May 27, Colombo (LNW): As Sri Lanka continues to navigate its fragile path to economic stability, a high-level diplomatic visit from New Zealand has injected fresh momentum into bilateral relations.
Winston Peters, New Zealand’s Deputy Prime Minister and Minister of Foreign Affairs, arrived in Colombo this week for a five-day official visit aimed at strengthening cooperation across a range of sectors, including trade, agriculture, tourism, and education.
During a formal meeting held in the capital, Peters engaged in discussions with Sri Lanka’s Foreign Minister, Vijitha Herath. The two sides reportedly explored a roadmap for enhanced collaboration between the two countries, focusing on both immediate and long-term partnerships.
Particular attention was given to trade diversification, with a strong emphasis on boosting Sri Lanka’s capacity to access international markets and reducing bureaucratic obstacles that hinder trade at entry points.
The talks took place against the backdrop of Sri Lanka’s ongoing efforts to recover from the devastating economic collapse it suffered in recent years—a crisis driven by unsustainable debt levels, the impact of the COVID-19 pandemic, and the collapse of key revenue streams such as tourism and foreign remittances.
The country defaulted on its debt in April 2022 and has since entered into a bailout agreement with the International Monetary Fund. Under this deal, Colombo has committed to a series of structural reforms and is currently seeking substantial debt relief totalling approximately $17 billion.
Sri Lanka’s agricultural sector was a focal point during the bilateral talks, with both parties expressing a desire to bolster collaboration in dairy production and food processing.
Minister Herath noted that New Zealand’s involvement in modernising Sri Lanka’s dairy industry had already contributed to positive change in rural communities, although domestic production continues to fall short of national demand.
Currently, Sri Lanka still relies heavily on imported dairy goods, a significant portion of which originate from New Zealand.
Trade figures from 2024 reveal the asymmetry in economic exchanges between the two nations. New Zealand’s exports to Sri Lanka amounted to around $335 million, predominantly in dairy, whilst Sri Lanka’s exports to New Zealand were valued at $64 million and included products such as tea, garments, rubber goods and spices.
Both countries expressed a mutual interest in rebalancing this trade relationship by broadening the range of Sri Lankan products entering the New Zealand market.
The two governments also highlighted the growing presence of New Zealand-based enterprises seeking investment opportunities in Sri Lanka. Peters underscored the potential benefits of partnerships in tourism, agriculture, and health services—sectors that could not only attract investment but also generate employment and foreign exchange earnings for Sri Lanka.
