The Government of Sri Lanka has placed all decisions on new and pending trade negotiations on hold pending the outcome of a high-level review aimed at reshaping the country’s trade strategy amid evolving global economic conditions. Authorities say the move is intended to ensure that future Free Trade Agreements are pursued on what officials describe as a “logical and evidence-based foundation.”
The expert committee, appointed by the Cabinet of Ministers, has been tasked with examining the full spectrum of the nation’s trade architecture, including existing agreements, negotiations that were underway, and potential future deals. According to Ministry of Trade, Commerce, Food Security, and Co-operative Development Secretary K.A. Vimalenthirarajah, no negotiations will resume and no new agreements will be initiated until the panel submits its recommendations, expected in June.
Officials emphasized that the committee draws its membership from a cross-section of government departments and research institutions, reflecting an effort to combine policy experience with technical economic analysis. The panel’s mandate is unusually broad, requiring it to evaluate not only the effectiveness of current agreements but also the long-term implications of entering new markets under preferential terms at a time of global trade uncertainty.
The review marks a shift from the previous administration’s aggressive push to expand trade partnerships. That earlier drive resulted in the signing of a bilateral agreement with Thailand and the launch of exploratory discussions with China, Malaysia, Indonesia, and Bangladesh as Colombo sought to widen its export destinations and integrate more deeply into Asian supply chains.
Sri Lanka’s current trade framework already includes several bilateral arrangements, notably agreements with India, Pakistan, and Singapore, alongside the recently concluded Thai pact. In addition to these, the country participates in multiple regional and multilateral preference schemes linked to SAARC and other Asia-Pacific trading mechanisms, as well as tariff preference programs offered by the United Kingdom under its Developing Countries Trading Scheme.
Analysts view the government’s decision as an attempt to recalibrate trade policy after years of rapid agreement-making, ensuring that commitments align with domestic industrial capacity, revenue considerations, and post-crisis economic recovery goals. The committee’s findings are expected to shape not only whether stalled negotiations resume, but also how Sri Lanka positions itself within an increasingly fragmented global trading system.
