Deeper Cooperation in Trade, Investment, Green Energy and Maritime Development Could Create New Opportunities for Sri Lankan Businesses
Sri Lanka has reaffirmed its commitment to strengthening relations with France and the European Union as the Agence Française de Développement (AFD), France’s public development bank, celebrated 20 years of engagement in the country.
The anniversary event, held in Colombo on 8 June 2026, brought together senior representatives from Sri Lanka, France, the European Union and AFD. Among those attending were Deputy Minister of Foreign Affairs Arun Hemachandra, French Ambassador Rémi Lambert, EU Ambassador Carmen Moreno and AFD Country Director Yazid Bensaïd.
Speaking at the event, Sri Lanka highlighted the importance of expanding cooperation with France and the EU in areas such as sustainable development, trade, investment, climate resilience, renewable energy and maritime development.
Two Decades of Development Support
AFD first began working in Sri Lanka following the 2004 Indian Ocean tsunami, helping support reconstruction and long-term development efforts.
Over the past two decades, AFD has committed more than EUR 700 million across a range of projects. These investments have contributed to improved water supply, transport infrastructure, renewable energy development and climate resilience initiatives throughout the country.
According to information shared during the anniversary event:
🇫🇷 AFD’s 20 Years of Impact in Sri Lanka
- EUR 700M+ committed across more than a dozen projects
- 80,000 people connected to safe drinking water
- 200,000 people with improved road access
- EUR 74 million in renewable energy financing, avoiding an estimated 480,000 tonnes of CO emissions
- Key sectors: Water and sanitation, urban development, renewable energy, climate resilience, education, food systems
- 75+ years of diplomatic relations between Sri Lanka and France
AFD’s support has covered key sectors including water and sanitation, urban development, renewable energy, education, food systems and climate adaptation.
France’s Role in Sri Lanka’s Economic Recovery
France has also played an important role in Sri Lanka’s recent economic recovery efforts.
During Sri Lanka’s debt restructuring process, France co-chaired the Official Creditors Committee together with India and Japan. The committee worked closely with international stakeholders to support the country’s economic reform programme and facilitate progress under the International Monetary Fund (IMF) framework.
This cooperation reflects France’s ongoing commitment to supporting Sri Lanka’s long-term economic stability and sustainable growth.
New Opportunities Through EU Cooperation
The European Union is also expanding its engagement with Sri Lanka through initiatives focused on trade, logistics, connectivity and sustainable investment.
Recent discussions between Sri Lankan and EU representatives have explored opportunities to position Sri Lanka as a regional maritime and logistics hub, leveraging its strategic location in the Indian Ocean.
The EU’s Global Gateway initiative, which aims to mobilise up to EUR 400 billion in investments worldwide by 2027, may create future opportunities in infrastructure, renewable energy, digital transformation and transport development.
What This Means for Sri Lankan Businesses
The strengthening relationship between Sri Lanka, France and the European Union could bring significant benefits for local businesses and entrepreneurs.
Potential opportunities may emerge in:
- Renewable energy and green technology
- Export-oriented manufacturing
- Agribusiness and food processing
- Logistics and maritime services
- Tourism and hospitality
- Digital infrastructure and technology services
- Women-led and small-to-medium enterprises (SMEs)
As international confidence in Sri Lanka continues to improve, businesses that are prepared to engage with global partners may find new opportunities for investment, trade and collaboration.
Looking Ahead
Sri Lanka and France recently held the second round of bilateral political consultations, focusing on cooperation in trade, tourism, education, development, maritime affairs and people-to-people exchanges.
With more than 75 years of diplomatic relations between the two countries and growing engagement from the European Union, the future appears promising for deeper economic and development cooperation.
For Sri Lanka, these partnerships are about more than diplomacy. They represent practical opportunities to improve infrastructure, expand renewable energy, create jobs, attract investment and support long-term economic growth.
As Sri Lanka continues its recovery journey, stronger ties with France and the European Union could help build a more sustainable, resilient and globally connected future.
