In a significant diplomatic development, Sri Lanka and the United States have agreed to accelerate discussions toward finalizing a bilateral trade agreement, with hopes of concluding negotiations in the shortest possible time. This initiative marks a critical milestone for Sri Lanka, which is seeking deeper integration into the global economy and asserting its competitiveness in South Asia.
The breakthrough comes after a high-level meeting between a Sri Lankan delegation and U.S. Trade Representative (USTR) Ambassador Jamieson Greer on April 22 in Washington, D.C. The Sri Lankan side provided a comprehensive update on the economic challenges the country has endured in recent years—including pandemic-driven disruptions and mounting debt—and outlined a series of reform measures undertaken to drive recovery.
The Government of Sri Lanka emphasized its commitment to reducing the trade deficit with the United States and dismantling tariff and non-tariff barriers, positioning itself as a reliable partner for fair and reciprocal trade. Ambassador Greer reportedly responded positively, welcoming Sri Lanka’s written proposals and signaling optimism that a mutually beneficial agreement could soon be realized.
Further discussions took place with USTR officials Brendan Lynch, Assistant Trade Representative for South and Central Asia, and Emily Ashby, Director for South Asia, who are directly responsible for regional policy coordination. Both parties reaffirmed their desire to expedite negotiations, signaling a mutual recognition of the agreement’s strategic and economic significance.
This progress is being hailed by Colombo as a diplomatic win, particularly in light of the broader South Asian context. Unlike regional peers such as Bangladesh and Pakistan—whose trade talks with Washington have either stagnated or become entangled in political complexities—Sri Lanka is emerging as a proactive player, leveraging its relatively liberal trade regime and geopolitical relevance in the Indo-Pacific.
Moreover, Sri Lankan President Anura Kumara Dissanayake has reportedly communicated directly with the U.S. Trade Office, underscoring the importance Colombo places on this agreement. The correspondence is said to include specific commitments on structural economic reforms, enhanced regulatory transparency, and support for U.S. investments in Sri Lanka.
Analysts note that, if successful, the deal could serve as a model for smaller South Asian economies striving to diversify export markets beyond regional partners like India and China. It may also ease the impact of the loss of other preferential trade facilities—such as the potential expiry of the EU’s GSP+ benefits—by securing long-term access to one of the world’s largest consumer markets.
As the talks continue, the government appears keen to fast-track the deal not only to attract U.S. capital and technology, but also to reaffirm its international credibility in a region where economic diplomacy is increasingly tied to strategic partnerships.
