concluded the third round of political consultations in Colombo last week, setting the stage for deeper engagement ahead of the 65th anniversary of their diplomatic ties in 2026.
At present, bilateral trade remains modest but fast-growing. In 2024, Sri Lanka’s exports to the Philippines reached around US$16.5 million, while imports stood at nearly US$57 million, resulting in a sizable trade deficit. Yet both sides recorded significant year-on-year growth—Sri Lanka’s exports rose by 14.4%, while imports from the Philippines surged 146.8%—suggesting an untapped but rapidly expanding partnership.
Foreign Secretary Aruni Ranaraja urged Manila to consider reopening its resident mission in Colombo, while also highlighting Sri Lanka’s interest in working with the Philippines as it prepares to assume the ASEAN chairmanship in 2026. The Philippines’ growing influence in Southeast Asia, coupled with Sri Lanka’s strategic location in the Indian Ocean, gives both sides an incentive to strengthen commercial and political ties.
Agriculture and plantations emerged as top priorities. Colombo hopes to benefit from Philippine expertise in technology transfer, irrigation, food security, and rice research, particularly to enhance its coconut and plantation industries. Fisheries and aquaculture were also identified for deeper engagement, with Sri Lanka keen to learn from Manila’s advanced milkfish breeding technology, which could be adapted to boost local aquaculture output.
Labour cooperation was another key theme. Sri Lanka recognized the Philippines’ global leadership in migration governance and pressed for the early finalization of a draft Memorandum of Understanding (MoU) on labour. The discussions underscored areas such as regulated recruitment, migrant welfare, and pre-departure training issues of critical importance to Sri Lanka’s large overseas workforce.
On trade facilitation, both nations agreed to foster institutional linkages between the Sri Lanka Export Development Board and the Philippines’ Center for International Trade Expositions and Missions (CITEM). Such cooperation could enable small and medium enterprises (SMEs) to access new markets through joint trade fairs, exhibitions, and e-commerce platforms.
Despite the momentum, challenges persist. The wide trade imbalance favors the Philippines, and Sri Lankan exporters still face barriers in awareness, logistics, and product diversification. Non-tariff barriers and regulatory alignment remain additional hurdles. Without sustained follow-through, MoUs risk becoming symbolic rather than transformative.
Yet opportunities abound. Sri Lanka could expand value-added exports in tea, coconut products, spices, and rubber, while drawing Filipino investment in food processing, cold chains, and logistics. Both countries could also explore joint ventures in ICT, tourism, and higher education. With the Philippines assuming ASEAN leadership, Colombo may find openings to integrate with regional supply chains and pursue broader Indo-Pacific trade linkages.
If the plans outlined in Colombo are fully implemented, by 2026 the two countries could see a doubling of trade volumes, more balanced exchanges, and strengthened cooperation in labour, agriculture, and aquaculture. The resumption of a Philippine diplomatic mission in Colombo would further cement this partnership.
For now, Sri Lanka and the Philippines are moving from goodwill to groundwork. The challenge is to turn promising dialogue into tangible results transforming a modest relationship into a robust economic bridge across the Indian and Pacific Oceans.
