Sri Lanka Trade Policy

Sri Lanka has pursued an open and market-oriented trade policy since the economic liberalization reforms introduced in 1977. Successive governments have continued this policy, making Sri Lanka one of the most open economies in South Asia. Recent reforms have focused on improving the business environment, enhancing trade facilitation, streamlining customs procedures, and integrating the country more closely with regional and global value chains.

Sri Lanka's trade policy seeks to promote export-led growth, attract foreign direct investment, and strengthen the country's competitiveness while safeguarding the interests of domestic industries through transparent and rules-based trade measures.

The Government continues to implement reforms aimed at facilitating international trade, improving customs administration, and ensuring compliance with international standards.

Sri Lanka offers preferential market access under a number of trade arrangements.

Trade Agreements & International Relations

• Bilateral Free Trade Agreements: Indo–Sri Lanka Free Trade Agreement (ISFTA), Pakistan–Sri Lanka Free Trade Agreement (PSFTA), Singapore–Sri Lanka Free Trade Agreement (SLSFTA), Thailand–Sri Lanka Free Trade Agreement (effective from January 2025)
• Regional pacts: South Asian Free Trade Area (SAFTA), Asia-Pacific Trade Agreement (APTA)
• Global preferences: Benefits from the European Union's GSP+ program which provides duty-free access for a wide range of exports to the EU market, Global System of Trade Preferences – GSTP (Over 40 countries)
• United States relations: Trade and Investment Framework Agreement (TIFA)

As a founding member of the General Agreement on Tariffs and Trade (GATT) and a member of the World Trade Organization (WTO) since its establishment, Sri Lanka remains firmly committed to a transparent, predictable, and rules-based multilateral trading system. The country continues to align its trade policies with international best practices while promoting sustainable economic growth and deeper integration into the global economy.

Useful links: Board of Investment of Sri Lanka (BOISL); Department of Commerce, Sri Lanka.