The United Arab Emirates and Sri Lanka are moving closer to finalizing a Comprehensive Economic Partnership Agreement (CEPA), a strategic deal aimed at revitalizing Sri Lanka’s economy and bolstering its standing as a regional business hub. Hanif Yusoof, Sri Lanka’s Presidential Special Envoy for Foreign Investment, emphasized that the agreement is a top priority, noting that it will act as a transformative step for businesses in both nations. With bilateral trade already hitting $1.6 billion and a significant Sri Lankan workforce established in the UAE, officials believe this partnership will foster a collaborative environment rather than a competitive one, allowing Sri Lanka to leverage Dubai’s successful economic model for its own recovery.

Central to this economic vision is the Port City Colombo project, which developers hope will serve as a gateway for UAE-based companies to penetrate the broader South Asian market. By offering a strategic location at the epicenter of the Indian Ocean, the project seeks to attract long-term investments, particularly in the renewable energy sector, where Sri Lanka aims to reach 70 percent clean energy by 2030. Industry leaders from both countries view this collaboration as a win-win, where the UAE’s expertise in global logistics and infrastructure complements Sri Lanka’s potential, ultimately creating a seamless trade corridor that benefits both regions.