The Cabinet has approved the commencement of negotiations for a Free Trade Agreement (FTA) between Sri Lanka and Malaysia, marking a significant step towards enhancing economic ties between the two nations.
The government aims to attract export-oriented foreign direct investments, diversify exports, and expand market access for goods and services to help regain economic stability.
Recognizing the strategic importance of economic integration with strong economies like Malaysia, Sri Lanka is set to develop closer economic relations with the Southeast Asian country.
Malaysia, a key member of the Association of Southeast Asian Nations (ASEAN) and the Regional Comprehensive Economic Partnership (RCEP), is currently Sri Lanka’s 34th largest export destination. In 2023, Sri Lanka's total exports to Malaysia amounted to US$ 58.3 million.
