The 4th Meeting of the Joint Working Group (JWG) on Trade, Investment and the Auto Sector between Sri Lanka and Pakistan was held virtually on 1 July 2026, under the framework of the Pakistan–Sri Lanka Free Trade Agreement (PSFTA). The meeting brought together senior officials from both countries to review progress on bilateral trade and investment matters.

The Sri Lankan delegation was led by Mr. Somasena Mahadiulwewa, Director General of Commerce, Department of Commerce, while the Pakistani delegation was led by Dr. Muhammad Adnan, Joint Secretary, Ministry of Commerce of the Islamic Republic of Pakistan. In his opening remarks, the Director General of Commerce underscored the importance of translating high-level commitments into concrete outcomes and reaffirmed Sri Lanka's commitment to strengthening bilateral trade and investment ties with Pakistan. Dr. Adnan, in his opening statement, echoed similar sentiments on behalf of the Pakistani side.

The Sri Lankan side raised a range of trade and investment issues, including the long-pending request for a compensatory arrangement in respect of the unilateral inclusion of auto and non-auto sector tariff lines in Pakistan's Negative List, and the continued application of Regulatory Duties on Sri Lankan export products. Discussions also covered cooperation in trade promotion, including Sri Lanka's upcoming Sri Lanka Expo 2027, as well as proposals for capacity building and technical assistance in the pharmaceutical sector, facilitation of phytosanitary approvals for Sri Lankan fresh fruit exports such as pineapple and avocado, and avenues to enhance Pakistani investment into Sri Lanka through the Board of Investment and the Ministry of Industry and Entrepreneurship Development.

The Pakistani side, in turn, raised a number of proposals and issues for Sri Lanka's consideration, including the inclusion of a dedicated Services Chapter under the PSFTA; enhancement of the Basmati rice quota ,the nomination of a Nodal Chamber for an effective Dispute Settlement Mechanism under the PSFTA; the removal of para tariffs and non-tariff measures adversely affecting bilateral trade, cooperation in technology up-gradation in handloom textile design and weaving; enhanced trade cooperation in the pharmaceutical sector, including a proposed Memorandum of Understanding on the procurement of pharmaceutical products; and the establishment of a Bilateral Trade Helpdesk between Trade Promotion Organizations of two countries.

The 4th Meeting concluded on a positive and forward-looking note, with both delegations expressing satisfaction with the discussions held. Sri Lanka and Pakistan reaffirmed the enduring strength of their bilateral relationship and their intent to translate the meeting's deliberations into tangible outcomes, further consolidating the longstanding friendship and economic partnership between the two nations.

Sri Lanka successfully participated in the 10th China–South Asia Exposition (CSAE) and the 30th China (Kunming) Import and Export Fair held from 11–16 June 2026 in Kunming, China, further strengthening trade, investment and economic cooperation between Sri Lanka and China.

The Sri Lankan delegation was led by Hon. Wasantha Samarasinghe, Minister of Trade, Commerce, Food Security and Cooperative Development, and included Minister (Commercial) of the Embassy of Sri Lanka in Beijing and the officials of the Department of Commerce, and over 250 business representatives from around 100 Sri Lankan exporters. Hon. Arun Premachandra, Deputy Minister of Foreign Affairs and Foreign Employment, also participated in the China–South Asia Cooperation Forum held alongside the Exposition.

Prior to the opening of the Exposition, the delegation participated in the 3rd Seminar between Chinese and South Asian Government Industries, Universities and Research Institutions, which focused on innovation, research collaboration, technology transfer and industrial partnerships.

Addressing the opening ceremony, Minister Samarasinghe emphasized the importance of strengthening market access, investment cooperation, SME partnerships, digital trade, and trade facilitation to support export-oriented economies. He underscored the need for deeper economic collaboration with China to promote sustainable growth, enhance trade opportunities, and foster shared prosperity across the region. The Minister also inaugurated the Sri Lanka Pavilion, which featured 100 booths spanning more than 1,000 square meters and showcased a diverse range of Sri Lankan products and services, including Ceylon tea, spices, gems and jewellery, coconut-based products, seafood, apparel, handicrafts, wellness products, and aviation-related services.

Sri Lanka’s participation in the exposition has grown significantly in recent years, with the 2026 delegation representing one of the country’s largest business contingents to attend the event. Participating Sri Lankan companies reported successful product sales during the Fair and established promising business-to-business partnerships, paving the way for potential export deals, distributorship arrangements, and long-term commercial collaborations. Sri Lanka also participated in the South Asia Commodity (Tea) Festival to further promote Ceylon Tea in the Chinese market.

A dedicated Business-to-Business (B2B) Matchmaking Event was organized by the authorities of the Yunnan Province in parallel with the Exposition to facilitate direct engagement between Sri Lankan and Chinese enterprises. A notable outcome of the event was the signing of a Memorandum of Understanding (MoU) between M/s Premium Beverages (Pvt) Ltd, a Sri Lankan liquor exporter, and one of China’s leading winery and liquor distribution companies to promote Sri Lankan products in the Chinese market.

During the visit, Minister Samarasinghe and the delegation held discussions with the Governor of Yunnan Province and the Department of Commerce of Yunnan Province on expanding trade and investment cooperation, improving market access and strengthening logistics connectivity between Sri Lanka and China.

The delegation also visited the Kunming Comprehensive Bonded Zone, where the Chinese Government has expressed its willingness to provide Sri Lankan exporters with access to free warehouse facilities under the “Three Facilitations and Three Exemptions” initiative. The proposed facility is expected to strengthen supply chain connectivity, improve trade efficiency, and support the expansion of Sri Lankan products in the Chinese market.

The China–South Asia Exposition, jointly organized by the Ministry of Commerce of China and the Government of Yunnan Province, continues to serve as one of the region’s premier platforms for promoting trade, investment, business networking, and people-to-people exchanges between China and South Asian countries. The organizers provided the entire Sri Lanka Pavilion free of charge, while the Department of Commerce of Sri Lanka successfully coordinated the country’s participation in close collaboration with the organizers, participating Sri Lankan companies, and other key stakeholders. In recognition of its outstanding efforts in organizing and facilitating Sri Lanka’s participation, the Department of Commerce was awarded the “Outstanding Exhibition Organizer Award” by the Exposition organizers. Sri Lanka’s successful participation at the Exposition has further strengthened its longstanding ties with China and created new opportunities for trade, investment, and business collaboration. The Government of Sri Lanka remains committed to supporting exporters, expanding access to international markets, and deepening economic engagement with China, the world’s second-largest consumer market.