Towards sustainable growth: Expanding Swiss-Sri Lanka economic cooperation

SWITZERLAND, one of the world’s most advanced economies and Sri Lanka, a South Asian nation with a strategic location, have maintained diplomatic relations since 1956.

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Over the decades, their economic cooperation has developed gradually, encompassing trade, investment, tourism, and development assistance. While the scale of bilateral engagement remains modest, both countries continue to explore opportunities for mutually beneficial collaboration amid a shifting global economic landscape.

Bilateral trade

According to Table 01, Sri Lanka’s trade relationship with Switzerland has seen notable shifts between 2018 and 2024. Despite global disruptions caused by the COVID-19 pandemic, Sri Lanka’s exports to Switzerland have shown resilience and growth, rising from $ 122 million in 2018 to $ 153 million in 2024. Although exports dipped to $ 90.9 million in 2020 at the height of the pandemic, the sector demonstrated a strong recovery in the following years.

In contrast, Sri Lanka’s imports from Switzerland have steadily declined, falling from $ 295 million in 2018 to just $ 83 million in 2024. This drop reflects the broader economic challenges faced by Sri Lanka during the period, including a severe foreign exchange shortage and the impact economic crisis.

As a result of these contrasting trends, the trade balance which had been in Switzerland’s favour from 2018 to 2020 shifted in Sri Lanka’s favour beginning in 2021, marking a significant turning point in bilateral trade dynamics.

accounting for approximately 1.2% of the country’s total merchandise exports. This trade relationship, though modest in scale, is marked by the exchange of high-value goods on both sides.

Sri Lanka’s key exports to Switzerland include seafood, apparel, Ceylon tea, edible fruits and vegetables and precious stones particularly sapphires, which are highly valued in the Swiss luxury market. These sectors have continued to perform despite global headwinds, including the COVID-19 pandemic.