LAHORE: Historic economic ties between Pakistan and Sri Lanka are set to touch new heights. This was stated by the High Commissioner of Sri Lanka to Pakistan, Rear Admiral Fred Senevirathne (retd) while speaking at the Lahore Chamber of Commerce and Industry.
LCCI President Mian Abuzar Shad, Honorary Consul of Sri Lanka Yasin Joyia and LCCI Executive Committee Members Khurram Lodhi and Karamat Ali Awan also spoke on the occasion.
The High Commissioner said that Sri Lanka had faced significant challenges between 2019 and 2023 but has now returned to a path of stability and progress. He said that the current government of Sri Lanka has effectively addressed issues such as poor governance, economic mismanagement and corruption. Thanks to the visionary leadership of our new President, the country’s economic and political landscape has stabilized.
Highlighting the country’s improving economic indicators, he said that Sri Lanka’s foreign exchange reserves, currency and tourism sector are now stable. He said that key ports, including Colombo, Hambantota, Galle and Trincomalee, are among the busiest in the region. Sri Lanka possesses a skilled workforce and is well-connected to the world through robust international transportation networks. The High Commissioner said that 12 Export Processing Zones (EPZs) are currently operational under the Board of Investment, offering vast opportunities for foreign investors. He invited Pakistani businesses to explore joint ventures and partnerships with their Sri Lankan counterparts to strengthen economic linkages further.
Sri Lankan High Commissioner also gave a detailed presentation on the economy of Sri Lanka, highlighting key reforms, growth indicators and priority sectors where enhanced bilateral collaboration could deliver mutual benefits.
Speaking on the occasion, LCCI President Mian Abuzar Shad said that both the countries have enjoyed strong diplomatic relations since 1948. Both are active members of SAARC and the Commonwealth of Nations, yet the full potential of their trade partnership remains largely untapped. Despite the excellent diplomatic and historical ties, bilateral trade has struggled to cross the USD 500 million marks in recent years. He said that the trade volume reached USD 451 million in 2023-24 but declined slightly to USD 436 million in 2024-25. During this period, Pakistan’s exports to Sri Lanka stood at USD 377 million, while imports were around USD 60 million.
The LCCI President added that Pakistan’s exports to Sri Lanka primarily include woven cotton fabrics, cement, potatoes, pharmaceuticals and maize, while imports mainly consist of vegetables, fibreboard, natural rubber and copra.
Mian Abuzar said that despite identifying several areas of cooperation such as tourism, education, defence and information technology during previous high-level meetings, significant efforts are still needed to fully realize this potential. He said that although a Free Trade Agreement (FTA) has been in place since 2005, bilateral trade remains below expectations. Sri Lanka’s global exports stand at around USD 12 billion, while imports exceed USD 18 billion. Pakistan must explore avenues to increase its share in Sri Lanka’s global trade. He said that Pakistan could substantially expand its exports in value-added textiles, pharmaceuticals, surgical instruments, rice, cement, halal food and IT services. He also highlighted key import areas for Sri Lanka, including knitted fabrics (USD 1.4 billion), medicaments (USD 391 million), sugar (USD 372 million), wheat (USD 295 million), woven fabrics (USD 230 million), vegetables (USD 195 million) and cement (USD 159 million), all of which Pakistan could supply at competitive rates. This would help raise bilateral trade to at least USD 2 billion.
To achieve this goal, Mian Abuzar called for stronger institutional collaboration between major chambers of commerce in both countries. The offices of our respective High Commissioners can play a pivotal role in facilitating trade promotion. Exchange of business delegations and the organization of single-country exhibitions would also significantly contribute to expanding bilateral trade.
Copyright Business Recorder, 2025
