• National Trade Negotiation Committee to undertake preliminary work
• Budget process, festive season delay progress; talks also depend on trading partners

Sri Lanka is in the process of appointing a National Trade Negotiation Committee to undertake the preliminary domestic work required for Free Trade Agreement (FTA) negotiations, with initial activities potentially commencing in January.

Speaking to The Sunday Morning Business, Ministry of Trade Secretary K.A Vimalenthirarajah said that the Government was currently focusing on establishing the committee, which would prepare the groundwork necessary before negotiations on prospective trade agreements could proceed.

“We are currently appointing the National Trade Negotiation Committee to undertake the domestic preparations for the internal primary activities to start certain FTAs,” he said.

The development follows the submission of a study on FTAs to the Cabinet Office. 

However, Vimalenthirarajah did not provide a specific update on the study’s approval or implementation when questioned about its progress.

He indicated that January was a possible timeframe for advancing the preparatory work, citing the ongoing budget process and the approaching festive season as factors affecting the immediate schedule.

He also emphasised that the commencement of negotiations would depend on the agreement of the respective trading partners, as Sri Lanka could not unilaterally determine when discussions would begin.

Meanwhile, the Department of Commerce indicated in October that Sri Lanka intended to prioritise stalled trade negotiations with India and China before exploring potential agreements with other markets. 

The previous administration had also pursued trade discussions with Malaysia, Indonesia, and Bangladesh.

Sri Lanka’s existing FTA framework includes agreements with India, Pakistan, Singapore, and Thailand, alongside participation in regional trade arrangements such as the South Asian Free Trade Area and the Asia-Pacific Trade Agreement.