The Ceylon Chamber of Commerce last week launched the Sri Lanka–Vietnam Business Council, seeking to give fresh institutional momentum to bilateral trade, investment and tourism ties at a time when political and diplomatic relations between the two countries are gaining strength, though the commercial exchanges remain below their potential.
The new council, the 22nd bilateral business council established under the Ceylon Chamber, has attracted 30 inaugural members, signalling growing private-sector interest in Vietnam and the opportunities emerging from closer economic relations.
The launch follows commitments made during Vietnamese Party General Secretary and State President Tô Lâm’s State visit to Sri Lanka in May, when a Sri Lanka–Vietnam Trade, Investment and Tourism Forum brought together government and business representatives from both countries.
Ceylon Chamber Chairperson Krishan Balendra said the new council was intended to move those discussions from dialogue to sustained commercial engagement.
“This is an important milestone in the growing economic partnership between our two countries,” he said, describing the council as a platform to facilitate business partnerships, promote bilateral trade and investment, encourage knowledge sharing and strengthen private sector engagement.
“As we launch the business council today, I am confident that it will serve as a catalyst of stronger partnerships, increased trade and investments, and deeper collaboration between the private sectors of Sri Lanka and Vietnam,” he added.
The urgency of strengthening the commercial relationship was underscored by Vietnamese Ambassador to Sri Lanka Trinh Tam, who noted that bilateral trade has yet to cross the $ 500 million mark in any recent year.
This is despite the two countries having maintained diplomatic relations for more than 55 years and having recently elevated their relationship to a Comprehensive Partnership.
“Our economic, trade and investment cooperation is still under expectation,” she said, noting that the two countries’ leaders have nevertheless set an ambitious $ 1 billion bilateral trade target by 2030.
She said stronger Government-to-Government (G2G) relations alone would not be sufficient to achieve that ambition. “For this partnership to grow further, we need not only close G2G relations, but also stronger connections between our businesses and our people.”
The Ambassador said the new Business Council could provide the practical mechanism for companies to meet, exchange market information, identify opportunities and develop partnerships.
Balendra highlighted Vietnam’s rapid economic transformation and its emergence as a major manufacturing, logistics and investment hub in Asia as key reasons for Sri Lankan companies to engage more actively with the market.
He identified manufacturing, agriculture, logistics, tourism, ICT, renewable energy and professional services as areas with potential for greater cooperation.
“Sri Lanka’s strategic location in the Indian Ocean, strong services sector and growing tourism potential offer Vietnamese companies with opportunities for partnerships and regional access,” he outlined.
He said the Chamber’s earlier ‘Doing Business in Vietnam’ event in October 2025 had already generated considerable interest among Sri Lankan businesses. “It showed a strong appetite for exploring opportunities in one of Asia's fastest-growing economies,” Balendra said.
The council, he added, would provide a structured platform to identify new opportunities and address common challenges rather than functioning simply as another business association.
“We warmly invite interested companies and stakeholders to become part of this initiative and join us in shaping the next chapter of Sri Lanka-Vietnam economic relations,” Balendra said.
Improved connectivity is emerging as one of the most immediate enablers of the relationship.
Balendra also highlighted that the expansion of services by Vietnam Airlines and Vietjet had significantly improved connectivity between the two countries, making travel easier for businesses, investors and tourists.
The Ambassador pointed out that the direct flights had already begun producing tangible business interest. She said since Vietnam Airlines and Vietjet Air commenced direct services between Ho Chi Minh City and Colombo around two months ago, the Vietnamese Embassy has facilitated about 10 groups of Vietnamese businessmen visiting Sri Lanka to explore the market and promote their products.
“Though still small in size, they are positive signals for incoming business connections between Vietnam and Sri Lanka,” she said.
The development could therefore become more than a tourism catalyst, with direct connectivity helping reduce one of the practical barriers to business-to-business engagement.
She also urged the new Council to ensure that the relationship does not become concentrated solely among large corporations.
The Ambassador called for greater participation by small and medium-sized enterprises (SMEs), young entrepreneurs and businesses operating in emerging areas, arguing that the council should help move discussions beyond potential opportunities towards actual projects.
“Most importantly, turn ideas into real projects,” she stressed, outlining the Council’s role in connecting companies, sharing information and facilitating partnerships.
The Ambassador also outlined trade, investment, tourism, logistics, agriculture, food products and services as areas offering particularly strong potential.
Addressing the gathering as the Council’s first President, Mahen Kariyawasan stressed the need to transform the two countries’ longstanding friendship into measurable economic outcomes.
“I believe our two countries have tremendous potential to complement each other's strengths and expand our economic engagement. While our diplomatic and cultural relations are strong, there is considerable scope to further develop our trade, investment and tourism partnerships,” he added.
Noting that Sri Lanka and Vietnam already had a strong foundation built on historical ties, cultural understanding and people-to-people relations; Kariyawasan said the challenge was to convert that goodwill into commercial outcomes.
“Our objective must be to transform the longstanding friendship between our two nations into tangible economic benefits. We must actively encourage business-to-business partnerships, organise trade delegations, promote investment opportunities and create a platform where entrepreneurs from both countries can work together,” he added.
He identified tourism, aviation, agriculture, manufacturing, technology and logistics as priority areas and called for business-to-business partnerships, trade delegations and investment promotion to be placed at the centre of the council’s work.
Kariyawasan insisted on an inclusive platform that would allow SMEs to participate alongside larger companies. “I also believe that this Council must be inclusive, providing opportunities not only for large corporations but also for SMEs to participate in and benefit from our growing relationship,” he said.
The formation of the Sri Lanka-Vietnam Business Council comes as both countries seek to give greater economic substance to an increasingly close diplomatic relationship.
“As we inaugurate this Council, let us remember that we are not merely establishing another business organisation. We are creating a bridge between two friendly nations, with the potential to generate new opportunities, strengthen commercial ties and contribute to the prosperity of our people. I look forward to working closely with the Ceylon Chamber of Commerce, both Embassies, our respective governments and the private sectors of our two countries to make this Council a truly successful and dynamic institution,” Kariyawasan said.
Balendra said the combination of institutional engagement, growing business interest and enhanced air connectivity provided a promising foundation. “We warmly invite interested companies and stakeholders to become part of this initiative and join us in shaping the next chapter of bilateral economic relations. The future of Sri Lanka-Vietnam economic relations is both promising and exciting,” he added.
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Krishani
Krishani
Oct 16 2026
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