U.S. – SRI LANKA ENGAGEMENT: Reviewing Robust Relations

By Indoosan Shanthakumaran

In recent years, the relationship between the United States and Sri Lanka has witnessed a substantial transformation, transitioning from conventional foreign aid to a more comprehensive partnership that encompasses economic, environmental, and human rights initiatives to help Sri Lanka come out of the bankruptcy. The United States supported Sri Lanka's development objectives, reconciliation efforts, and regional connectivity through multifaceted collaborations between 2022 and 2024. This article investigates the numerous methods by which the United States assisted Sri Lanka in its development, resulting in enduring effects that surpass financial aid.

Fostering Economic Growth and Governance

The United States Agency for International Development (USAID) signed a defining five-year Development Objectives Assistance Agreement (DOAG) with Sri Lanka in 2022. This agreement facilitated market-driven growth, environmental sustainability, and improved governance. The U.S. actively supported stabilization efforts in Sri Lanka, including aiding in debt restructuring processes and supporting Sri Lanka's engagement with the International Monetary Fund (IMF), in recognition of the country’s economic challenges. By means of these initiatives, the United States promoted private-sector investment, anti-corruption measures, and reforms that are indispensable for long-term economic resilience, transcending financial assistance.

Investing in Sri Lanka

U.S. companies exhibited a fluctuating yet substantial interest in investing in Sri Lanka from 2022 to 2024. The total stock of US Foreign Direct Investment (FDI) in Sri Lanka was valued at $234 million in 2022. IFS (Industrial and Financial Systems), an IT services firm based in the United States, has maintained a substantial presence in Sri Lanka for many years. The company has recently declared its intention to expand its operations in Colombo, citing the country’s highly skilled tech workforce. In that year, the total U.S. Foreign Direct Investment (FDI) stock in Sri Lanka reached $234 million as a result of this expansion. Despite the country's economic instability at the time, several U.S. apparel brands, including Gap and Nike, increased their procurement from Sri Lanka in 2023. However, direct FDI in new facilities was cautious. Nevertheless, Coca-Cola Beverages Sri Lanka Ltd and other organisations maintained their operations and implemented sustainability initiatives, suggesting that there was a persistent interest.

Investor confidence began to slightly improve by 2024 as Sri Lanka made progress in debt restructuring and economic stabilisation. This prompted smaller U.S. tech startups and healthcare companies to investigate joint ventures and partnerships with local firms. Sri Lanka's greatest export market was the United States, despite the fact that it experienced a severe financial crisis in 2022, which resulted in a contraction in GDP and shortages of essential goods.

Foreign investment in Sri Lanka was approximately $730 million in 2023, despite the fact that it was historically lower than that of other comparable countries. The International Development Finance Corporation (DFC) of the United States has allocated up to $553 million in financing for the expansion of the Colombo West International Terminal. This commitment indicates the government's confidence in the private sector's development in Sri Lanka.

The Sri Lankan government’s emphasis on anti-corruption measures and political changes resulted in a notable resurgence in US investment interest by late 2024. The American engineering technology group Transdigm Group invested $8.5 million in a joint venture to establish a manufacturing facility in Sri Lanka, thereby relocating its SHIELD operations from China. This investment is a notable example. This action was perceived as a testament to the increasing interest of the United States in investing in Sri Lanka, particularly in light of the government's initiatives to enhance the investment climate and guarantee transparency. The US Ambassador to Sri Lanka emphasised the potential for additional manufacturers to contemplate similar actions if the investment climate continues to improve.

Infrastructure Development

The West Container Terminal at the Port of Colombo, which is being developed with the support of the U.S. International Development Finance Corporation (DFC), is a significant milestone in Sri Lanka's infrastructure investment. This initiative is intended to establish the port as a regional connectivity hub, with a $553 million investment. This initiative not only reinforces Sri Lanka's strategic position in global trade but also significantly stimulates the local economy by improving the port’s capacity and efficiency.

It is anticipated that this investment will generate employment opportunities in a variety of sectors, including logistics and construction, and will also stimulate economic activity. Furthermore, it enhances Sri Lanka's capacity to manage an increase in maritime traffic, thereby guaranteeing its continued competitiveness in the increasingly critical Indian Ocean shipping lanes.

Climate Change and Environmental Collaboration

Sri Lanka has established an ambitious objective of generating 70% of its electricity from renewable energy sources by 2030. The United States has provided technical expertise and funding for renewable energy projects, such as solar and wind energy initiatives, in order to support this objective. Sri Lanka is committed to achieving carbon neutrality by 2050. The United States has collaborated with Sri Lanka to establish strategies and frameworks for the reduction of greenhouse gas emissions in various sectors, including energy, transport, and agriculture.

The Global Climate Promise Exchange Workshop was held in Sri Lanka in March 2024, with the assistance of the United Nations Development Programme (UNDP) and Japan. The event convened 16 countries to exchange best practices and lessons learnt in the implementation of climate commitments under the Paris Agreement. Sri Lanka initiated an initiative in August 2024 to create its inaugural Biennial Transparency Report in accordance with the Paris Agreement. The initiative, which is backed by the Global Environment Facility and UNDP, is designed to improve transparency and accountability in climate action by monitoring the progress of national climate commitments. USAID sponsored the ‘Climate Challenge SL’ hackathon in late 2024, which aimed to encourage data professionals to create innovative, data-driven solutions for climate-related issues in agriculture and fisheries.

The objective of the event was to promote collaboration and employ technologies such as AI and IoT to address climate resilience challenges. A climate adaptation initiative that prioritised agriculture, fisheries, and tourism was implemented in September 2024 through a partnership between USAID and SDB Bank. The objective of this initiative is to strengthen governance and promote market-based growth in order to increase the ability of the private sector, civil society, and government to address climate change.

The project involves the creation of financial products that are specifically designed to meet the requirements of climate adaptation and the development of resilience in vulnerable communities. Ceylon Cold Stores PLC entered into a partnership with USAID's Ocean Plastics Reduction Activity in October 2023 to establish Sri Lanka's inaugural women-led plastic recycling network. To foster economic resilience and environmental stewardship, the initiative empowers women from coastal communities to acquire and process recyclable materials. The programme had collected more than 1,175 kilos of plastic waste by 2023.

Promoting Human Rights and Reconciliation

The United States has implemented proactive measures to advocate for Sri Lanka’s reconciliation and human rights protection. This engagement has been instrumental in assisting the nation in its recovery from the repercussions of a decades-long civil conflict and in confronting the underlying issues that are necessary to establish a more inclusive and peaceful society.

The United States has consistently underscored the significance of accountability for historical human rights violations, urging Sri Lanka to investigate and address alleged abuses that occurred during and after its civil conflict. The United States has promoted independent investigations to ensure justice for victims and their families through bilateral discussions and international forums such as the United Nations Human Rights Council (UNHRC).

The United States has provided support for constitutional reform efforts in Sri Lanka, acknowledging the significance of political reforms in promoting inclusivity. These reforms are intended to address concerns such as the devolution of power, minority rights, and the establishment of mechanisms that account for the aspirations of all communities in the country.

The United States has collaborated with Sri Lankan institutions, such as the judiciary and law enforcement, to improve their ability to address human rights concerns through programs and seminars. This encompasses instruction on the preservation of international human rights standards, investigative techniques, and legal procedures.

The United States has maintained robust relationships with Sri Lanka's civil society organisations, offering them resources and platforms to elevate the voices of marginalised groups and promote reform. This encompasses assistance for community-based initiatives that emphasise education, social cohesion, and reconciliation.

The United States has actively promoted inter-religious and inter-ethnic dialogue in Sri Lanka. The U.S. has promoted grassroots initiatives that promote understanding and cooperation among diverse communities, thereby reducing tensions and establishing trust.

The United States’ dedication to assisting Sri Lanka in its pursuit of a more equitable and harmonious future is underscored by these endeavours. The partnership endeavours to guarantee that peace, justice, and inclusivity are ingrained in the social and political fabric of Sri Lanka by confronting the underlying causes of conflict and advocating for systemic change.

Strengthening People-to-People Exchanges

The two nations have been able to cultivate mutual understanding and benevolence through cultural and educational exchanges. The United States has implemented initiatives that fortify relationships, empower youth, and advance shared principles of democracy, diversity, and innovation.

The United States has been instrumental in fostering Sri Lanka's growth and stability from 2022 to 2024, through economic investments, environmental initiatives, and human rights advocacy. The United States has assisted Sri Lanka in overcoming obstacles and establishing the groundwork for regional cooperation and sustainable development by emphasising multifaceted partnerships. The power of cooperation in addressing urgent global and national issues is demonstrated by the partnership’s ongoing evolution.

CHINA – SRI LANKA RELATIONS: A New Chapter Opened in 2025

By Tharushika Peelikumbura and Yohan Soyza

In September 2024, Sri Lankans experienced a significant political shift in the country. 76 years of governance led by the United National Party, the Sri Lanka Freedom Party and its alliance, and later the Sri Lanka Podujana Peramuna, were rejected by the public. The National People’s Power won the presidential and parliamentary elections within two months. With that a new era of Sri Lankan politics began, and this article attempts to focus on a new era in China-Sri Lanka bilateral relations.

Newly elected Sri Lankan President Anura Kumara Dissanayake paid a four-day state visit to the People’s Republic of China from 14 to 17 January 2025. The Minister of Foreign Affairs, Foreign Employment, and Tourism, Vijitha Herath, the Minister of Transport, Highways, Ports, and Civil Aviation, Bimal Rathnayake and the Director General of Government Information, H. S. K. J. Bandara were seen joining the visit with Dissanayake. The four-day state visit included meetings with Chinese President Xi Jinping, Premier Li Qiang and Chairman of the Standing Committee of the National People’s Congress of China Zhao Leji and others. The visit was significant for the relations between the two countries as the Sri Lankan delegation met high-ranking members from the Chinese Communist Party, signaling increased cooperation in the future.

Key Diplomatic Objectives

1. Reaffirmation of the One China Policy

During his visit to the People’s Republic of China (PRC), President Dissanayake reaffirmed Sri Lanka’s continuous support for the One China Policy, recognizing the PRC as the only legitimate China that exists. He also assured his commitment not to allow Sri Lanka’s territory to be used for any anti-Chinese activities. This stance is aligned with Sri Lanka’s strong diplomatic relations with China since the 1950s (Kuruwita, 2025), and stronger than ever before since President Mahinda Rajapaksa’s time in the office from 2005 to 2015.

2. Strengthening Economic and Strategic Ties

This state visit aimed to strengthen strategic and economic ties between the two nations. Several agreements were signed to advance the Belt and Road Initiative (BRI) projects, strengthen trade and investment, and promote cooperation in areas such as education, climate action and agriculture. China also pledged to support Sri Lanka’s debt restructuring efforts and encourage investments in areas such as green development and logistics (Kuruwita, 2025; Xinhua, 2025).

Both parties emphasized the importance of the cultural ties as mentioned in the joint statement between China and Sri Lanka, released in January 2025. Education and research were seen as significant opportunities to enhance cultural ties, as both parties promised to encourage more exchanges of students, teachers and researchers. China stated they welcome committed Sri Lankan students to pursue higher studies in China by providing them government scholarships, which will be a great chance for Sri Lankan students who wish to pursue their higher studies in a foreign university. China will also work with Sri Lanka to implement the Luban Workshop to create more professionals through vocational and technical training in Sri Lanka (Joint Statement between China and Sri Lanka, 2025)

3. Positioning within Global South multilateral frameworks

China and Sri Lanka emphasized global development initiatives and multilateralism. Both countries agreed to support each other by strengthening coordination and cooperation within large multilateral bodies like the United Nations Organization (UNO), and also to give focus on global issues such as climate change (Xinhua, 2025). Sri Lanka also seeks to leverage China’s BRI for development purposes and navigate risks in debt and regional power dynamics. The BRI is a great opportunity for Sri Lanka to enhance its network and connect with other partnering countries of the BRI.

Strategic Cooperation Areas

1. Development in Infrastructure

A major area of cooperation between the two countries includes infrastructure development, which is mainly led by the BRI. Notable projects in Sri Lanka include the Colombo Port City project and Hambantota Port. These projects can play a crucial role in Sri Lanka’s economic development and turn the island nation into a regional hub of business, transportation and maritime logistics if managed properly (Kuruwita, 2025; Xinhua, 2025). Table 1 provides an overview of the current ongoing Chinese projects in Sri Lanka.

2. BRI Project Advancement

The state visit also highlighted the importance of continuing BRI projects in Sri Lanka. China promised strong support for Sri Lanka’s economic development, sovereignty, and independence. Both countries also signed 15 new agreements covering areas including economic development, education, media, culture, infrastructure, agriculture, digital economy, and marine economy. President Xi emphasized the importance of fostering new highlights and high-quality cooperation within the BRI while building a community of shared future with Sri Lanka. In response, Sri Lanka pledged to further deepen regional connectivity and welcome more Chinese investments. This collaboration also includes infrastructure development and other forms of multilateral cooperation addressing climate change, demonstrating the expanding scope and depth of bilateral relations (Desheng, 2025).

3. Investment in Maritime Infrastructure

Sri Lanka and China have multiple agreements on developing maritime infrastructure under the BRI projects. These projects include Hambantota International Port (HPI), aiming to make Sri Lanka a major maritime hub in the Indian Ocean Region by providing services such as port, energy, marine and port investment (Hambantota International Port Group, n.d.). The project also aims to create job opportunities that are estimated at around 50,000. However, since 2017, Sri Lanka has leased the port for 99 years to China Merchants Ports Holding Company (CMPort) in a debt-for-equity swap deal. Therefore, Sri Lankan decision-makers should work carefully and maintain high standards to maximize the benefits currently earning.

The Colombo Port City Project is another key project located on reclaimed land from the sea. The project is handled by the China Harbour Engineering Company (CHEC) (CHEC Port City Colombo (Pvt) Ltd - Sri Lanka, n.d.). The China Merchants Ports Holding Company (CMPH) operates the Colombo International Container Terminals (CICT) as a joint venture company with the Sri Lanka Port Authority (SLPA). The CICT is the only deep-water port in South Asia at the moment, and they also aim to increase the capacity of the terminal and manage the container traffic (Details Business Areas, 2018).

4. Economic Collaboration

This includes increasing trade and investment, promoting agricultural cooperation, and developing digital economy partnerships, as it is one of the fastest-developing sectors globally, contributing over 15% to global GDP (Wignaraja and De Zylva, 2018). China has also agreed to assist Sri Lanka in debt restructuring, education, tourism development, logistics and green development (Kuruwita, 2025). China is also focusing on a free trade agreement (FTA) with Sri Lanka, as they already reached one recently with the Maldives (Shivamurthy, 2025).

5. $3.7 billion Sinopec Oil Refinery Project in Hambantota

As a major point of President Dissanayake’s 2025 visit to China, both nations agreed to a $3.7 billion oil refinery project in Hambantota, Sri Lanka. Sinopec will lead this project as decided after a bidding process. This step indicates a shift towards partnerships based on investment rather than financial loans (Moramudali and Chen, 2025).

6. Renewal of Currency Swap Agreement

During the state visit two nations agreed on a currency swap renewal. This is a pivotal point of Sri Lanka’s debt restructuring and economic stabilizing process, and it will also enhance economic cooperation between the two old friends (Kuruwita, 2025).

7. Expanding Trade and Investment

Both countries are highly focused on expanding trade and investment to provide a more friendly business atmosphere for Chinese enterprises in Sri Lanka. Digital transformation, green development, and logistics are the main aspects to be focused on (Kuruwita, 2025; Xinhua, 2025)

Table 1 above indicates that China’s main focus on infrastructure projects in Sri Lanka was mainly on roads, airports, seaports, energy, the telecommunication sector and water supply projects. By investing in such infrastructure projects, China created interdependencies and leveraged them significantly. Sri Lanka, as a strategic point in the Indian Ocean, could be pivotal for China to ensure its regional power balance in South Asia. But during the civil war times, China emerged as a major donor and development partner (Shivamurthy, 2025), proving China’s caring role for Global South partners. The authors assume that providing development assistance is not just a strategic step, it is also a significant priority of uplifting the global south partners while developing itself, as China is doing. If the public could understand this with an open mind, this might be seen as a positive opportunity to develop the country.

What is important is that the Sri Lankan policymakers need to carefully manage Chinese development loans to gain the maximum benefits. In this case, transparency is very important as the government officials are responsible for every decision they take on behalf of the public, and the decisions need to be transparent to the public. Evaluating and reporting each project is also crucial as they can be used to plan future projects carefully.

Geopolitical Context

As President Anura Kumara Dissanayake sets out on a strategic partnership with China, the geopolitical context surrounding this initiative cannot be overlooked. The Indian Ocean remains significant for international relations, and Sri Lanka's geographical position makes it a critical player in the balance of power among regional powers. Sri Lanka must therefore navigate its aspirations cautiously, serving both its national interests and the demands of powerful neighbouring countries.

1. Balancing Relations with Regional Powers

By reaffirming its ties with China, Sri Lanka finds itself seeking a delicate balance between India and China, two strong neighbours. Sri Lankan leadership often emphasizes the need for a non-aligned foreign policy, which allows it to engage with both nations without compromising its sovereignty. A diplomatic quote that describes this approach is from Dissanayake himself in which he notes that "We thrive best when our partnerships create opportunities for all parties involved." (Deccan Herald, 2025).

2. Strategic Positioning in the Indian Ocean

The Indian Ocean is becoming increasingly significant for trade routes and military presence. Sri Lanka's decision to strengthen ties with China under the Belt and Road Initiative (BRI) will likely enhance its strategic location in the region. China’s investments in maritime infrastructure aim to secure its maritime silk route, while Sri Lanka benefits from development and trade opportunities (Ministry of Foreign Affairs of China, 2025). The growth in maritime infrastructure could lead to increased ship traffic through the Colombo harbour, thereby significantly boosting the Sri Lankan economy (Global Times, 2025).

3. Diplomatic Support in International Forums

In the face of global challenges, Sri Lanka's collaboration with China also opens avenues for diplomatic backing in international forums. China's weight in the United Nations and other multilateral organizations provides an opportunity for Sri Lanka to express its interests more clearly (Sunday Times, 2021). This collaboration may come in the form of backing during discussions related to climate change, economic development, and regional security matters, aligning with China's global objectives while benefiting Sri Lanka’s international standing.

Recommended Policy Actions

For Sri Lanka to fully gain the benefits of its deepening relationship with China, several policy actions have been highlighted by scholars and policy institutes. Firstly, diversifying economic partnerships is essential. While Chinese collaborations offer significant opportunities, overdependence poses long-term risks. Strengthening ties with ASEAN countries, the European Union, and India can enhance economic resilience and geopolitical balance (Observer Research Foundation, 2025). Secondly, leveraging Chinese investments strategically can catalyze broader development. Beyond infrastructure, Sri Lanka can use these investments to expand sectors like energy, technology, and manufacturing, provided the projects are managed with transparency and long-term sustainability in mind (Global Times, 2025). Thirdly, maintaining diplomatic flexibility is crucial. A dynamic foreign policy that balances relations with both China and India, while promoting regional multilateralism, can help Sri Lanka navigate shifting geopolitical dynamics (Gateway House, 2025).

Amidst these high-level strategies, several modest yet impactful actions remain underutilized. One such initiative is the formation of an independent Foreign Investment Impact Assessment Taskforce, including members from civil society, academia, and business, to review and publicly brief on major bilateral projects, thereby increasing transparency and public trust. Additionally, bilingual digital dashboards that track project progress, financial flows, and social outcomes could facilitate data-driven adjustments and citizen engagement. The government could also embed policy nudges into contracts, such as local hiring quotas, incentives for technology transfer, and environmental safeguards, all achievable without extensive legislative overhaul. Finally, introducing foreign policy literacy modules in secondary education would help cultivate a more informed and globally aware generation. These grassroots-oriented actions are low-cost, culturally resonant, and politically feasible, yet they often remain sidelined in favor of grand diplomatic visions.

Potential Challenges

While the prospects of deepening relations with China appear promising, several well-documented challenges must be carefully managed. First, navigating regional power dynamics is crucial, as tensions between China and India over territorial disputes continue to escalate. Sri Lanka must tread carefully to avoid being drawn into broader geopolitical rivalries (Foreign Policy, 2024). Second, ensuring balanced international relations is vital. Strengthening ties with China should not come at the expense of alienating other key international partners, and a nuanced foreign policy is required to maintain this equilibrium (Deccan Herald, 2025). Third, the issue of maintaining economic sovereignty remains pressing. The influx of Chinese investments, while beneficial in the short term, may compromise Sri Lanka’s long-term control over strategic sectors unless protective mechanisms are in place (Chatham House, 2020).

Beyond these widely acknowledged strategic concerns, Sri Lanka also faces a set of more localized, systemic challenges that could quietly erode the benefits of foreign engagement. Entrenched bureaucratic inefficiencies often stall the implementation of large-scale agreements, regardless of high-level diplomatic progress. Additionally, the politicization of foreign investments, where projects become mired in domestic party politics, can cause mismanagement, public opposition, or abandonment. Another underappreciated challenge is the limited institutional capacity to enforce environmental, labor, and transparency standards in megaprojects funded by foreign entities. This gap can lead to exploitation, unequal benefits, and environmental harm. Furthermore, low levels of public awareness regarding the long-term implications of international partnerships hinder civic engagement and accountability. If left unaddressed, these domestic vulnerabilities risk undermining even the most strategically sound bilateral initiatives.

Conclusion

The strategic visit of President Anura Kumara Dissanayake to China marked a significant milestone in the evolution of China-Sri Lanka relations. By deepening cooperation across multiple areas, reaffirming key diplomatic objectives, and maintaining a proactive diplomatic stance, Sri Lanka is poised to enhance its standing in the regional and global arena.

The evolving partnership between Sri Lanka and China presents a landscape rich with opportunity, but not without complexity. As strategic initiatives continue to deepen bilateral ties, Sri Lanka must remain vigilant in safeguarding its economic sovereignty, institutional integrity, and regional balance. The recent political transition signals a willingness to reset foreign policy priorities, but genuine success will depend not only on high-level diplomacy but also on transparent governance, inclusive development, and civic accountability.

In this significant chapter of its international engagement, Sri Lanka has the chance to reshape its role in the Indo-Pacific and the Global South. Whether it emerges as a strategic bridge or becomes strategically bridged over will depend on how well it can balance cooperation with caution, vision with vigilance. And here’s something to think about. If foreign partnerships are designed to build the nation’s future, should the people of that nation not be more actively involved in shaping how those partnerships unfold?

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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.