Sri Lanka pushes to deepen trade ties with India through revised pact

Sri Lanka has moved to reinvigorate its free trade partnership with India, with officials indicating plans to review and enhance the existing agreement to better serve both nations' commercial interests.

The initiative reflects Colombo's broader strategy to leverage trade relationships with major regional partners as the island nation works to stabilise its economic recovery. Strengthening the free trade framework with India could provide improved market access for Sri Lankan exporters and facilitate deeper integration into regional supply chains.

India remains one of Sri Lanka's most significant trading partners, with bilateral commerce covering a wide spectrum of sectors from textiles and agricultural products to manufacturing and services. Enhanced provisions under a revised agreement could address emerging trade barriers and create new opportunities for businesses in both countries.

The move comes as Sri Lanka continues economic stabilisation efforts and seeks to diversify revenue streams through expanded commercial relationships. Officials have indicated that negotiations on deepening the trade pact would focus on areas of mutual benefit and competitiveness for both nations' industries.

Formalising improvements to the trade agreement could signal growing confidence in bilateral economic ties and provide a framework for sustained commercial growth between the neighbouring countries.