Sri Lanka, Thailand urge stronger business ties as both countries seek to deepen economic cooperation by encouraging greater engagement between their private sectors, with officials stressing that stronger business relationships and mutual trust are essential to unlocking the full potential of bilateral trade and investment.
Sri Lanka, Thailand urge stronger business ties to expand trade and investment
Speaking at the 25th anniversary celebrations of the Sri Lanka–Thailand Business Council in Colombo last week, Thai Ambassador to Sri Lanka Paitoon Mahapannaporn and Sri Lankan Foreign Minister Vijitha Herath highlighted the progress achieved in bilateral economic relations while acknowledging that limited familiarity between business communities remains a key challenge.
Although commercial ties have expanded steadily in recent years, both officials noted that direct interaction between entrepreneurs and investors from the two countries remains relatively limited. They argued that increasing face-to-face engagement would help build confidence, strengthen partnerships and create new opportunities for businesses seeking to expand across regional markets.
The latest figures underline the growing importance of Sri Lanka Thailand trade. Total bilateral trade between the two countries has reached US$358.05 million, equivalent to approximately Rs.107.4 billion, representing an increase of around 48 percent compared with previous levels.
Ambassador Mahapannaporn said investment relations between Sri Lanka and Thailand have also become increasingly well established. Among the largest cross-border investors, Siam City Cement (INSEE Cement) remains the biggest Thai investment in Sri Lanka, while the Hayleys Group has emerged as the largest Sri Lankan investor operating in Thailand.
Despite these encouraging economic indicators, the ambassador observed that businesses in both countries still know relatively little about one another. This lack of familiarity, he said, can create hesitation during commercial negotiations and slow the development of new partnerships.
He stressed that encouraging entrepreneurs, investors and business leaders to meet regularly, exchange ideas and gain first-hand knowledge of each other’s markets is critical to building long-term trust and confidence.
Foreign Minister Herath echoed those sentiments, describing trust as the cornerstone of successful economic cooperation. Reflecting on the Sri Lanka–Thailand Business Council’s 25-year journey, he said the milestone represented not only longevity but also enduring partnerships built on consistent engagement and a shared commitment to mutual prosperity.
Herath noted that both countries possess significant opportunities to expand cooperation across several sectors, including trade, tourism, logistics, technology and sustainable development. He added that the geopolitical and commercial potential available to Sri Lanka and Thailand remains substantial and can be realised through closer collaboration between governments and the private sector.
The push to strengthen business relations comes at a time when both countries are benefiting from new policy frameworks designed to facilitate commerce. The Thailand-Sri Lanka Free Trade Agreement, which entered into force in January 2025, provides a comprehensive framework covering trade in goods, services and investment. The agreement is expected to improve market access, enhance competitiveness and better integrate both economies into regional supply chains.
The Thailand-Sri Lanka Free Trade Agreement is also expected to encourage greater investment flows by reducing trade barriers and providing businesses with a more predictable operating environment.
Travel between the two countries has also become considerably easier. Since 15 July 2024, Thailand has offered visa-free entry for Sri Lankan passport holders travelling for tourism or business purposes for up to 60 days. Officials believe the policy has removed an important barrier for entrepreneurs seeking to explore investment opportunities and develop commercial partnerships.
To further promote direct engagement, the Royal Thai Embassy recently facilitated a visit by 27 business representatives from the Thai Chamber of Commerce and Industry and the Board of Trade of Thailand. During their visit, delegates participated in business matching programmes and site visits across Sri Lanka, allowing them to gain practical insights into local industries and investment opportunities.
With Sri Lanka returning to positive economic growth following its recent recovery, officials remain optimistic that stronger business engagement will translate into increased trade, investment and long-term partnerships. As Sri Lanka, Thailand urge stronger business ties, both governments are looking beyond traditional diplomatic relations and placing greater emphasis on private-sector collaboration as a driver of sustainable economic growth and regional integration.