US – SRI LANKA ECONOMIC RELATIONS – (Trade, Investment & Tourism)

Trade and Investment Framework Agreement (TIFA) between Sri Lanka and the USA

The Trade and Investment Framework Agreement (TIFA), signed by Sri Lanka and the United States on 25 July 2002 in Washington, D.C., provides a framework for the two governments to maintain regular dialogue on areas of mutual interest.

The 14th U.S.-Sri Lanka Trade and Investment Framework Agreement (TIFA) Council Meeting was held in Sri Lanka on 18 September 2023.

During the meeting, the two sides held productive discussions on improving market access, enhancing the investment climate, and addressing trade barriers. The discussions also covered labor law reforms, anti-corruption measures, and the promotion of transparency and good governance. Both countries agreed to strengthen collaboration in technology transfer, the digital economy, floriculture, boat building, and coconut research, and to expand agricultural trade by facilitating U.S. export access and reducing Sri Lankan trade barriers. They reaffirmed their commitment to transparency, efficient foreign investment, and stakeholder participation.

The pre-discussion for the 15th Joint Council Meeting was held on 21 March 2024 at the Presidential Secretariat.

Bilateral Air Transport Agreement

The Bilateral Air Transport Agreement was signed on 11 June 2002 and entered into force on 18 November 2002. The Open Skies Agreement provides a legal framework for unrestricted capacity and frequencies for airlines of both countries, including liberalized code-sharing and charter arrangements. The agreement covers both passenger and cargo services and is expected to bring substantial economic benefits to air travellers, the business community, and Sri Lankan expatriates in the United States. It also provides for cooperation in air traffic security and safety between the two countries.

US-Sri Lanka Bilateral Trade Relations

The United States continues to be the single largest export destination for Sri Lankan products, accounting for 23.02% of Sri Lanka’s total exports in 2025. Over the past ten years, Sri Lanka’s exports to the United States have fluctuated, reaching a peak of US$ 3,291 million in 2022. According to the latest trade statistics, Sri Lanka’s exports to the United States amounted to US$ 2,999 million in 2025.

During the same year, imports from the United States totaled US$ 732 million, bringing the total bilateral trade turnover to US$ 3,731 million. The balance of trade remained in favor of Sri Lanka, amounting to US$ 2,266 million in 2025.

Sri Lanka’s trade with the US  

Source: Sri Lanka Customs