News Today: Sri Lanka and UAE Strengthen Economic and Investment Relations Today

Sri Lanka and the United Arab Emirates (UAE) have officially signed a Reciprocal Promotion and Protection of Investments Agreement, marking a significant step in enhancing economic and investment relations between the two nations.

The agreement was signed during President Anura Kumara Dissanayake’s three-day official visit to the United Arab Emirates (UAE) for the World Governments Summit 2025. The UAE’s Minister of State for Financial Affairs, Mohamed Bin Hadi Al Hussaini, signed the agreement alongside Sri Lanka’s Minister of Foreign Affairs, Vijitha Herath.

Key Aspects of the Agreement

This bilateral investment protection agreement establishes a secure legal framework for foreign investments, ensuring investor rights, dispute resolution mechanisms, and transparent economic cooperation. The President’s Media Division (PMD) highlighted that the agreement will help create a stable investment climate and enhance Sri Lanka’s appeal for Foreign Direct Investment (FDI).

The primary objectives of this agreement include:
✅ Strengthening investor protection to encourage sustainable business expansion.
✅ Enhancing trade relations by facilitating new investment opportunities.
✅ Providing financial and economic stability through a structured investment policy.
✅ Promoting business collaborations between Sri Lanka and the UAE.

Impact on Sri Lanka’s Economy

By improving investor confidence, the agreement is expected to attract global investments, create job opportunities, and stimulate economic progress. Furthermore, it paves the way for Sri Lanka to strengthen its global economic partnerships and explore emerging investment prospects across various industries.

With UAE’s vast financial resources and Sri Lanka’s strategic location, this partnership will significantly contribute to regional economic growth, fostering long-term collaboration between the two nations.