Sri Lanka’s strategic location provides great opportunities to enter into free trade and partnership agreements with several of Asia’s trade powerhouses. Thus, the country has entered into Free Trade Agreements with India, Pakistan and Singapore giving duty free market access from the island to over 1.5 billion consumers.
- The Indo-Lanka Free Trade Agreement (ISLFTA)
- The Pakistan-Sri Lanka Free Trade Agreement (PSLFTA)
- The Free Trade Agreement (FTA) between Sri Lanka and Singapore
The Indo-Lanka Free Trade Agreement (ISLFTA), which came into effect in year 2000, provides strategic access at zero duty for over 4,200 products of Sri Lankan origin to the large Indian market.
The Pakistan-Sri Lanka Free Trade Agreement (PSLFTA), which came into effect in year 2005, covers nearly 4,500 products (duty free from 2008) from Sri Lanka, to the Pakistan market.
The Free Trade Agreement (FTA) between Sri Lanka and Singapore signed in January 2018 gives access to investments and services beyond trade in goods. Sri Lanka also enjoys preferential access to the European Union, following the reinstatement of GSP+, which covers 6,200 out of a total of 7,200 tariff lines available. These three markets alone combine to present an opportunity to reach approximately 2 billion people, when establishing your enterprise in Sri Lanka.
An added advantage for a company locating to Sri Lanka is the preferential trade access gained to two large regional blocs under the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA).