UAE and Sri Lanka Aim to Finalise CEPA Trade Deal Within One Year

The UAE and Sri Lanka are moving to finalise a Comprehensive Economic Partnership Agreement (CEPA) within the next 12 months. The proposed trade deal aims to eliminate or significantly reduce tariffs, remove technical barriers to trade, and open new channels for investment across key sectors including logistics, tourism, and renewable energy. Negotiations follow a period of sustained growth in bilateral trade. Non-oil trade between the two nations reached approximately $1.1 billion in 2022, marking a double-digit increase from the previous year. The UAE remains a critical export destination for Sri Lankan tea, apparel, and gemstones, while Sri Lanka serves as a growing market for UAE-produced polymers, refined oils, and construction materials. Expansion of the CEPA Program This timeline fits into the UAE’s broader foreign trade strategy, which seeks to establish bilateral agreements with high-growth economies worldwide. Sri Lanka represents a strategic partner in South Asia due to its proximity to major Indian Ocean shipping lanes and its potential as a regional hub for logistics and food security initiatives. Officials indicate that the legal frameworks for the deal are…