Sri Lanka Thailand Free Trade Agreement is expected to play a pivotal role in strengthening bilateral trade, investment and business collaboration as both countries seek to leverage their strategic locations as gateways to South and Southeast Asia.
Sri Lanka Thailand Free Trade Agreement drives new investment and business partnerships
The importance of the recently concluded trade pact was highlighted during the Silver Jubilee celebrations of the Sri Lanka–Thailand Business Council, where government leaders, diplomats and business executives reaffirmed their commitment to expanding economic cooperation through stronger private-sector engagement and regional connectivity.
Thailand’s Ambassador to Sri Lanka, Paitoon Mahapannaporn, said bilateral trade has gathered significant momentum in recent years, with trade volumes increasing by approximately 48 percent. Investment ties have also strengthened, with Thailand’s largest investment in Sri Lanka represented by INSEE Cement, part of Siam City Cement, while Hayleys Group remains Sri Lanka’s largest investor in Thailand.
Despite this progress, the Ambassador said greater commercial engagement is needed between businesses in both countries.
He noted that limited familiarity between the Sri Lankan and Thai business communities continues to constrain trade and investment opportunities, stressing that business missions, investment forums and corporate site visits are essential to building trust and long-term partnerships.
To support this objective, the Royal Thai Embassy organised a 27-member delegation comprising representatives from the Thai Chamber of Commerce and Industry and the Board of Trade of Thailand. During their visit to Sri Lanka, delegates participated in business forums, business-to-business matchmaking sessions and corporate visits aimed at identifying new commercial opportunities.
The Ambassador described the Sri Lanka Thailand trade relations as entering a new phase with the implementation of the Free Trade Agreement, which is expected to facilitate greater market access, encourage investment and integrate both economies more closely into regional supply chains.
Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath said the Government remains committed to strengthening the long-standing economic, cultural and historical relationship between Sri Lanka and Thailand in line with evolving global economic trends.
He identified trade, tourism, transport, logistics, technology and sustainable development as priority areas for future cooperation, adding that continued collaboration and mutual trust would be vital for unlocking new opportunities.
“The steadily growing import and export trade volumes between the two countries year after year are a clear indicator of the progress achieved jointly,” the Minister said.
Herath also commended the Sri Lanka–Thailand Business Council for serving as an effective platform connecting entrepreneurs and businesses from both countries while creating opportunities for investment and commercial partnerships.
Sri Lanka–Thailand Business Council President Rizan Nazeer reflected on the Council’s 25-year journey since its establishment in 2001, noting that it has played an important role in facilitating trade missions, investment discussions, networking initiatives and business forums that have strengthened bilateral economic engagement.
He highlighted significant growth opportunities across tourism and hospitality, food processing, agriculture, logistics, gems and jewellery, apparel, rubber-based products, technology, education, wellness and professional services.
Nazeer also welcomed a 25-member Thai business delegation participating in business meetings in Sri Lanka, expressing confidence that the engagements would generate fresh investment projects and commercial partnerships under the Sri Lanka Thailand Business Council framework.
Thailand’s senior trade representative said both countries occupy strategically important positions within Asia, describing Sri Lanka as Thailand’s gateway to South Asia and Thailand as Sri Lanka’s gateway to Southeast Asia.
She emphasised that resilient supply chains, trusted partnerships and closer regional integration are becoming increasingly important in today’s interconnected global economy.
Speakers also noted that following the celebration of 70 years of diplomatic relations in 2025 and the Business Council’s Silver Jubilee, the focus should now shift towards expanding cooperation in trade, services, investment and people-to-people exchanges.
The event concluded with a shared commitment to deepen economic integration through the Sri Lanka Thailand Free Trade Agreement, enhance regional connectivity and create stronger business partnerships that will position both countries more competitively within Asian and global value chains.