Sri Lanka and Vietnam Launch Joint Business Council to Hit $1 Billion Trade Target

New bilateral body aims to dramatically expand economic ties between Colombo and Hanoi

Sri Lanka and Vietnam have taken a significant step toward strengthening their economic relationship with the establishment of a Sri Lanka-Vietnam Business Council, a dedicated bilateral platform designed to push two-way trade between the two nations toward the ambitious milestone of one billion US dollars.

The newly formed council is expected to serve as a formal mechanism through which business communities on both sides can identify opportunities, address trade barriers, and foster partnerships across key industries. The initiative reflects a growing recognition that economic ties between Sri Lanka and Vietnam remain considerably below their potential, despite the complementary nature of both economies.

A partnership with untapped potential

Vietnam has emerged as one of Southeast Asia's most dynamic export-driven economies, while Sri Lanka continues to position itself as a strategic hub in the Indian Ocean region. Officials and business leaders involved in the council's formation believe the two countries can leverage their respective strengths to build a more robust and diversified trade relationship.

Among the sectors expected to benefit from increased bilateral engagement are:

• Agriculture and agro-processing
• Textiles and apparel manufacturing
• Technology and digital services
• Tourism and hospitality
• Seafood and food processing industries

Bridging the gap to one billion dollars

Current trade volumes between Sri Lanka and Vietnam fall well short of the one billion dollar target, making the council's mandate both ambitious and necessary. By creating structured dialogue between the private sectors of both countries, organisers hope to fast-track deals, investments, and supply chain linkages that have previously been hampered by a lack of direct engagement.

The establishment of this council marks a turning point in how Sri Lanka and Vietnam approach their economic relationship — moving from passive trade partners to active collaborators with a shared vision.

The council is also anticipated to work alongside government ministries and trade promotion bodies in both countries to align policy frameworks and remove regulatory hurdles that may have discouraged cross-border investment in the past.

Broader diplomatic significance

The launch of the business council comes at a time when Sri Lanka is actively seeking to diversify its international economic partnerships as part of its broader recovery and growth strategy. Strengthening ties with ASEAN member states such as Vietnam is seen as a priority, given the bloc's expanding influence in global trade and investment flows.

For Vietnam, deeper engagement with Sri Lanka offers access to South Asian markets and a reliable partner in a strategically important region. Both governments are expected to extend their support to the council's activities, lending the initiative a degree of diplomatic weight beyond mere commerce.

Business leaders and trade officials from both nations are expected to convene in the coming months to outline a concrete roadmap for achieving the one billion dollar trade target, with working groups likely to be established across priority sectors.

Related Video