Sri Lanka accelerates UAE trade deal, courts Port City investors

Sri Lanka is moving to expedite negotiations on a comprehensive economic partnership agreement with the UAE, according to government officials familiar with trade discussions. The acceleration of talks comes as authorities simultaneously seek to attract Gulf investment into the strategically important Port City project, a cornerstone of the nation's economic recovery strategy.

The dual initiative reflects Colombo's broader effort to strengthen economic ties with wealthy Gulf nations as it navigates fiscal challenges and seeks foreign direct investment. The Colombo Port City, a major mixed-use development adjacent to the main container terminal, has emerged as a focal point for attracting foreign investors seeking regional commercial and financial hub opportunities.

Government representatives have indicated that concluding the trade agreement with the UAE would provide a framework for increased bilateral commerce and investment flows. Officials view the pact as potentially opening new avenues for Sri Lankan exports while facilitating access to Emirati capital and expertise in port operations and financial services.

The Port City component of the outreach initiative targets Gulf-based investors and sovereign wealth funds, positioning the development as an attractive destination for regional investment given its free trade zone status and modern infrastructure facilities. Successful investment commitments would contribute meaningfully to foreign exchange earnings and employment generation amid ongoing economic stabilization efforts.