Sri Lanka, Thailand eye FTA-led trade boost as Business Council marks 25 years
Daily FT: Sri Lanka and Thailand are looking to leverage the recently concluded Sri Lanka–Thailand Free Trade Agreement (SLTFTA), stronger business-to-business engagement, and their strategic positions as gateways to South and Southeast Asia to significantly deepen bilateral trade and investment ties, speakers said at the Silver Jubilee celebrations of the Sri Lanka-Thailand Business Council.
Marking its 25th anniversary, the Council brought together government officials, diplomats and business leaders who highlighted both the progress achieved over the past quarter century and the untapped opportunities that remain between the two economies.
Thailand’s Ambassador to Sri Lanka Paitoon Mahapannaporn, noted that bilateral trade has gained considerable momentum in recent years, with trade volumes increasing by about 48%, while investment links between the two countries have become well established.
He pointed to Thailand’s largest investment in Sri Lanka through INSEE Cement, part of Siam City Cement, and Sri Lanka’s largest investment in Thailand by Hayleys Group, as examples of the growing economic relationship.
However, Mahapannaporn argued that one of the key barriers to stronger economic expansion remains the limited familiarity between the two business communities.
“The challenge that hinders our economic expansion is that our business sectors know each other too little, leading to lack of trust and confidence,” he said, stressing that direct engagement through trade missions, business forums and site visits is essential to building stronger commercial relationships.
To address this gap, the Royal Thai Embassy facilitated a 27-member Thai business delegation comprising representatives from the Thai Chamber of Commerce and Industry and the Board of Trade of Thailand to visit Sri Lanka for business forums, matchmaking sessions and corporate site visits.
The Ambassador identified the implementation of the Sri Lanka-Thailand Free Trade Agreement as a major catalyst for future growth, saying it would help boost trade and investment while integrating both countries more deeply into regional supply chains.
Foreign Employment and Tourism Minister Vijitha Herath said the Government is committed to expanding the long-standing economic, cultural and historical relationship between the two countries in line with emerging global trends.
He highlighted opportunities in trade, tourism, transport and logistics, technology and sustainable development, emphasising that continued cooperation and mutual trust would be critical in unlocking future growth.
“The steadily growing import and export trade volumes between the two countries year-after-year are a clear indicator of the progress achieved jointly,” Herath said.
The Minister also praised the Sri Lanka–Thailand Business Council for serving as a practical bridge between entrepreneurs and businesses in both countries, helping create opportunities that previously did not exist. Business leaders echoed the view that the next phase of bilateral cooperation should extend beyond traditional trade sectors.
OSL take:
Sri Lanka and Thailand are entering a new phase of economic cooperation, strengthened by the SLTFTA, expanded business-to-business engagement, and their shared role as strategic gateways to South and Southeast Asia. This evolving partnership is expected to unlock fresh momentum in bilateral trade, investment flows, and regional market access. For Thai businesses/investors, Sri Lanka presents an increasingly attractive platform for expansion into South Asia. The SLTFTA is expected to reduce trade barriers and improve competitiveness for Thai exports in sectors such as agro-processing, automotive components, electronics, consumer goods, and tourism-related services. At the same time, Thai investors are well positioned to participate in Sri Lanka’s ongoing infrastructure development, hospitality expansion, and growing retail and wellness sectors, where Thai brands already have strong regional recognition. Sri Lankan businesses/investors could also explore the benefits of SLTFTA. Beyond bilateral ties, Sri Lanka is also opening broader opportunities for other foreign businesses/investors. Its location along major Indian Ocean shipping routes provides natural advantages as a logistics and re-export hub linking India, the Middle East, and Southeast Asia. Combined with improving trade facilitation, a recovering macroeconomic environment, and sectoral reforms, the country is gradually positioning itself as a competitive base for regional manufacturing, services outsourcing, and light industrial investment. Emerging sectors such as ICT, renewable energy, tourism, and export-oriented manufacturing are drawing growing interest from international capital. In particular, joint ventures and public-private partnerships (PPPs) are gaining traction as Sri Lanka seeks to accelerate technology transfer and upgrade industrial capacity. As both Sri Lanka and Thailand deepen economic cooperation under the SLTFTA framework, the broader investment landscape is expanding beyond traditional trade into long-term strategic collaboration – creating new entry points not only for Thai firms but also for global investors looking to establish a foothold in South and Southeast Asia.
| Article Code : | VBS/AT/20260707Z_2 |