To promote economic growth, Sri Lanka is pursuing free trade agreements with India

In order to promote economic growth, Sri Lanka wants to complete free trade agreements (FTAs) with China, Vietnam, Malaysia, India, and Indonesia by 2024

By the end of 2024, Sri Lanka intends to create free trade agreements (FTAs) with a number of nations, including India, in an effort to boost growth and address its economic issues. The government’s plan for resolving the country’s economic problems was presented by Foreign Minister Ali Sabry.

FTAs (Free Trade Agreements) with Important Partners

By the end of 2024, Sri Lanka hopes to have completed free trade agreements (FTAs) with China, Indonesia, Malaysia, Vietnam, and India.

By opening up new markets for Sri Lankan companies, these accords should immediately support economic expansion.

Restarting Discussions with India

After a break since 2018, discussions on the Economic and Technology Cooperation Agreement between India and Sri Lanka were once again held in Colombo in October of last year.

Opposition from trade unions and politicians hampered previous deals.

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Thailand’s recent free trade agreement

With the recent FTA that Sri Lanka and Thailand inked, they now have access to a USD 2.2 billion market.

The economic prospects of Sri Lanka have advanced significantly with this deal.

Export Obstacles and Forgotten Opportunities

Exports from Sri Lanka, which formerly made up a sizeable portion of the country’s GDP, have decreased to 15% from 30% in the 1990s.

One major barrier has been limited market access, as Sri Lanka, unlike its neighbors Bangladesh and Vietnam, has not been able to take advantage of international markets.

Economic Adjustments and IMF Assistance

President Ranil Wickremesinghe succeeded Gotabaya Rajapaksa after Sri Lanka experienced its first-ever sovereign default in April 2022.

In an effort to stabilize the economy, the government enacted unpopular economic measures in addition to an IMF bailout.