RIYADH: As Saudi Arabia continues to advance diplomatic initiatives and milestones in 2026 with countries around the world, one of the fastest-developing relationships is between the Kingdom and Sri Lanka.
During his visit to Riyadh, Chathuranga Abeysinghe, Sri Lanka’s deputy minister of industry and entrepreneurship development, spoke to Arab News about the bilateral relationship and the sectors it is fostering in the coming year, spanning business cooperation and people-to-people ties.
Abeysinghe described the current relationship between the two countries as still evolving.
“Currently, I think it’s limited ties, but there are negotiations taking place on a particular investment and trade promotion act agreement … my foreign affairs minister has visited, and they have started the discussions.”
Building on developments in 2025, Abeysinghe noted that “exports from Sri Lanka to Saudi Arabia have increased,” but most of the ties are through the labor market.
“We have about 200,000 Sri Lankans working here, and that has been the most prominent economic activity so far,” he said, before highlighting the renewable energy and minerals sectors as areas with “huge potential” for future collaboration.
Elaborating on renewable energy, Abeysinghe told Arab News that Sri Lanka’s renewable energy potential is 16 times greater than its projected needs even in 2050. “We would like to see how we can make use of that. We are expecting investments to come into this sector because, going forward, green hydrogen will be a key energy source,” he said.
The deputy minister also said there is scope for expanding maritime activities in shipping and ports, as well as tourism, because “we see great potential for Sri Lanka to work with Saudi-based tourists.”
In the IT sector, the minister noted that Saudi Arabia is investing heavily in AI and technology, adding: “We see opportunities for collaboration between our startups and Saudi investors.”
While these key sectors are at the forefront of near-term initiatives, Abeysinghe also pointed to agriculture as a pillar for future cooperation.
“Some of our crops are unique, and we see that the Middle East, especially Saudi Arabia, is focused on food security and authentic food. We have very unique premium agricultural products,” he said, adding that the sector could see strong growth with the right partnerships.
According to Abeysinghe, the potential for these sectors to thrive is also linked to Saudi Arabia’s transformation and strategic positioning.
“What we see from Saudi Arabia’s perspective is strength as a country in terms of driving transformation with a clear vision. We see how changes have taken place both physically and economically in Saudi Arabia,” he said, adding that the past few years have shown that the potential is huge, and there is clearly significant capital that can be tapped into.
A significant portion of that capital comes from the private sector, which Abeysinghe and the Saudi-Sri Lanka Joint Business Council have underscored as a fundamental pillar of the bilateral relationship.
Speaking about the evolving private-sector engagement under the countries’ joint business council, Abeysinghe said: “We, from a government perspective, want to facilitate these two parties to work together, and to see and support the agenda that they will set forth as a council.”
Adding to the discussion on the private sector, he also elaborated on the role of small and medium enterprises, noting that Sri Lanka does not have large corporations and that, by global standards, its companies are either medium or small yet “world class.”
Abeysinghe said partnerships with Saudi brands and large investors could significantly deepen cooperation, particularly by exploring whether some production entities could be based in the Kingdom as it pursues economic diversification beyond oil. “There are opportunities because we have now built expertise,” he added.
Further underscoring Saudi Arabia’s transformation efforts, Abeysinghe pointed to technology as another key area for collaboration, describing it as a sector rich in opportunity because it “doesn’t require large manpower, but it’s about the skills and IP (intellectual property).”
Looking ahead to initiatives planned for the coming year, he told Arab News: “We would like to see G2 (government-to-government) partnerships. We will be sending proposals here and also a targeted approach on certain products that fit the Saudi market, to see more bilateral discussions taking place between the private sector in Sri Lanka and the private sector in Saudi Arabia.”
