Sri Lanka, Thailand urge stronger business ties to overcome ‘unfamiliarity’ to boost trade and investments

Sri Lanka and Thailand are pushing for deeper economic integration, with officials from both nations urging their respective private sectors to bridge the gap of unfamiliarity to build trust and unlock the full potential of bilateral trade and investments.

Speaking at the 25th-anniversary celebrations of the Sri Lanka-Thailand Business Council held in Colombo last week, both Thai Ambassador to Sri Lanka Paitoon Mahapannaporn and Sri Lankan Foreign Minister Vijitha Herath highlighted that while trade ties are strengthening, a lack of direct engagement remains a notable hurdle.

The momentum of trade and investment between the two nations continues to navigate an expanding trajectory, with total bilateral trade volume standing at 358.05 million US dollars, equivalent to approximately Rs. 107.4 billion. “Trade volume has increased about 48 percent,” Ambassador Mahapannaporn noted, pointing out that investment between the two nations has become well established.   

This economic footprint is anchored by major cross-border players, with Siam City Cement, also known as Insee Cement, standing as the largest Thai investor in Sri Lanka, while the Hayleys Group represents the largest Sri Lankan investment in Thailand.

Despite these positive economic indicators, Ambassador Mahapannaporn pointed out that the business sectors of both countries know each other too little, which inadvertently leads to a deficit in trust and confidence. He stressed that allowing business communities to meet, discuss, and gain direct experience of each other’s markets is the key to building this essential confidence and facilitating smoother negotiations.

Echoing the sentiment on the importance of trust, Foreign Minister Herath noted that enduring relationships are built on shared beliefs and consistent engagement. Herath stated that twenty-five years is an important milestone, which speaks not only of endurance but of trust built over time, relationships nurtured with care, and a shared belief in working together for mutual benefit. He further noted that geopolitical and commercial possibilities in trade, tourism, logistics, technology, and sustainable development are both real and within reach.

The push for closer commercial ties comes against the backdrop of significant bilateral policy frameworks designed to facilitate cross-border commerce. The Thailand-Sri Lanka Free Trade Agreement, which entered into force in January 2025, serves as a modern framework covering trade in goods, services, and investment to integrate both nations into wider regional supply chains.

In addition to the free trade pact, travel between the two nations has been significantly eased to encourage face-to-face interaction. Thailand implemented visa-free entry for Sri Lankan passport holders for tourism and business engagements for up to 60 days on July 15, 2024. This policy removes a major logistical barrier for Sri Lankan entrepreneurs looking to explore the Thai market.

To actively foster these vital connections and capitalize on the new frameworks, the Royal Thai Embassy recently facilitated the visit of 27 Thai business representatives from the Thai Chamber of Commerce and Industry and the Board of Trade of Thailand. The delegation participated in dedicated business matching sessions and site visits in Sri Lanka to gain firsthand market experience. With Sri Lanka registering positive GDP growth following its recent economic recovery, officials remain highly optimistic that such targeted engagements will pave the way for a new era of mutually beneficial economic prosperity. (NF)