Beyond borders: Closer look at France-Sri Lanka economic cooperation

FRANCE and Sri Lanka have been steadily building economic ties in recent years, with cooperation expanding across trade, investment and tourism. While the relationship remains modest in scale compared to larger regional partners, both countries stand to benefit from deeper commercial engagement. This article examines bilateral trade, investment, tourism as well as French contributions through development aid.

- By Eranda Roshan Fernando

Bilateral trade

As illustrated in Table 01, Sri Lanka's exports to France have increased rapidly since 2021 compared to the pre-pandemic period. In contrast, Sri Lanka's imports from France declined from $ 261.3 million in 2018 to $ 148.6 million in 2024. Consequently, the trade balance, which was in favour of France in 2018, has shifted in Sri Lanka's favour since 2020. The shift in the trade balance can be attributed to a combination of factors.

On one hand, Sri Lanka's export sectors, particularly apparel, tea, rubber products and seafood recovered strongly after the pandemic, with increased demand from European markets, including France. On the other hand, imports from France declined, due to Sri Lanka's foreign exchange constraints, reduced consumer demand and efforts to prioritise essential imports amid economic challenges during recent past. As a result, the overall trade dynamic has tilted in Sri Lanka's favour since 2020.

Sri Lanka's major imports from France include machinery, pharmaceuticals, perfumes, wine, electrical and electronic equipment, etc.