Cabinet approves new framework for future trade negotiations

• Aims to review and make fresh decision to amend trade pacts; moves forward with new discussions if necessary 
• National Trade Negotiations Committee to lead bilateral and regional FTA talks
• Trade Ministry Secretary to serve as Chief National Trade Negotiator
• 12 sector-specific subcommittees and technical working groups to support negotiations

By Charumini de Silva

The Cabinet of Ministers at its meeting on Monday approved a new institutional framework for negotiating the country’s future Free Trade Agreements (FTAs), aimed at making Sri Lanka’s trade negotiations more focused, sequential and evidence-based.

The decision, taken at the Cabinet meeting on 24 August 2026, follows recommendations of a committee appointed to review Sri Lanka’s existing FTAs and determine the future direction of the country’s trade agreements.

Addressing the media yesterday, Minister Vijitha Herath said, the main objective is to pursue new trade agreements. 

“The purpose is a review and where certain clauses put Sri Lanka at a disadvantage, we need to make a fresh decision to amend them and move forward with new discussions. After reviewing our existing trade agreements as well as the current global economic scenario, we are prepared to move forward with new bilateral trade agreements and regional trade arrangements,” he said responding to queries at the weekly post-Cabinet meeting media briefing.

Herath insisted that these discussions aren’t limited to India and China. “We are also open to pursuing new trade agreements with many other countries,” he added.

A key component of the new framework will be the establishment of a National Trade Negotiations Committee to conduct negotiations with potential bilateral and regional trading partners.

Herath said the Trade, Commerce, Food Security and Cooperative Development Ministry Secretary will serve as the Chairman of the committee as well as the Chief National Trade Negotiator.

“The committee will be supported by 12 subject-specific subcommittees, along with the necessary technical working groups, to provide expertise across different areas of trade negotiations,” he said. 

The Cabinet of Ministers has also approved the establishment of a Trade Policy Advisory Committee, bringing together trade experts, researchers, representatives of the business community and trade associations, civil society representatives and relevant government officials.

He said the advisory committee will provide operational and technical advice to the National Trade Negotiations Committee and make policy recommendations to the Cabinet on matters relating to trade agreements.

It will also be tasked with establishing sustainable consultation and communication mechanisms for stakeholders on proposed and existing FTAs.

“The Minister responsible for International Trade and the Minister responsible for Industry will serve as Co-Chairmen of the Trade Policy Advisory Committee,” Herath added.

He said the move follows the Government’s review of Sri Lanka’s current FTA framework and comes as the country seeks to expand market access, while ensuring that future trade commitments are supported by stronger technical analysis and stakeholder consultation.

He said the new structure is intended to strengthen coordination between State agencies and stakeholders, while providing a more systematic basis for assessing and negotiating future trade agreements.

Sri Lanka enjoys preferential market access under regional and international arrangements, including the South Asian Free Trade Area (SAFTA), the Asia-Pacific Trade Agreement (APTA) and the European Union’s GSP+ scheme. In addition, Sri Lanka has FTAs with Singapore, Thailand and are actively pursuing new trade opportunities through ongoing or planned negotiations with China, Bangladesh and India, he added.