Sri Lanka Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Sri Lanka, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
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Trade Agreements
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Sri Lanka is a party to Free Trade Agreements (FTAs) with India, Pakistan, Singapore, and Thailand. The Thailand–Sri Lanka FTA entered into force in January 2025. Sri Lanka is also a party to the Agreement on South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement.  The current government publicly expressed interest in joining the Regional Comprehensive Economic Partnership (RCEP) as part of a broader effort to strengthen economic ties with Southeast Asian countries.  The government is also exploring advancing an India-Sri Lanka Economic and Technology Cooperation Agreement (ETCA) to expand upon the current India-Sri Lanka FTA.

The FTAs with India and Pakistan cover only trade in goods. They provide duty-free entry and duty preferences on manufactured and agricultural products. A minimum domestic value addition of 35 percent is required for concessions under these agreements.

The Singapore–Sri Lanka FTA, signed in May 2018, covers goods, services, trade facilitation, government procurement, telecommunications, e-commerce, and dispute settlement. The agreement is not fully in operation due to disagreement over market access implementation, though discussions continue the possibility of full implementation.

The United States–Sri Lanka bilateral Trade and Investment Framework Agreement (TIFA), signed in 2002, provides a framework for both governments to discuss and resolve trade and investment issues at an early stage. TIFA is not a free trade agreement. The United States and Sri Lanka are currently negotiating an Agreement on Reciprocal, Fair, and Balanced Trade.

Sri Lankan exports currently qualify for the European Union’s trade incentive program, GSP+. GSP+ provides for full removal of duties on 66% of tariff lines, covering a wide range of products including textiles and fisheries. Eligibility under GSP+ is conditional on Sri Lanka advancing human, labor, and environmental rights and is up for review in 2026. In July 2025, the United Kingdom announced an expansion of its Developing Countries Trading Scheme that will provide reduced or zero tariffs on many Sri Lankan exports.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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