Sri Lanka proposes strategic trade vision at World Economic Forum 2025

Sri Lanka’s Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, has shared key highlights from a bilateral discussion held during the World Economic Forum (WEF) 2025 with Ms. Kimberley Botwright, Head of Fair Trade and Governance at the Forum.

The meeting focused on Sri Lanka’s efforts to position itself as a responsible and strategic trade partner in the global economy. Below is a summary of the main proposals presented by the Sri Lankan delegation:

1. Strategic Positioning as a Responsible Trade Partner

Minister Handunnetti emphasized Sri Lanka’s commitment to transparent and rules-based trade practices. He said the country is actively engaged in institutional reforms and cited ongoing tariff discussions with the U.S. as an example of efforts to recalibrate global trade relations.

He also pointed out Sri Lanka’s strategic location in the Indian Ocean and its current role as Chair of the Indian Ocean Rim Association (IORA) from 2023 to 2025, highlighting its importance in global supply chain diversification.

2. Diversifying Trade and Strengthening Value Chains

The Minister outlined plans to reduce dependence on traditional markets such as the U.S., which accounts for 25% of Sri Lanka’s exports. He said the country is expanding trade links with fast-growing Asian and African nations, including a proposed preferential trade agreement with Indonesia.

In addition, Sri Lanka is aiming to move traditional exports like apparel and tea up the value chain by focusing on sustainability, innovation, and green manufacturing in line with WEF’s global goals.

3. Promoting Responsible Trade Practices

Sri Lanka is committed to maintaining high labor and environmental standards, particularly in the apparel sector, to ensure compliance with international norms and avoid trade barriers in the U.S. and EU markets.

The Minister also proposed partnerships in the green economy, including renewable energy and sustainable ocean-based industries, referencing the outcomes of the 2023 AIS Summit.

4. Addressing Structural Challenges

Sri Lanka requested support from the World Economic Forum to advocate for U.S. tariff relief, including the possible revival of the GSP+ scheme. The country also called for help in overcoming non-tariff barriers such as Indonesia’s ban on palm oil imports.

Additionally, the government seeks technical assistance to improve digital trade infrastructure, including single-window systems and greater e-commerce access for small and medium enterprises (SMEs).

5. Institutional Reforms and Global Partnerships

Minister Handunnetti outlined ongoing trade policy reforms to align Sri Lanka with international trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

He also invited the World Economic Forum to facilitate dialogue between investors and Sri Lankan businesses, including sectors like apparel and seafood, to explore sustainable investment opportunities.

Call for a Joint Task Force

To ensure continued progress, Sri Lanka proposed the formation of a joint WEF–Sri Lanka Task Force, with quarterly reviews to advance the outlined trade priorities.

Minister Handunnetti concluded by stating, “Sri Lanka is not just seeking relief but relevance. We aim to act as a bridge between developing and developed economies, guided by responsible governance.”