Sri Lanka to expand FTA to boost exports, foreign exchange

Colombo: The Sri Lankan government plans to sign more free trade agreements (FTAs) with foreign partners to diversify its export markets and boost foreign exchange earnings, media reports said on Sunday, citing a senior official.

Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said market diversification is critical to building a competitive and resilient export sector, Xinhua News Agency reported.

He noted that expanding trade partnerships will not only help diversify products but also strengthen integration into global supply chains. The government is also focused on increasing value addition and building stronger brand recognition, he said.

Abeysinghe highlighted that Sri Lanka’s apparel exports generated more than $5 billion in 2024. The government aims to raise that figure to $8 billion by 2030.

In July, the Sri Lankan government gazetted the Presidents’ Entitlements (Repeal) Bill, aiming to abolish special privileges granted to former Presidents and their widows.

The bill follows cabinet approval to amend the Presidents’ Entitlements Act No. 4 of 1986. The proposed changes are designed to end longstanding benefits for former presidents and their widows.

Sri Lanka currently provides a range of privileges for these groups.

Earlier this year, a government minister disclosed that the state spent more than Rs 1.1 billion (about $3.7 million) in 2024 on benefits for former Presidents.

The move to repeal these entitlements fulfils a key pledge of the current administration.

On July 22, the Cabinet of Ministers approved the publication of a draft bill to repeal the Presidents’ Entitlements Act, effectively revoking special privileges granted to former Presidents and their families.

The move is in line with the government’s policy declaration “Pohosath Ratak – Lassana Jeewithayak”, which pledges to reduce state expenditure and promote accountability.