News
Sri Lanka–Thailand Free Trade Agreement at last sees the light of day
The Sri Lanka–Thailand Free Trade Agreement (SLTFTA), signed in 2024 and awaiting implementation, will serve as a key catalyst for strengthening trade, investment and supply-chain resilience between the two countries amid growing global economic uncertainties, Thailand’s Ambassador to Sri Lanka, Paitoon Mahapannaporn, said.
Addressing the Thailand–Sri Lanka Business Forum: Trade, Investment and Beyond in Colombo on June 18, Ambassador Mahapannaporn noted that bilateral trade had reached USD 649 million in 2025, marking a 48 per cent increase over the previous year.
He said stronger partnerships and diversified supply chains had become increasingly important in the face of geopolitical crises affecting global business and investor confidence. The SLTFTA would help boost bilateral trade, reduce tariffs, open new markets and improve access to global supply chains for both countries, he added.
The forum was organised by the Royal Thai Embassy in collaboration with the Sri Lanka–Thailand Business Council and the Sri Lanka–Greater Mekong Business Council and brought together senior government officials, diplomats, business leaders and industry experts from both nations.
President of the Sri Lanka–Thailand Business Council, Rizan Nazeer, highlighted the importance of building resilient cross-border partnerships by combining Thailand’s advanced infrastructure, capital strength and industrial expertise with Sri Lanka’s skilled and cost-effective workforce.
President of the Sri Lanka–Greater Mekong Business Council, Nimal Ratnayake, said the forum was not merely about trade opportunities but also about fostering trust, knowledge-sharing and long-term partnerships that would contribute to sustainable growth in both countries.
Delivering a presentation on trade and FTA opportunities, Secretary to the Ministry of Trade, Commerce, Food Security and Co-operative Development, K. A. Vimalenthirarajah, stressed the need for predictable and effective implementation of the agreement. He said sectors such as logistics, packaging, research and development, food processing, information technology, minerals and technology-driven investments stood to benefit significantly.
Senior Deputy Director of Customs, Compliance and Facilitation Directorate of Sri Lanka Customs, Chamila Prasantha Bopage, outlined customs procedures and regulatory requirements, emphasising the importance of balancing trade facilitation with regulatory oversight.
Providing a Thai business perspective, Dr. Visit Limlurcha, President of the Thai Future Food Trade Association and Vice Chairman of the Thai Chamber of Commerce and Board of Trade of Thailand, described Sri Lanka as a strategic gateway to South Asia and the Middle East. He identified food and agriculture, healthcare, IT, electronics, machinery, construction, tourism, logistics and textiles among sectors with strong potential for bilateral collaboration.
Meanwhile, Deputy Dean of the Graduate School of the University of the Thai Chamber of Commerce, Dr. Phusit Wonglorsaichon said competitiveness in the modern economy depended on digital platforms, effective use of FTAs, research and development, technology adoption and innovation.
Director General of the Board of Investment, Renuka Weerakone, presented Sri Lanka as an increasingly attractive destination for foreign direct investment, noting that 15 pioneering Thai investors were already operating in the country. She highlighted Sri Lanka’s strategic location, expanding logistics infrastructure and investor-friendly policies, including provisions allowing 100 per cent foreign ownership in most sectors.
The forum concluded with a business-matching session involving 27 delegates from 17 Thai companies and more than 100 Sri Lankan counterparts, who explored opportunities for collaboration across food and agriculture, health and personal care, IT and construction, hospitality and logistics, and textiles and household products. Officials said the engagements reflected the growing momentum towards deeper economic integration between Sri Lanka and Thailand under the proposed FTA framework.
By Shamindra Ferdinando
Iran has sought the Indian intervention, at the highest level, to provide lifesaving support to the crews of empty Iranian vessels stranded just outside Sri Lanka’s 12-nautical mile territorial waters off Galle.
Sources familiar with the issue said that Iran had brought the developing situation to the attention of New Delhi as the crews of almost 20 vessels, included Indian nationals. Sources stressed that the group of vessels that unloaded crude oil a couple of months back were now stranded within Sri Lanka’s Exclusive Economic Zone (EEZ).
The US Navy torpedoed an unarmed Iran frigate, returning from India, on 04 March, 2026, about 19 nautical miles off the Galle coast. The unprovoked attack killed nearly 100 Iranians.
The Iranian Embassy in Colombo has inquired from the Indian High Commission of their response to the situation, sources said. The US has issued a global warning against providing food, water, medicine and other services to the Iranian vessels. The outcome of Iran-India talks on the issue at hand was not known, though sources asserted India may not throw its weight behind Iranian efforts to address the issue.
Responding to The Island queries, sources said both Sri Lanka and India were in a dilemma due to the US warning. India couldn’t ignore the plight of the Indian crew members and the Iranian vessels in its backyard.
The Sri Lankan government remains tight-lipped about the vessels stranded in its EEZ. Our efforts to elicit a response from relevant authorities were in vain. In addition to Indians, there are Bangladeshis among the crew members. Iran has explicitly stated the responsibilities of the countries concerned to provide assistance in terms of international law.
The Iranian position was articulated by its Ambassador to Sri Lanka, Dr.Alireza Delkhosh, recently. In a special statement, Ambassador Delkhosh emphasised that in terms of the Convention on the Law of the Sea (Article 98) as well as SOLAS and SAR
Conventions, Sri Lanka couldn’t refrain from providing the needs of the Iranian vessels stranded in its EEZ.
SLMC leader Rauff Hakeem lambasted the NPP government in Parliament for failing to provide assistance to the Iranian ships. The former Minister alleged that the government was simply carrying out dictates of the US. He strongly criticised the way Foreign Minister Vijitha Herath was handling the issue.
MP Namal Rajapaksa, who is in remand custody over the controversial Airbus deal, was further remanded until October 27 by the Colombo Magistrate’s Court yesterday (13).
Colombo Chief Magistrate Asanga S. Bodaragama made the order after considering submissions by officers of the Commission to Investigate Allegations of Bribery or Corruption and lawyers representing Rajapaksa.
Sri Lanka’s economy is expected to sustain its recovery over the next two years, although growth is projected to moderate amid mounting global uncertainties, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.
In its World Economic Outlook 2026: Resilience Under Strain, Urgent Choices, the IMF projects Sri Lanka’s economy to expand by 4% in 2026, slowing to 3.7% in 2027, following estimated growth of 5% in 2025.
Inflation, meanwhile, is forecast to rise to 5.3% in 2026 and 5.4% in 2027, reversing the average deflation rate of 0.5% recorded in 2025.
Unemployment is expected to remain steady at 3.9% throughout the forecast period.
The projections come amid growing pressure on the global economy from the ongoing conflict in the Middle East, elevated energy prices, geopolitical tensions and trade disruptions.
Sri Lanka’s external position is also expected to weaken, with the current account balance projected to shift from a surplus of 1.6% of gross domestic product (GDP) in 2025 to deficits of 0.5% in 2026 and 0.3% in 2027.
The IMF’s outlook points to continued economic expansion in Sri Lanka, but with slower growth, rising inflation and a narrowing external surplus giving way to current account deficits over the forecast period.
Heavy showers above 100 mm are likely at some places in the Western, Sabaragamuwa, Southern, Central, and North-western provinces and in Anuradhapura district.
Sri Lanka, India caught in US-Iran ship crisis
Namal further remanded
IMF projects Lankan economic growth to moderate amidst mounting global uncertainties
Major Gen Pushpakumara assumes command of 56 Infantry Division
Dickwella axed, Bandara earns maiden Test call up
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Features6 days agoThe Sri Lankan who made Scottish history
-
Sports6 days agoNissanka absence opens door for Sri Lanka’s young guns
-
News5 days agoNDB fraud Rs 60mn more than reported
-
News5 days agoRemoving monk’s robes matter for Sangha to decide: Mahanayake Theras
-
News6 days agoShiranthi R remanded until 13 Oct.
-
Features6 days agoFuture of Sri Lanka’s state university system: Should it be shut down and reopened?
-
News3 days agoSri Lanka escalates anti-graft drive with Shiranthi’s jailing
-
News4 days agoNPP govt. reminded of its responsibilities as US warship leaves Colombo