Weekly Briefing | South Asia
Sri Lankan Foreign Minister Vijitha Herath’s attendance at the 33rd ASEAN Regional Forum (ARF), as part of the 59th ASEAN Foreign Ministers’ Meeting (AMM) in the Philippines, is a deliberate strategy to diversify the nation’s foreign partnerships and economic cooperation diverging from its SAARC-oriented foreign policy. The ARF takes place against the backdrop of a severe threat to Sri Lanka’s economic security as the Middle Eastern crisis looms large, making Sri Lanka vulnerable to energy shocks and diminishing foreign remittances from the region. Its commitments to the 17th IMF Extended Fund Facility has made it even more vulnerable to the impacts, despite its slow and steady economic recovery since the 2022 Economic Crisis. Thus, the Minister’s engagement aims to attract crucial foreign direct investments and enhance trade relations through Sri Lanka’s twin-track ASEAN economic strategy, addressing its economic vulnerabilities.
The twin-track Sri Lanka-ASEAN strategy rests on the two key pillars; Sectoral Dialogue Partnership (SDP) status and Regional Comprehensive Economic Partnership (RCEP). Sri Lanka has been a Regional Participant of the ARF since 2007, having acceded to the Treaty of Amity & Cooperation in Southeast Asia (TAC) and accredited its first ambassador to ASEAN in 2016. The letter of intent submitted in 2019 marked Sri Lanka’s first aspiration to gain SDP Status. After 6 years of continued dialogue since the original bid, the Sri Lankan Cabinet formally approved the decision to submit a new activity plan to obtain the status in March 2025. Sri Lanka became the first country to submit a letter of intent in 2023 to join the RCEP since its entry into force. This bid advanced further in 2026, when Sri Lanka submitted its responses to the preliminary RCEP questionnaire, alongside diplomatic backing from Australia and New Zealand following the Foreign Minister’s respective visits to those countries. These positions were reaffirmed by the Sri Lankan Ambassador to ASEAN Sashikala Premawardhane to the ASEAN Secretary-General Dr. Kao Kim Hourn in June 2026. Furthermore, the nation's intentions to deepen its relations with ASEAN and its commitment to the ARF objectives and principles were reflected by the delegation at the ARF Senior Officials’ Meeting.
During his bilateral engagement with the ASEAN Secretary General, the Minister expressed his intention to strengthen ASEAN-SL relations. SL-ASEAN bilateral trade which has been significantly enhanced over time saw an exponential 108% increase from 2009 to 2019 and continues to expand, while amounting to approximately 11% of the total goods trade. Despite the expansion, Sri Lanka currently operates at a significant trade deficit against the bloc, while trade remains concentrated in a few ASEAN member states such as Singapore and Thailand where a preferential free trade architecture remains in place. ARF provided a platform for Sri Lanka to address these structural limitations by engaging in dialogue to expand trade, investments and preferential regimes with other ASEAN members such as the host nation Philippines as well as to address the persistent trade deficit.
The forum’s primary focus on regional cooperation, maritime security and cooperation and traditional and non-traditional security challenges resonates with Sri Lanka as it currently faces such threats from the Middle East crisis and the Bay of Bengal. The Minister further reflected on the forum’s theme, “Navigating Our Future, Together” in his address at the High-Level Conference marking the 50th Anniversary of the TAC, discussing Sri Lanka’s perspectives on regional stability, multilateral cooperation and shared economic interests while reaffirming its commitment to fostering regional peace and dialogue.