Sri Lanka aims to enhance trade relations with Pakistan.
Sri Lanka has extended an invitation to Pakistani enterprises to engage in the Economic and Investment Summit 2025 in Colombo, as it seeks to enhance trade and investment relations with Pakistan in various sectors, stated Sri Lanka’s consul general during a visit to the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday.
Pakistan and Sri Lanka preserve enduring diplomatic and defense relations and have implemented a Free Trade Agreement (FTA) since 2005. Nevertheless, bilateral commerce has remained limited and focused on a narrow range of commodities.
Pakistan mostly exports textiles, cement, pharmaceuticals, grains, and cereals to Sri Lanka, whereas Sri Lanka exports tea, coconut products, medium-density fiberboards, rubber products, and surgical items to Pakistan.
Business councils on both sides have consistently contended that the commercial partnership fails to embody its potential, especially in value-added sectors, services, and tourism. The recent economic stabilization initiative in Sri Lanka and Pakistan’s necessity to diversify its export markets have rekindled interest in enhancing trade.
During a meeting at the Karachi Chamber of Commerce & Industry (KCCI), Consul General PK Sanjeewa Pattiwila stated that both parties should “look beyond the current trade basket” and explore new sectors.
He stated, as per a KCCI release, that the private sectors of Sri Lanka and Pakistan may notably excel in agriculture-based industries, seafood, spices, animal feed, value-added seafood, construction, and information technology, highlighting that Pakistan presently maintains a trade surplus.
He stated that bilateral relations were influenced not only by current diplomacy but also by mutual cultural and historical ties.
Pattiwila stated that for more than seventy years, the relationship between Sri Lanka and Pakistan has been characterized by mutual respect, profound understanding, and exceptional cooperation. He also noted that the Economic and Investment Summit 2025, scheduled for December 2–3 in Colombo, will highlight Sri Lanka’s investment agenda and sector reforms.
In a video conference, Chairman of the Businessmen Group (BMG) Zubair Motiwala stated that the current trade volume “does not accurately represent the true potential” of the relationship.
“There exists significant potential for augmenting bilateral trade, as both nations possess a plethora of products to exchange,” he stated.
The true potential of bilateral trade between Pakistan and Sri Lanka is US$5 billion; however, our existing estimates are only in the millions.
He observed that Ceylon Tea formerly maintained a robust market presence in Pakistan before being supplanted by Kenyan tea and stated that Sri Lanka had “not exerted significant efforts” to reclaim its market dominance.
KCCI President Muhammad Rehan Hanif stated that Karachi’s business sector is receptive to enhanced partnership in textiles, pharmaceuticals, agriculture, logistics, tourism, ICT, and services.