COLOMBO: Sri Lanka and the UAE have signed an agreement to strengthen economic ties during President Anura Kumara Dissanayake’s first visit to the Middle East, his office said on Thursday as the island nation seeks to attract more foreign investment.
Dissanayake, who secured the country’s top job in September, returned to Colombo on Thursday after addressing the main session of the 2025 World Government Summit in Dubai and meeting with other world leaders, including UAE Prime Minister Mohammed bin Rashid Al-Maktoum.
The UAE visit was his third international presidential trip, after India and China.
In Dubai, Sri Lanka and the UAE reached an agreement on reciprocal promotion and protection of investments, the president’s media division said in a statement.
“The purpose of this agreement is to facilitate and strengthen foreign investments between the two nations by ensuring investor rights protection, promoting economic cooperation, and establishing comprehensive investment protection mechanisms, dispute resolution frameworks, and policy structures,” it said.
The deal was signed by Sri Lanka’s Foreign Minister Vijitha Herath and the UAE’s Minister of State for Financial Affairs Mohamed Bin Hadi Al-Hussaini.
It is expected to “contribute to strengthening global economic partnerships and creating opportunities for exploring new investment prospects in Sri Lanka.”
The island nation of 22 million people is still struggling to emerge from the 2022 economic crisis — the worst since its independence in 1948 — and the austerity measures imposed under a bailout deal with the International Monetary Fund.
Under Dissanayake, Sri Lanka’s new left-leaning government is working to fulfill his campaign promises of sweeping reforms, including to revive the economy.
Its latest deal with the UAE is part of the country’s “commitment to enhancing Foreign Direct Investment (FDI) and fostering a more attractive investment landscape,” the president’s media division said.
In 2019, the UAE was the 8th largest source of FDI in Sri Lanka.
M. Shiham Marikar, secretary-general of the National Chamber of Exporters of Sri Lanka, said the agreement offers “substantial benefits” for Sri Lankan businesses.
“This partnership is a vital step toward fostering economic growth, securing foreign investments, and strengthening trade relations between Sri Lanka and the UAE,” Marikar told Arab News.
“One of the most significant advantages is enhanced market access to the UAE and the broader Middle Eastern region … The agreement also paves the way for new partnerships and joint ventures, particularly in high-potential sectors like tourism and real estate. Moreover, Sri Lankan businesses, especially SMEs, will benefit from greater access to foreign capital, funding opportunities, and new markets.”
