By: Staff Writer
May 15, Colombo (LNW): Sri Lanka is intensifying efforts to secure deeper economic ties with the United Arab Emirates as the Government seeks new foreign investments and export markets to stabilise the country’s fragile post-crisis economy. High-level discussions held this week between Sri Lankan and UAE officials have revealed ambitious plans involving ports, aviation, maritime connectivity and a proposed bilateral economic agreement that could redefine trade relations between the two nations.
Trade Minister Wasantha Samarasinghe and UAE Ambassador Khaled Nasser Al Ameri discussed expanding cooperation at a time when Sri Lanka is under pressure to accelerate economic reforms, attract foreign direct investment and improve foreign currency earnings following years of financial instability.
Current bilateral trade between Sri Lanka and the UAE is estimated at approximately US$ 1.5 billion annually, making the UAE one of Colombo’s most important trading partners in the Middle East. The UAE remains Sri Lanka’s seventh-largest export destination while also ranking as the country’s third-largest import source.
Economic analysts say the relationship has evolved rapidly over the past decade, with the UAE increasingly emerging as a gateway for Sri Lankan exports entering Gulf and African markets. Sri Lankan tea, apparel, spices and precious stones continue to dominate exports to the region, while fuel, machinery and consumer goods form the bulk of imports from the UAE.
A major focus of the latest discussions was the proposed Comprehensive Economic Partnership Agreement (CEPA), which both countries hope will strengthen long-term commercial cooperation. If finalised, the agreement could lower tariffs, simplify customs procedures and create improved opportunities for cross-border investments.
Trade experts argue that Sri Lanka urgently needs expanded trade partnerships to revive industrial production and improve export competitiveness. The Government is particularly interested in leveraging the UAE’s position as a major global logistics and financial centre to attract new investors into Sri Lanka’s infrastructure and services sectors.
The UAE delegation also expressed strong interest in investment opportunities linked to the Port of Colombo and the Port of Trincomalee. Officials believe both ports could play a central role in transforming Sri Lanka into a regional maritime and logistics hub connecting Asia, the Middle East and Africa.
The Port of Colombo remains strategically important because of its location along key East-West shipping routes. Meanwhile, Trincomalee’s natural deep-water harbour has increasingly attracted attention from foreign investors seeking energy storage, industrial and shipping-related opportunities.
Another important area discussed was aviation cooperation. UAE officials reportedly explored possibilities for expanding technical partnerships with SriLankan Airlines, especially in aircraft maintenance and engineering services. Aviation industry specialists say partnerships with Gulf aviation operators could modernise Sri Lanka’s aviation infrastructure and improve regional competitiveness.
Observers note that Gulf countries, particularly the UAE, have become increasingly influential investors across South Asia, focusing heavily on ports, logistics, tourism and energy infrastructure.
While the Government views stronger UAE relations as a pathway toward economic recovery, policy analysts stress the importance of ensuring investment agreements remain transparent and financially sustainable.
With Sri Lanka continuing negotiations with international lenders and pursuing economic restructuring, closer trade and investment ties with the UAE could become a critical pillar in the country’s broader recovery strategy.