TRADING SMART: Strengthening Sri Lanka–New Zealand Economic Relations in a Shifting Global Economy

By Githmi Silva

Trade is a powerful diplomatic tool in a heavily interconnected world. While exports and imports often dominate the conversation about trade, it is important to note that trade is far more complex than that. Trade is not a stand-alone activity; it contributes to a country’s economic resilience, national security, strategic positioning, and several other aspects. Given its ability to shape global power dynamics, even minor policy shifts can trigger far-reaching consequences. The tariff measures imposed by the Trump administration, for example, sparked intense debate about how quickly shifts in major economies can ripple across the world.

In such scenarios, smaller states that depend heavily on support and access to markets in the West become the ones who bear the highest portion of the burden. This reminds the necessity for smaller states to cultivate diverse trade relations rather than relying on singular markets. As a developing nation, Sri Lanka depends significantly on exports to sustain economic growth. While the country has a far-reaching history of exporting goods, it became more prominent towards the latter part of the 1970s with economic liberalization. Although current export flows are diverse, they disproportionately rely on a few key markets like the United States, the United Kingdom, and India. This concentration may cause potential risk due to economic vulnerabilities; therefore, Sri Lanka must tap into alternative markets. In this regard, New Zealand stands out as a promising alternative market offering multiple avenues to strengthen bilateral trade relations.

Overview of Sri Lanka-New Zealand Trade Relations

Since joining the Colombo Plan, both Sri Lanka and New Zealand have demonstrated a shared commitment to promoting economic and social development. With the introduction of economic liberalization under President J. R. Jayewardene in 1977, Sri Lanka adopted an open-market model that facilitated growth in export-oriented ventures. While New Zealand was not among the top markets for Sri Lankan goods, the two nations developed a steady bilateral trade relationship ever since. Over the years, New Zealand began exporting more dairy products, while Sri Lanka continued to export tea, rubber, and garments.

While the trade relations grew at a modest pace, they marked some notable milestones after 2010, following the signing of the Dairy Cooperation Agreement in 2013. The agreement was signed as a result of bilateral talks between President Maithripala Sirisena and the New Zealand Prime Minister, John Key, whose visit to Sri Lanka also served to revitalize trade relations between the two countries (Eurasia Review, 2016). This agreement set the tone to uplift sectoral engagement between the two countries, specifically in the dairy and agricultural sectors. When bilateral trade commenced to indicate an increased diversification into areas like education services, machinery, and processed foods, the two countries came into discussion for a Free Trade Agreement in 2016. This agreement was proposed following the discussions between New Zealand Trade Minister Todd McClay and Sri Lankan Prime Minister Ranil Wickremesinghe; the officials considered a framework to boost economic ties, considering the complementary economies between New Zealand and Sri Lanka (Reuters, 2017). While these discussions paved the way to potential opportunities to strengthen bilateral trade relations, the FTA did not come to force. There is no precise reason why the FTA did not come into reality, but the asymmetry in trade volumes, less need for strategic lobbying, and Sri Lanka’s occasional domestic instability could be considered as possible causes.

Potential to strengthen the bilateral trade relations between Sri Lanka and New Zealand

Certain trade initiatives between the two countries did not materialize; nevertheless, there is still room to enhance them. In fact, the countries have not completely cut off trade relations, and gradual improvements are underway. For instance, Sri Lanka’s exports to New Zealand have increased by 12.85% in 2024 compared to 2023 (Sri Lanka Export Board, n.d). According to the Sri Lanka Export Board (2024), in terms of exporting goods, Sri Lanka mostly exports tea, made-up textiles, gloves, mittens, undergarments, pneumatic and retreaded rubber tyres, coco peat, fiber pith, and moulded products to New Zealand. On the other hand, Sri Lanka’s main imported products from New Zealand in 2024 include meat, fish and dairy produce, wood and wooden products, live animals, fruits, products of base metal, sugar confectionery, and bakery products. Although current exports are mostly conventional, there are several other products and even services that hold potential for trade between Sri Lanka and New Zealand.

It is high time for the two countries to explore ways to diversify the options. Speaking of trade diversification, this can be pursued by finding innovative uses for goods already being traded and exploring untapped opportunities. To elaborate, tea remains one of Sri Lanka’s in-demand exports in New Zealand. It ranks among the top Sri Lankan products exported to New Zealand, with strong demand driving continued trade, making it essential to maintain and strengthen supply efforts. Dilmah Ceylon Tea Company, for instance, has adopted innovative strategies to meet consumer demands by specifically tailoring its offerings to the preferences of the New Zealand market. Going beyond its traditional gourmet Ceylon tea, Dilmah has identified emerging trends and consumer insights to develop a new range of iced teas, low-sugar carbonated tea sodas, and premium tea mixers exclusively available to New Zealand (Estate, 2023). Thanks to the customer-focused approach, Dilmah has been voted New Zealand’s most trusted tea brand for five straight years in the People’s Choice awards, and generates significant revenue via the New Zealand market (Dilmah News, n.d).

While optimizing current exports remains important, unlocking new trade opportunities is also vital. Several unexplored goods and services present a chance to diversify trade between Sri Lanka and New Zealand. In terms of goods, food products (processed or preserved), spices, and synthetic textiles have been identified as promising export options from Sri Lanka to New Zealand (Export Development Board Sri Lanka, 2025). However, exports are no longer confined to goods alone. Due to changes in global trade patterns, service exports, particularly those rooted in knowledge-based production, play a notable role in deepening economic ties.

Countries transitioning from resource-based economies to competitive knowledge-driven models are seeing more resilient and diverse exports; advances in IT, digital systems, and R&D have transformed sectors like logistics, business operations, and education, making knowledge-intensive services a growing force in international trade (Seneviratne, 2025). Sri Lanka holds strong potential to expand its knowledge-based exports, specifically in IT, Software, and BPO sectors. With a skilled talent pool and a rapidly growing IT sector, Sri Lanka can provide services such as cloud solutions to the New Zealand market. This is a win-win situation for both countries, delivering a strong revenue stream for Sri Lanka and cost-effective solutions for New Zealand. In addition, Sri Lanka can further diversify its service export base by developing niche markets such as wellness tourism, maritime logistics, and shipping-related services into broader, sustainable sectors.

The establishment of the New Zealand High Commission in Sri Lanka in 2021 significantly advanced bilateral cooperation across multiple sectors, including trade. Reflecting this growing partnership, Sri Lanka opened a High Commission in New Zealand and the first resident High Commissioner presented credentials at the beginning of 2025. These steps indicate that Sri Lanka and New Zealand have great potential to strengthen and maximize their trade relations. While New Zealand may not currently be Sri Lanka’s top export destination, or vice versa, there remains significant potential and multiple avenues to deepen and diversify bilateral economic engagement.

Importance of strengthening the bilateral trade relations between Sri Lanka and New Zealand

Trade is a volatile factor, and primarily engaging with larger economies often carries complexities. Given that global trade faces increasing threats from geopolitical instability, bilateral economic partnerships should not be limited to the West or traditional major markets. Expanding trade ties to regional and nontraditional markets significantly provide diversified options, helping to reduce exposure to external trade shocks. At present, Sri Lanka’s export strategy is concentrated on a handful of markets that are particularly susceptible to global disruptions. Recent data shows that 23% of Sri Lanka’s exports, valued at $2.79 billion, go to the United States, standing as Sri Lanka’s largest export market; the United Kingdom and India take the second and third spots (Trend Economy, 2023). While the United States remains Sri Lanka's top export destination, Sri Lanka's shipment data for 2024 has recognized India and China as the biggest import partners; The Central Bank noted growth in exports, especially food, coconut-based, and manufactured items alongside a moderate rise in imports, helping reduce the trade deficit (Central Bank of Sri Lanka, 2024).

To avoid the bottlenecks and economic strains, Sri Lanka must adopt broader trade strategies that do not heavily depend on one market. Global economic fluctuations inevitably impact smaller nations like Sri Lanka, and this underpins the need to seek opportunities in emerging markets. Sri Lanka’s economic growth notably depends on the export sector. Strengthening the export sector is key for Sri Lanka’s economic recovery and future resilience. Efforts must focus on diversifying products, improving quality, supporting small and medium enterprises, exploring new markets, and forming trade partnerships that contribute to reducing tariffs, improving market access, and enhancing trade relations (Ceylon Public Affairs, 2024).

Under Annex 1 of the Country Reciprocal Tariffs (2025), the US has imposed a 44% tariff on Sri Lankan exports, which is a far higher tariff rate in comparison to other competing countries, and this largely diminishes the value of Sri Lankan exports in the US market. With the US as Sri Lanka’s primary export market, this shift, driven by the ‘America First’ policy, presents a major long-term risk to the nation's economy. Cost competitiveness was a challenge for Sri Lanka even before the Trump tariffs, and the added uncertainty is likely to reduce buyer confidence and investment activity; moreover, as tariff policies continue to shift in response to both US and foreign actions, global trade tensions are likely to arise (Abeysinghe & Arangala, 2025).

Under these circumstances, Sri Lanka must move beyond traditional markets and pursue diversified trade avenues. New Zealand, as noted in this article, presents a strong opportunity. Although it may sound challenging initially, expanding solid trade partnerships with new markets helps reduce reliance on limited markets and drive initiatives such as product diversification, quality improvement, and the formation of strategic trade partnerships. Despite limited strategic leverage, Sri Lanka and New Zealand remain vital players in the Indo-Pacific region. Given their complementary economies, there is significant potential to pursue a bilateral trade agreement. While improving primary exports, there’s room to tap into specific sectors such as agriculture, which can mutually benefit both countries, particularly as New Zealand seeks high-standard, reliable agricultural imports (Economy Next, 2025). These diverse and strong trade relations often spill into other areas like education, tourism, and cultural exchange, which support a deeper economic partnership in the long run.

Expanding trade ties between Sri Lanka and New Zealand present a valuable opportunity to enhance regional stability in the Indo-Pacific. As a region often shaped by strategic tensions due to the presence of major powers like China and India, strengthening relations among smaller and middle powers offers a more balanced dynamic. Cooperation between countries like Sri Lanka and New Zealand helps to minimize overdependence, reducing the risk of dominance by any single power. Theoretically speaking, to avoid external trade shocks or any geopolitical tensions for that matter, smaller states opt to use hedging as a Foreign Policy strategy. Simply put, hedging refers to an insurance-seeking behavior that reflects a rational calculation, maintaining diversified partnerships as a safeguard against future geopolitical shifts (Kuik, 2021). In comparison to major powers within and beyond the region, neither Sri Lanka nor New Zealand can pick one side or can afford to be drawn too deeply into great power rivalries. Applying this to the trade aspect, it helps both countries to reach out to diverse trade options while maintaining their independent foreign policy under minimum risks.

Way Forward

While entering new markets poses challenges, it remains crucial in a shifting global environment. Relying on singular markets in terms of trade comes with great risks. Sri Lanka has been experiencing it, and taking action has become more important than ever. Taking proactive steps to diversify trade has become a must to avoid future threats and sustain national economies. Despite hurdles, building strong trade relations between Sri Lanka and New Zealand continue to be optimistic. Such a partnership supports a rules-based economic cooperation and contributes to sustainable, inclusive economic development.

References

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NEUTRAL GROUND: Sri Lanka’s Foreign Policy Test amid Indo-Pak Tensions

By L. M. Sachini Navodya

The Pahalgam attack on April 22, 2025 reignited the nuclear-tinged historical rivalry between India and Pakistan, raising concerns about regional stability. If the situation escalates into armed conflict, Sri Lanka, as a regional actor with historical and current ties to both countries, could face significant geopolitical, economic, and security repercussions. This article thus explores the implications of a possible inter-state conflict on South Asia and particularly on Sri Lanka, drawing on the complex history of the India-Pakistan conflict and Sri Lanka’s evolving role in South Asian geopolitics.

History of India-Pakistan Conflict

Looking back at the history of this rivalry, since independence from Britain in 1947, India and Pakistan have engaged in four major wars and numerous skirmishes, with the disputed territory of Kashmir at the heart of their rivalry. Key milestones include the: First Kashmir war (1947-1948), triggered by Pakistan-backed tribal incursions into Kashmir, leading to the Maharaja’s accession of the region to India and the establishment of the Line of Control (LoC) following a UN-brokered ceasefire; Second Kashmir war in 1965 sparked by border clashes and Pakistan’s Operation Gibraltar in Kashmir, ending in a military stalemate and the Tashkent Agreement; Third Kashmir war in 1971 centered on the Bangladesh Liberation movement, which resulted in the creation of Bangladesh and a decisive Indian victory and Kargil war in 1999 marked by Pakistani infiltration in Kargil, Ladakh, and intense fighting at high altitudes, with India regaining lost ground and Pakistan facing diplomatic isolation. These conflicts have thus entrenched a legacy of distrust, militarization, and nuclear brinkmanship in South Asia.

Impact on South Asia: A Region at Crossroads

The 21st century has been hailed as the ‘Century of Asia’, with South Asia poised to leverage its demographic dividend and economic potential. However, an India-Pakistan conflict could shatter this vision, exacerbating existing vulnerabilities. The nuclear brinkmanship with both nations possessing nuclear arsenals, and heightened tensions risk accidental escalation, as seen during the 1999 Kargil War and 2019 Balakot crisis.

A potential crisis could also spur economic disruption in the region risking South Asia’s intra-regional trade (less than 5% of total trade) to collapse further, particularly if India-Pakistan border closures and airspace restrictions persist. The China-Pakistan Economic Corridor (CPEC), which traverses disputed Kashmir, could become a flashpoint, drawing China deeper into the conflict. It could also lead to humanitarian crises such as the triggering of refugee flows, straining of resources, and the revival of ethnic tensions, particularly affecting marginalized communities in Kashmir and border regions.

The potential rivalry could also result in an institutional paralysis leading regional organizations like the South Asian Association for Regional Cooperation (SAARC), already weakened by the clash of the two, to face irrelevance, stalling initiatives like the South Asian Free Trade Agreement (SAFTA).

Sri Lanka’s Role in the Prolonged Conflict

Sri Lanka has historically played a nuanced and pragmatic role throughout the rivalry between its two neighbours, often leveraging its position to maintain autonomy and serve its national interests while navigating the sensitivities of both regional powers. In the 1971 India-Pakistan war, under Prime Minister Sirimavo Bandaranaike, Sri Lanka notably allowed Pakistani civilian and military aircraft to refuel and use Colombo as a stopover, after India denied Pakistan overflight rights. This was a significant move since it enabled Pakistan to maintain air links with its eastern territory (now Bangladesh) while underscoring Sri Lanka’s willingness to assert its sovereignty and its non-aligned foreign policy —even at the risk of displeasing India, its much larger neighbour. The balancing act was furthermore visible with Sri Lanka maintaining strong diplomatic and economic ties with India despite providing Pakistan with logistical support.

What a Renewed Conflict could mean to Sri Lanka?

Thus, predicting what impact a possible conflict could have on Sri Lanka, as a fragile small power, a renewed conflict could force Colombo into a precarious diplomatic balancing act. It would compel Sri Lanka to avoid overt alignment, risking alienation from either power or both.

● Security and Strategic Autonomy

An India-Pakistan war would heighten regional insecurity, potentially drawing Sri Lanka into the conflict’s periphery. The island’s proximity to India and its reliance on Indian goodwill for security and economic stability would limit its foreign policy flexibility. Sri Lanka might face pressure to align with India, risking its defense ties with Pakistan and complicating its non-aligned stance. Furthermore, worsening the crisis, such a conflict could invite greater involvement from external powers (China, the US), with Sri Lanka potentially becoming a site for strategic competition, especially given its ports and location along key maritime routes. This potential involvement would also make the country’s act of balancing even complicated, with Sri Lanka’s increased alignment with India economically and diplomatically, particularly given China’s entrenched support for Pakistan and its footprint in Sri Lanka in terms of debt and investments.

The escalation of the potential conflict could also lead to possible dilemmas for Sri Lanka. If China intensifies military support to Pakistan, India might pressure Sri Lanka to restrict Chinese naval access to Hambantota emphasizing the threat to India’s security, testing Colombo’s diplomatic agility. Given the potential support of the US to India, enhanced Quad cooperation could offer Sri Lanka alternative investments, reducing reliance on China but requiring alignment with Western strategic interests on the other hand.

● Economic Vulnerabilities

Sri Lanka’s economy, still recovering from its 2022 debt crisis, remains fragile. A regional conflict could disrupt maritime trade routes in the Indian Ocean, affecting Sri Lanka’s ports, which handle transshipment for both India and global markets. Furthermore, tourism—a critical revenue source—could suffer due to perceived instability, echoing declines seen during the country's civil war. Additionally, rising oil prices from conflict-driven market volatility would strain Sri Lanka’s import-dependent economy further.

● Humanitarian and Diplomatic Fallout

A protracted conflict could exacerbate refugee flows to Tamil Nadu, indirectly affecting Sri Lanka through heightened sensitivities around Tamil minority rights. Colombo might also face pressure to condemn cross-border terrorism, aligning with India’s stance, while avoiding actions that could legitimize Pakistan’s position.

Sri Lanka’s Tightrope: Navigating Indo-Pak Conflict

At an hour of a renewed rivalry between India and Pakistan, Sri Lanka’s best strategy is to maintain a pragmatic, balanced, and non-aligned foreign policy, leveraging its geostrategic location to attract investment and security cooperation from multiple powers without becoming a proxy or flashpoint in their rivalries.

At an hour of foreign policy dilemma, it is vital that Sri Lanka emphasizes balanced engagement and sovereignty. Sri Lanka’s leadership has repeatedly articulated a desire to remain neutral and avoid entanglement in great power rivalries, as reflected in statements emphasizing non-alignment and the prioritization of national sovereignty. This approach allows Sri Lanka to maintain flexibility and avoid being drawn into the strategic competition between India and China, both of whom have substantial interests in the island—India as a regional hegemon and China as part of its Belt and Road Initiative (BRI).

The country could reinforce its neutrality through proactive diplomacy. It could publicize its non-aligned stance by issuing immediate statements emphasizing Sri Lanka’s neutrality, drawing from its historical non-aligned movement roots. Declare Colombo as a potential venue for peace talks, leveraging its 1971 precedent of facilitating dialogue during crises.

Sri Lanka could also activate regional platforms by using the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) or SAARC forums to advocate de-escalation, positioning Sri Lanka as a mediator while highlighting shared regional interests in maritime security and economic stability to rally consensus.

The strengthening of ties with regional organizations like SAARC and BIMSTEC would also aid in ensuring economic safety and trade continuity for Sri Lanka. This “concentric circles” approach places geographic neighbours at the center of engagement, which helps assuage Indian security concerns while still allowing space for economic cooperation with China and others.

The country could also leverage its strategic location for multilateralism at an hour of crisis. Sri Lanka’s position at the crossroads of major maritime routes gives it leverage to act as a hub for trade, logistics, and regional connectivity. By promoting itself as a neutral venue for dialogue, maritime cooperation, and disaster response, Sri Lanka can attract investment and security partnerships from a range of actors, including the US, Japan, and the EU, in addition to India and China. This multilateral approach reduces overdependence on any single power and increases Colombo’s diplomatic capital.

Conclusion

In a nutshell, the India-Pakistan conflict, amplified by external power rivalries, threatens to fracture South Asia’s fragile cohesion. For Sri Lanka, the crisis underscores the perils of multipolarity: economic dependencies and strategic alignments leave little room for autonomy. Its survival in an India-Pakistan war hinges on active neutrality, economic pragmatism, and multilateral hedging. By leveraging its geostrategic location, historical non-alignment, and partnerships with extra-regional powers, Sri Lanka can insulate itself from direct fallout while positioning itself as a facilitator of regional stability. The goal must be to emerge as an indispensable intermediary rather than a collateral casualty. Thus, unless regional leaders prioritize dialogue over brinkmanship, the promise of an Asian Century risks being eclipsed by perennial conflict and geopolitical fragmentation.

INDIA - MAURITIUS RELATIONS: A Multifaceted Analysis of Bilateral Cooperation

By Nishali Ranasinghe

The 2025 visit of Indian Prime Minister Narendra Modi to Mauritius made headlines in global news. Modi received Mauritius' highest honour, the Grand Commander of the Order of the Star and Key of the Indian Ocean, suggesting a strong connection. This visit by a prime minister to another country raises questions about why the PM traveled to Mauritius, an island with little influence in world politics. Analyzing the relationship between these two countries will provide an answer to that question.

The Historic Connection

Mauritius is a subtropical island country in the Indian Ocean, just over 1,130 kilometers east of Madagascar, off the southeastern coast of Africa. Its outlying territories include Rodrigues Island and other smaller islands (The Commonwealth, n.d.). Conversely, India is a rising global power in the Asian region with more than 1.4 billion populations. Mauritius and India may not share the same status in the global arena. However, these two countries share a strong bond, rooted for ages. According to Sinha (2024), after Mauritius became an English colony in 1810, approximately 470,000 Indians were sent to Mauritius as indentured labourers between 1834 and 1920 and this significantly impacted the sugar plantations. The human cargo was carried from Bihar, Tamil Nadu, and Uttar Pradesh. The people who migrated to Mauritius embarked on their new journey in Mauritius with a new identity but retained Indian values and cultures. As a result, out of the 1.2 million population in the country, 70% are of Indian origin.

In addition, in 1901, while traveling to South Africa, Mahatma Gandhi landed in Mauritius and advised the people to educate themselves and reclaim their identity. This message stayed with them and because of it, they celebrated their national day on the day Gandhi started his Dandi March also known as the Salt March on March 12.

After becoming an independent state in 1968, Seewoosagur Ramgoolam became the first prime minister of Mauritius, and his son, Navin Ramgoolam is the current prime minister. The connection between the two countries has not been reduced but expanded in many ways. This expansion has occurred in different sectors; Defense, Military and Strategy, Economy, Technology, and Capacity Building.

a. Defense, Military and Strategic Partnership

In 1974, the two countries signed a defense agreement, making India and Mauritius strategic partners. To date, India guarantees Mauritius’ security showcasing a powerful bond. The backing of India has been evident on several occasions. In 1983, there was a rumour about a coup by the MMM (Mauritius Military Movement), and even though it never occurred, it was believed that the then PM, Indira Gandhi wanted to send Indian troops to the country. In 2024, India welcomed the UK-Mauritius agreement for Mauritian sovereignty over the Chagos archipelago, which houses a US-UK military base, and Modi reiterated India’s “firm support” for Mauritius on this issue (Parashar, 2025).

In his recent visit to Mauritius, Modi again confirmed that India will support Mauritius’ sovereignty over the Chagos Island following the statement made by US President Trump that he would support a deal between Mauritius and Great Britain over the future of the United States-United Kingdom base in the Islands. It can thus be understood how India has always been a country that supports Mauritius in protecting its sovereignty and territorial integrity proving to be a friend in need.

Additionally, the Indian Prime Minister also unveiled "Vision MAHASAGAR – Mutual and Holistic Advancement for Security and Growth Across Regions” for the Global South which vision builds upon the foundation of the earlier "Vision SAGAR" (Security and Growth for All in the Region) that encompasses principles of trade for development, capacity building for sustainable growth, and mutual security for a shared future (Laskar, 2024).

Furthermore, since 2009, the Indian Navy has been deploying ships to Mauritius bi-annually to assist in patrolling the vast EEZ of the island country. The joint patrolling focuses on preventing piracy and illegal fishing and helps reinforce maritime security in the Exclusive Economic Zone (EEZ) of Mauritius (Padmaja, 2017). As reported in Firstpost (2024), since the EEZ in Mauritius extends up to 2.3 million square kilometers and is difficult to monitor, India built an airstrip costing $250 million in Agalega Islands after signing a memorandum in 2015. The airstrip is 3km long and is suitable for Long Range Maritime Reconnaissance Anti-Submarine Warfare (LRMR-ASW) aircraft which are used for maritime surveillance and strike, electronic warfare missions, and search and rescue missions. This will ultimately assist them with their goal to combat contemporary non-traditional security threats such as piracy, drug trafficking, and terrorism.

In this manner, Mauritius has the security and defense backing from one of the rising global powers in the world. From India’s side, they are capable of protecting Mauritius as well as countering any non-traditional security threats and constructing the influence from China coming into the country.

b. Economic Partnership

Mauritius being an island nation, has grown to be a nation with significant status after its independence in 1968. Being a small state, the country mainly depends on many sectors such as tourism, manufacturing, construction, financial services, and agriculture. Due to the shared history, India has been supporting Mauritius to achieve their targeted economic goals, and is one of the major players and drivers of Mauritius’ economy.

India’s support in successfully implementing several infrastructure projects, such as India-Mauritius Metro Express Project, New Supreme Court Building, New ENT Hospital, 956 Social Housing Units, and Educational Tablets, showcases the bond between the two countries developed over time and India has overall invested $1.1 billion in Mauritian projects (Government of India, 2025).

As Singh (2023) points out, Mauritius has emerged as a significant source of foreign direct investment (FDI) in India, and with the Double Tax Avoidance Agreement (DTAA) India aims to streamline taxation, reduce complexity, and gradually eliminate tax exemptions. By enhancing the taxation framework, India aims to create a fair and conducive environment for foreign investors while promoting economic growth and investment in the country. It is apparent that this has contributed to Mauritius' emergence as a significant financial hub in the global market.

Further strengthening bilateral economic ties, the two countries have also signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). The Comprehensive Economic Cooperation and Partnership Agreement (CECPA), signed in 2021, marked India’s first trade agreement with an African country. This agreement further solidified the bilateral relationship and paved the way for increased trade between the two nations. In the fiscal year 2021-2022, the total trade between India and Mauritius amounted to $ 786.72 million, with significant growth witnessed over the past 15 years (Singh, 2023). The CECPA encompasses a wide variety of areas, including Trade in Goods and Services, Rules of Origin, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) Measures, Dispute Settlement, Movement of Natural Persons, Telecom, Financial services and Custom procedures.

The initiatives demonstrate the effort by both countries to foster mutually beneficial economic cooperation. They also highlight how strategic partnerships like India and Mauritius can drive sustainable economic growth in their respective nations.

c. Technology Partnership

Within the technological parameters, India assists Mauritius in many ways, especially in people-centric digitalization. India has supported the implementation of the e-judiciary system, and digitization of archives and records at the Mahatma Gandhi Institute, strengthening cooperation in the field of ICT including cyber security, Digital Public Infrastructure, and capacity building for the same, and explore the implementation of successful digital tools developed by India, such as PM Gati Shakti digital platform, as per Mauritius’ requirements.

Similarly, since 1986, the Indian Space Research Organization (ISRO), India's national space agency, has operated a satellite tracking system in Mauritius which helps India guide its missions in space. The press release by the High Commission of India, in Port Louis, Mauritius (2009), states that ‘The Government of India may assist in the training of scientists and technicians, upon request from Mauritius, at various facilities under the Department of Space in the use of remote sensing data in applications relevant to Mauritius. Moreover, the Government of India may also provide, upon request, technical assistance for the establishment of a remote sensing cell or unit in Mauritius, selection of equipment and training of staff, and operationalization of the Station, and that a Mauritian scientist shall be attached to the TTC Station.’ This exhibits Indian presence in Mauritius for a considerable period. Thus, it can be noted that both countries share a genuine connection that expands in many areas.

d. Capacity Building

Strengthening bilateral relationships between the two countries, capacity building is one aspect that both these countries focus on. Capacity building encompasses many actors. For instance, Public Service and Administration, Diplomacy, Trade and Commerce, Finance, Infrastructure, and Health.

As reported by the India News Network (2024), during the visit to India in 2024, officials from both sides discussed opportunities for collaboration, particularly focusing on enhancing the administrative capabilities of Mauritian public officers through capacity-building programs and faculty development initiatives. Moreover, out of the 8 agreements that were exchanged between Mauritius and India in the recent visit in 2025, the two countries focused on other important aspects such as diplomacy, commerce, and trade. According to the Government of Mauritius (2025), an MoU was signed between the Sushma Swaraj Institute of Foreign Service in New Delhi, India, and the Ministry of Foreign Affairs, Regional Integration and International Trade of the Republic of Mauritius, for the exchange of information on the structure and content of training program for diplomats and another MoU between the Ministry of Industry, SME and Cooperatives and the Ministry of Micro, Small and Medium Enterprises of the Republic of India was signed to develop micro, small and medium enterprises in the respective countries.

In addition, the launching of India’s Unified Payments Interface (UPI) can be considered as one of the key steps in strengthening the banking and finance systems in Mauritius and it will also create not only a connection between the two countries but also trust. This new payment infrastructure will enable customers of participating banks to make seamless and secure payments both in Mauritius and in India. RuPay cards issued in Mauritius will be accepted at ATM and Point of Sales (POS) terminals in India, and Indians will be able to make UPI QR transactions at participating merchants in Mauritius. Commenting on this new payment service, the Governor of the Bank of Mauritius, Harvesh Kumar Seegolam, stated that "the launch of the RuPay and UPI linkage between Mauritius and India marks a significant milestone in our efforts to enhance financial connectivity and promote digital transactions. This collaboration will not only facilitate seamless and secure cost-effective payments for our customers but also strengthen the economic ties between our two nations." (Bank of Mauritius, 2024)

In terms of infrastructure, India has assisted in contributing to the implementation of several development projects in Mauritius. During the recent visit to Mauritius, both leaders agreed to work towards timely delivery of 100-electric buses and the associated charging infrastructure, implement Phase II of High Impact Community Development Projects, finalize discussions on the new Parliament building on a site to be identified by Mauritius, and conclude framework understanding to implement this project with India’s grant assistance, finalize discussion on the redevelopment of the Ganga Talao Spiritual Sanctuary and conclude framework understanding to implement this project with India’s grant assistance and explore new areas of development cooperation, as per the needs and priorities of Mauritius.

Apart from the above initiatives, the two countries have collaborated in the health sector as well. As reported by the Economic Times (2024), India launched their first overseas Jan Aushadi Kendra in Mauritius. Chandna (2024) noted that the scheme is promoted as an affordable medicines scheme by the Modi government where they offer generic drugs priced 50-90% lower than their branded counterparts in the market and Mauritius has shared a list of 16 therapeutic areas based on which the stock of drugs is being prepared such as cancer, anti-diabetic, antibiotics, nervous system, urology, painkillers, antifungal drugs, and supplements.

Conclusion

The connection between India and Mauritius dates back many decades, and from the examples mentioned, we can see how these two countries have developed and expanded their ties across many sectors. Like any other relationship, the connection between these two countries encounters challenges. For instance, there is a rise in geopolitical influence in the region, and balancing the interests of superpowers like the United States of America, the United Kingdom, and China is an important and challenging task not only for Mauritius but also for India. Consequently, maritime security threats and challenges will increase due to the region's importance and the strategic location of Mauritius.

Furthermore, there is a rise in non-traditional security threats globally, such as climate change and cybersecurity threats, that could jeopardize the sovereignty and territorial integrity of both countries. Additionally, balancing ethnic engagement within Mauritius, given its significant population of Indian origin, will affect decision-making by the government of Mauritius. Such challenges will arise from rapid regional and global changes, but it is the responsibility of both countries to reach a common agreement and work toward a shared vision for the future that brings mutually beneficial outcomes for both nations.

References

Angel One. (2024, May 11). India-Mauritius sign 8 MoUs covering banking, security, trade. Retrieved from https://www.angelone.in/news/india-mauritius-sign-8-mous-covering-banking-security-trade

Bank of Mauritius. (2024, February 12). Media Release: Mauritius and India Launch RuPay and Unified Payments Interface Linkage. https://www.bom.mu/media/media-releases/media-release-mauritius-and-india-launch-rupay-and-unified-payments-interface-linkage

BBC News. (2024, October 9). Mauritius country profile. Retrieved from https://www.bbc.com/news/world-africa-13882233

Firstpost. (2024, March 1). Mauritius Inaugurates New Airstrip Made by India | Vantage with Palki Sharma. [Video]. YouTube. https://youtu.be/Xq2WlhAVgpE?si=zu0-6fhKhvnewGBh

Firstpost. (2025, March 11). PM Modi in Mauritius: Why the Island Nation is Crucial to India | Vantage with Palki Sharma. [Video]. YouTube. https://youtu.be/902Tl5MIeco?si=oCYcxgavlcfl0mpi

Government of India. (2025, March 12). India-Mauritius Joint Vision for an Enhanced Strategic Partnership. https://www.pmindia.gov.in/en/news_updates/india-mauritius-joint-vision-for-an-enhanced-strategic-partnership/

Government of Mauritius. (2025). State Visit – Mauritius and India reinvigorate bilateral ties through exchange of MoUs. https://govmu.org/EN/newsgov/SitePages/State-Visit--Mauritius-and-India-reinvigorate-bilateral-ties-through-exchange-of-MoUs.aspx

High Commission of India, Port Louis, Mauritius. (2009, July 29). Signing of the Agreement on Co-operation for the Establishment of Telemetry, Tracking and Telecommand Station for Satellites and Launch Vehicles and for Co-operation in the Fields of Space Research, Science and Applications between India and Mauritius. 1 [Press release]. High Commission of India, Port Louis, Mauritius. Retrieved from https://hcimauritius.gov.in/press?id=zbq2d

High Commission of India, Port Louis. (2025, March 21). India Mauritius Bilateral Brief. Retrieved from https://hcimauritius.gov.in/pages?id=9avme&subid=yb8md&nextid=RdG7d

India News Network. (2024, September 26). India-Mauritius talks for capacity building programme: A step forward in bilateral cooperation. Retrieved from https://www.indianewsnetwork.com/en/20240926/india-mauritius-talks-for-capacity-building-programme-a-step-forward-in-bilateral-cooperation

Laskar R. (2024, March 13). India, Mauritius ink slew of pacts, upgrade def ties. Hindustan Times. https://www.hindustantimes.com/india-news/india-mauritius-ink-slew-of-pacts-upgrade-def-ties-101741804403822.html

Ministry of External Affairs, Government of India. (2025, March 12). India-Mauritius Joint Vision for an Enhanced Strategic Partnership. https://www.mea.gov.in/bilateral-documents.htm?dtl/39159

Ministry of External Affairs. (2025, March 12). India-Mauritius Joint Vision for an Enhanced Strategic Partnership. Retrieved from https://www.mea.gov.in/bilateral-documents.htm?dtl/39159/IndiaMauritius+Joint+Vision+for+an+Enhanced+Strategic+Partnership+March+12+2025

Padmaja, G. (2024, December 22). India and Mauritius cooperating to ensure collective maritime security. National Maritime Foundation. Retrieved from https://maritimeindia.org/india-and-mauritius-cooperating-to-ensure-collective-maritime-security/

Parashar, S. (2025, March 13). Sagar to Mahasagar: India upgrades Mauritius ties. The Times of India. https://timesofindia.indiatimes.com/india/sagar-to-mahasagar-india-upgrades-mauritius-ties/articleshow/118953086.cms

Rao, A. (2025, January 24). India clarifies tax treaties with Mauritius, Cyprus, and Singapore. India Briefing. Retrieved from https://www.india-briefing.com/news/india-clarifies-tax-treaties-with-mauritius-cyprus-and-singapore-35933.html/

Singh, A. (2023, May 30). India-Mauritius Partnership: Exploring Collaboration Opportunities for Mutual Growth. Invest India. https://www.investindia.gov.in/team-india-blogs/india-mauritius-partnership-opportunities-collaboration-and-growth

Sinha, A. (2024, June 30). When and why Indians migrated as 'new slaves' all over the world. The Times of India. https://timesofindia.indiatimes.com/when-and-why-indians-migrated-as-new-slaves-all-over-the-world/articleshow/111328608.cms

The Commonwealth. (n.d.). Mauritius. Retrieved March 23, 2025, from https://thecommonwealth.org/our-member-countries/mauritius

The Hindu. (2024, March 12). PM Modi receives Mauritius’ highest award. Retrieved from https://www.thehindu.com/news/national/pm-modi-receives-mauritius-highest-award/article69321371.ece

DIPLOMACY WITH A DIFFERENCE: Chile’s Bold Feminist Foreign Policy

By L. M. Sachini Navodya

Having begun with Sweden’s introduction of the world’s first explicit feminist foreign policy (FFP), which was initially met with “giggles” and doubt, FFPs have gained significant traction in contemporary global affairs. A foreign policy of a country is generally how a country conducts its relations with other countries in the world. ‘Feminist’ derived from the theory of feminism refers to the stance of advocating for political, economic and social equality of all genders. An ideal working definition for an FFP would thus be a:

...policy of a state that defines its interactions with other states and movements in a manner that prioritizes gender equality and enshrines the human rights of women and other traditionally marginalized groups, allocates significant resources to achieve that vision and seeks through its implementation to disrupt patriarchal and male-dominated power structures across all of its levels of influence (aid, trade, defense and diplomacy), informed by the voices of feminist activists, groups and movements.” (Clement & Thompson, n.d., p. 7)

This article thus offers an overview of the Chilean FFP.

Chile’s Feminist Foreign Policy Framework

In March 2022, the government of Gabriel Boric announced its shift towards adopting a feminist foreign policy. This was followed by the official presentation of Chile’s FFP by Minister Alberto van Klaveren, the Under Secretary of Foreign Affairs, Gloria de la Fuente and the Under Secretary of International Economic Relations, Claudia Sanhueza.

As an extension of the government’s emphatic focus on human rights, the novel policy attempts to establish gender equality as a guiding principle in the work arena of the Foreign Affairs Ministry instead of merely relegating the responsibility to smaller departments. Often known as a ‘living document’, the FFP was portrayed by the Gloria de la Fuente “as a strategy of international insertion in accordance with the challenges posed by the global agenda” (Ministry of Foreign Affairs of Chile, 2023, para. 2).

With progressive track record of gender mainstreaming with initiatives such as: the inclusion of gender related clauses in trade agreements; establishment of a feminist government with 14 ministers, out of the 24, being women, and the 2020 Global Trade and Gender Agreement (GTAGA) between Chile, Canada, New Zealand, Columbia, Mexico and Peru, as depicted in Figure 01, the policy promotes participation, inclusion, transversality and intersectionality under the 8 priority themes of: Strengthening Democracy; Empowerment and Representation; Women, Peace and Security (WPS); Trade and Gender; Climate Change; Science; Technology and Innovation; and Healthcare (The Gender Security Project, n.d.):

Figure 01 Chilean Feminist Foreign Policy Framework

Note. The image is an AI generated image portraying the four areas promoted by the Chilean FFP and the 8 priority themes.

According to the Gender Security Project (n.d.), the policy becomes participatory and inclusive since it recognizes that gender gaps are obstacles for democracies and therefore should be designed in a way that it benefits each and everyone. It becomes transversal since it aims to make the approach to gender equality a norm that would lead all areas of work and engagement of the Foreign Ministry. Furthermore, it becomes intersectional, since it recognizes the structural violence and the impact of overlapping identities that exist in the interactions between various genders in varying contexts.

What measures have been taken to put the policy into practice?

Various measures have been initiated at the institutional level to ensure that the benefits of the gender-sensitive framework would extend from the local institutional level to the international level. Portraying progressive signals of a successful policy implementation, it established monitoring and evaluation mechanisms to weigh the outcomes of the measures taken. Having recognized the flaws of predecessors who had adopted feminist foreign policies without follow-up mechanisms, a Gender Affairs Division was established by the Foreign Ministry to oversee the implementation of the policy.

In addition, Chile also dedicated a website to track the progress while ensuring regularly updated information and explanatory materials and clearly communicated monitoring mechanisms.

The Minister further signed the Memorandum of Understanding on Gender Equality Seal for Public Institutions of the United Nations Development Program (UNDP), which seeks to establish a framework for collaboration in this area. As a part of this cooperation the action plan would be resumed following the identification of the gender gaps existing within the institution. As the final phase of the program, a certification will be issued after the final evaluation recognizing the Under Secretariat as one conforming with the gender equality standards which acts as a cornerstone for the success of the FFP.

Efforts have also been extended to increase the count of women in embassies while acknowledging that the feminist foreign policy agenda extends beyond numbers (Winter, 2023). Furthermore, for the purpose of ensuring the continuity of the policy while promoting greater women’s participation in decision-making spaces, the policy has also proposed the establishment of an Advisory Committee of Experts which will provide strategic advice to the authorities to reach progress on parity by 2030.

Why is the Chilean FFP significant?

With its feminist policy, Chile has become the first South American country to have adopted an FFP. Apart from this, several historical and structural factors portray the significance of the policy. With a history of being governed by conservative and centrist parties which resisted progressive gender policies and even left-leaning administrations often contesting such policies and its history of authoritarianism with the military dictatorship of Pinochet that involved severe suppression of women, it is surprising for a left-wing government to push for gender mainstreaming at an international level.

The FFP is also a significant departure from the country's conservative backdrop with the Catholic church having a strong influence on Chilean politics and society, particularly on abortion and reproductive rights. It is also a departure from the strong machismo culture in Chilean society with the persistence of gender-based violence, wage gaps and limited political representation of women.

The adoption of the feminist policy is also a shift from Chile’s traditionally pragmatic and trade focused foreign policy which prioritized economic interests over social justice. This shift thus suggests a redefinition of national priorities, emphasizing human rights and gender justice alongside trade and diplomacy.

What challenges lie ahead for the Chilean FFP?

Despite the progressive efforts, the Chilean FFP also faces certain obstacles. Chile would have to face challenges in the implementation of the policy when conducting its trade and diplomacy with non-feminist regimes like China and West Asian nations with which it has strong economic ties.

Furthermore, given Chile’s unsatisfactory gender equality status in the domestic arena especially in relation to high rates of femicide, wage gaps and lack of comprehensive reproductive rights, there lies a possibility of the creation of a policy paradox when advocating for feminist principles in its foreign policy. This scenario is furthermore highlighted with the statement of the Under Secretary Gloria de la Fuente which emphasized that despite the progress achieved overtime, the rate of women ambassadors in 2023 was only 30% (Winter, 2023), far from reaching parity.

The policy could also face backlash from conservative segments ranging from the opposition parties to businesses to the general public who believe feminist policies to be ideological rather than strategic.

In addition, given the inconsistency of many global FFPs which were criticized for being symbolic rather than substantive, Chile has the challenge of proving its commitment, ensuring that its foreign policy is not just a statement but a long-term actionable strategy supported by resources and institutional reforms.

Chile’s FFP thus marks a bold redefinition of national priorities, positioning gender equality as a fundamental pillar of diplomacy. By embedding feminist principles into international engagement, Chile is not only challenging its own historical and structural constraints but also setting a precedent for other nations. However, the success of this policy depends on its resilience against both domestic and international resistance. Its true impact will be measured by its ability to sustain long-term institutional change, bridge the gap between rhetoric and action, and navigate global complexities while maintaining its commitment to gender justice. If Chile succeeds, it will not only transform its own diplomatic landscape but also inspire a new global standard for inclusive and equitable international relations.

References

Ministry of Foreign Affairs of Chile. (2024, March 4). Ministry of Foreign Affairs presents Chile’s feminist foreign policy and announces new ambassadors. https://www.minrel.gob.cl/news/ministry-of-foreign-affairs-presents-chile-s-feminist-foreign-policy-and

The Gender Security Project. (n.d.). Feminist foreign policy – Chile. https://www.gendersecurityproject.com/feminist-foreign-policy-countries/chile

Thompson, L., & Clement, R. (2019). Defining feminist foreign policy. International Center for Research on Women. https://www.icrw.org/wp-content/uploads/2019/04/ICRW_DefiningFeministForeignPolicy_Brief_Revised_v5_WebReady.pdf

Winter, B. (2023, December 19). A spotlight on Chile’s feminist foreign policy. https://www.americasquarterly.org/article/a-spotlight-on-chiles-feminist-foreign-policy/

FROM DIPLOMACY TO DEVELOPMENT: Decoding Sri Lankan President Dissanayake’s UAE Visit

By Sachin Hassim

Sri Lanka and the United Arab Emirates (UAE) have maintained strong diplomatic and economic ties since the establishment of formal relations in 1979. Over the decades, both nations have engaged in high-level visits and signed numerous agreements and MOUs, fostering collaboration across various sectors. The UAE has consistently supported Sri Lanka during critical periods, such as the conflict with the LTTE and the tsunami aftermath, providing emergency aid and assistance to strength Sri Lanka's economic resilience.

Impact of the New Leftist Government

Sri Lanka elected Anura Kumara Dissanayake as its 9^th President on 21^st September 2024, ushering in a new chapter in Sri Lanka, which would undoubtedly impact foreign relations. As the first leftist President, he has tried to be saner and more prudent in foreign policy, such as expansion of strategic alliances, economic recovery and partnerships. Regarding the UAE as a key player in Sri Lanka’s development journey, his administration sought to expand diplomatic and commercial relations beyond conventional partners.

President Dissanayake visited the United Arab Emirates on the invitation of President Mohamed bin Zayed Al Nahyan from February 10–13, 2025. The visit included attending the World Government Summit 2025 which provided him a significant opportunity to discuss high-level bilateral issues, highlight Sri Lanka's economic vision, and look into new investment prospects.

The focus of discussions with the UAE leadership was trade, tourism, and investments, to align with the country's broader strategy of attracting foreign direct investment and forging economic partnerships. The visit put a spotlight on renewed engagement with Middle Eastern economies in highly desirable sectors, ranging from infrastructure, energy, and financial services. Sri Lanka, within the new government, views the ongoing diplomatic outreach to the UAE as a pragmatic, forward-looking effort ensuring that bilateral ties are reinforced in support of the country’s longer-term development objectives.

Key Highlights of President Dissanayake’s UAE Visit

·         Speech at the World Government Summit

Dissanayake’s speech at the World Government Summit 2025 was a pivotal moment in reestablishing Sri Lanka on the international stage under the new leftist administration. In a speech to world leaders, policy makers and industry experts, he stressed the importance of multilateral governance to the issues of global economic disparities, climate change and technological change.

Dissanayake highlighted that it is imperative that countries work together across borders as they tackle significant global issues. Whether it was climate change or economic instability or the disruption of rapid technological advancement, he argued persuasively for nations working in unison rather than isolation. His vision illuminated that in an interconnected world, no country, large or small, can afford to do it alone.

The importance of equal economic policies that empower developing countries was a major focus of his speech. According to Dissanayake, rising economies need fair access to financial resources, trade opportunities, and technical breakthroughs in order to achieve true global stability. He urged world leaders to make sure that the base of global economic frameworks continues towards sustainable growth.

·         High Level Bilateral Meetings

An important turning point in Sri Lanka-UAE ties was reached when Dissanayake met with Sheikh Mohammed bin Rashid Al Maktoum, the UAE's vice president and prime minister, beginning in a new era of diplomatic and economic cooperation. Dissanayake encouraged investors based in the United Arab Emirates to take advantage on Sri Lanka's new leftist government's economic recovery plan during the discussions, which centered on economic regeneration. A major item on the agenda was trade and export clients, with both presidents looking into strategies to increase Sri Lanka's exports of tea, clothing, seafood, and gemstones to the United Arab Emirates.

The discussions also focused on the growth of tourism, utilizing Sri Lanka's natural beauty and rich cultural legacy to attract more tourists from the United Arab Emirates. The signing of the Sri Lanka-UAE Investment Protection Agreement on February 12, 2025, was a significant outcome of this summit. Stronger legal protection for investors from both nations is provided by this agreement, which is anticipated to increase trust in important areas like digital economy initiatives, renewable energy, and tourism infrastructure. This renewed cooperation creates a solid foundation for mutual prosperity and sustainable progress by cultivating long-term business partnerships.

·         Strengthening Relations across the World via Bilateral Meetings

In addition to the relations between Sri Lanka and UAE, Dissanayake met prominent world leaders at the World Government Summit 2025 to bring attention to economic growth and diplomatic relations strategy of Sri Lanka. During their meeting, Pakistan’s Prime Minister Shehbaz Sharif and Dissanayake concentrated on the South Asian Association for Regional Cooperation (SAARC), the Organization for Islamic Cooperation (OIC) and member nations bilateral trade relationships and how to enhance these economic relations.

In the meeting with the Kuwaiti Prime Minister Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah, Dissanayake brought attention to the need for better regulation of over 120,000 Sri Lankan expatriate employees in Kuwait and discussed with Al-Sabah how to improve social welfare and job opportunities for participants. Similarly, his discussion with Vietnam’s Deputy Prime Minister and Foreign Minister focused on expanding trade in agriculture, seafood, and textiles, promoting tourism through direct flight connectivity, and deepening investment partnerships for mutual economic progress.

The meeting with former UK Prime Minister Tony Blair, revolved around technical knowledge in agriculture, climate resilience, and governance changes. Blair emphasized international support for Sri Lanka's progressive policy agenda by pledging to send a team of experts to the country to help with sustainability and economic development projects. Through these meetings, Sri Lanka maintains its position as an active participant in international diplomatic and economic issues, guaranteeing sustained expansion and strategic partnerships.

·         Partnerships in Business and Technology: Bringing International Investments

Dissanayake met the CEOs from global tech companies such as Roblox, Oracle, Alibaba, and Dow Jones, highlighting Sri Lanka's dedication to innovation-driven development and digital transformation. He acknowledged the transformative impact of technology in propelling economic progress. In the meantime, talks with Roblox centered on digital innovation projects and AI-driven education initiatives, establishing Sri Lanka as a potential participant in the digital economy. Dissanayake discussed the implementation of AI-powered public sector reforms in his discussions with Oracle, with the goal of improving efficiency and governance via technology.

By establishing these partnerships, Sri Lanka is actively establishing its future as a regional center for technology, utilizing innovation to provide job and economic possibilities and promote long-term digital development.

A Milestone Visit for Sri Lanka’s New Foreign Policy

A significant change in Sri Lanka's foreign policy under the new leftist government happened with Dissanayake's visit to the United Arab Emirates. This visit adopted a bold, varied approach, bolstering relationships with the Middle East, Southeast Asia, and international business leaders, in contrast to previous strategies that mostly relied on traditional alliances. The message was obvious: Sri Lanka welcomes investment, cooperation, and innovation.

What’s Next?

By using foreign relationships to stabilize the economy, draw in investors, and open up new opportunities for its citizens, this visit has established a strong foundation for Sri Lanka's economic recovery. Sri Lanka is forging a new direction in diplomacy under Dissanayake's guidance, one that promotes innovation, inclusivity, and sustainability. The world is currently watching as Sri Lanka reshapes its destiny on the international scene due to the inspiration provided by this historic visit.