Sri Lanka and Japan are set to formalize an economic policy dialogue through a memorandum of understanding (MoU), aiming to boost trade, investment, and integration of Sri Lanka into the South Asian economic corridor. The signing is scheduled for 16 February 2026.
Strategic MoU aims to strengthen trade and investment between Sri Lanka and Japan
Sri Lanka and Japan are taking a significant step to strengthen bilateral economic cooperation. The two countries will sign a memorandum of understanding (MoU) on economic policy dialogue, according to Finance Minister Nalinda Jayatissa.
The discussions focus on positioning Sri Lanka as a strategic export-oriented economic corridor in South Asia. By leveraging its geographic location and trade potential, Sri Lanka aims to enhance connectivity with regional markets and attract greater foreign investment.
“Cabinet approved the proposal to enter into a Memorandum of Understanding on Economic Policy Dialogue as part of the efforts to promote and strengthen trade, investment and economic development,” Minister Jayatissa told reporters.
The MoU is expected to formalize a structured framework for regular economic consultations, allowing both governments to coordinate policies, identify trade opportunities, and explore investment projects. It will also provide a platform to discuss macroeconomic policies, market reforms, and sectoral strategies that can accelerate bilateral economic growth.
The signing is scheduled for 16 February 2026 and is seen as a continuation of ongoing dialogues aimed at deepening Japan-Sri Lanka economic ties. Analysts note that Japan’s support could facilitate technology transfer, infrastructure development, and export diversification in Sri Lanka.
This partnership aligns with Sri Lanka’s broader economic vision of becoming a regional trade hub and a strategic gateway for South Asian markets. Integrating Sri Lanka’s economy more closely with Japan could provide access to investment capital, technical expertise, and expanded market channels.
Economic experts emphasize that institutionalizing such dialogue is crucial for long-term policy coordination. The MoU will allow both countries to engage in regular reviews of trade regulations, investment frameworks, and collaborative initiatives to reduce barriers for businesses.