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Sri Lanka Seeks Strategic Partnership with Saudi Arabia, Activation of 10 Bilateral Agreements

Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)
Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)
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Sri Lanka Seeks Strategic Partnership with Saudi Arabia, Activation of 10 Bilateral Agreements

Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)
Omar Lebbe Ameer Ajwad, Sri Lanka’s Ambassador to Saudi Arabia (Asharq Al-Awsat)

Sri Lanka’s Ambassador to Saudi Arabia Omar Lebbe Ameer Ajwad revealed ongoing efforts to establish a strategic partnership with Saudi Arabia and implement 10 signed agreements across various sectors to foster mutual growth.

Such efforts also aim to launch collaborations in projects aligned with Saudi Vision 2030, with hopes of boosting bilateral trade and investments in technology and agriculture.

The diplomat highlighted that the inaugural session of the joint committee between the two countries, held in 2023, identified 63 areas of cooperation spanning 20 sectors, including the economy, science, defense, technology, culture, youth, and sports.

He noted that Saudi Arabia has been a long-standing development partner for Sri Lanka. Over the years, the Saudi Fund for Development has extended $438 million (1.5 billion SAR) in concessional loans, financing 15 development projects in the country.

Among these projects are the Colombo Water Supply and Sewerage Project (1981), Kinniya Bridge—the longest in Sri Lanka, the Neurotrauma Unit at Colombo National Hospital, the Kalu Ganga Development Project, the Medical Faculty at Sabaragamuwa University, the Wayamba University Township, and the Peradeniya-Badulla-Chenkaladi Road.

Ajwad stated that Sri Lanka and Saudi Arabia have so far signed 10 bilateral agreements and memorandums of understanding (MoUs) in addition to other agreements under consideration. These cover aviation services, customs duties, workforce, economy, trade, investment, technology, culture, skills verification, youth and sports, political consultations, avoidance of double taxation, and foreign direct investment.

With the implementation of Vision 2030, Ajwad emphasized that bilateral relations are entering a new phase, particularly in 2024 as the two countries celebrate 50 years of diplomatic ties. He noted that collaboration opportunities include the Colombo Port City Special Economic Zone, tourism and hospitality, agriculture and food security, renewable energy, and information and communications technology (ICT).

The official further mentioned that Saudi Arabia is Sri Lanka’s 24th largest export market and 11th largest source of imports, with plans to expand economic cooperation in trade and investment. In 2023, Sri Lanka exported goods worth $99.9 million to Saudi Arabia, while imports from the Kingdom amounted to $288.84 million.

Key Sri Lankan exports include tea, rubber products, fruits and vegetables, frozen fish, coconut products, and cloves. Imports from Saudi Arabia primarily consist of petroleum oils, liquefied petroleum gases, fertilizers, chemicals, and plastic products.

Ajwad also highlighted potential value-added exports to Saudi Arabia, such as spices, tea, kithul products, coconut-based goods, fresh produce, processed foods, organic agricultural products, and seafood. Sri Lanka’s industrial exports to Saudi Arabia include rubber products, gemstones, jewelry, apparel, ceramics, and porcelain.

He noted that Sri Lankan companies have also invested in Saudi Arabia, including Sierra Construction, which operates in the electromechanical sector.

The ambassador said that Saudi Arabia’s Minister of Economy and Planning, Faisal bin Fadhil Alibrahim, discussed creating an economic roadmap during his recent visit to Sri Lanka, which covers trade, investment, energy, tourism, cultural exchange, digital transformation, and employment opportunities.

In the second half of 2024, Sri Lankan companies participated in major international exhibitions in Saudi Arabia, including the Riyadh Travel Fair 2024, Saudi Food Expo 2024, Saudi Agriculture Exhibition 2024, the Saudi Workforce Exhibition, and the Saudi International Handicrafts Exhibition (Banan).

Ajwad emphasized that bilateral relations have seen significant growth since the establishment of diplomatic ties in 1974. Sri Lanka opened its first embassy in Jeddah in 1983, which was later relocated to Riyadh in 1985. Saudi Arabia established its first resident embassy in Colombo in 1996 and appointed its first ambassador in 2001.

Since the 1980s, many Sri Lankans have traveled to Saudi Arabia for work. Today, an estimated 200,000 Sri Lankans reside in the Kingdom. At the same time, Sri Lanka has become a preferred travel destination for Saudi tourists.

The diplomat stressed that the two countries have maintained strong ties at bilateral, regional, and multilateral levels. They cooperate in organizations such as the Non-Aligned Movement (NAM), the Indian Ocean Rim Association (IORA), the Asian Cooperation Dialogue (ACD), the ASEAN Regional Forum (ARF), and various United Nations bodies.

In 2024, Sri Lanka and Saudi Arabia will celebrate 50 years of diplomatic relations—a significant milestone reflecting the depth of their friendship and strategic partnership. The economic ties between the two nations trace back centuries to trade in goods such as pearls, gemstones, sandalwood, cloves, cinnamon, pepper, coconuts, and ivory.

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IMF Acknowledges Economic Turnaround in Pakistan

A man cuts meat at a local restaurant in Karachi (EPA)
A man cuts meat at a local restaurant in Karachi (EPA)
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IMF Acknowledges Economic Turnaround in Pakistan

A man cuts meat at a local restaurant in Karachi (EPA)
A man cuts meat at a local restaurant in Karachi (EPA)

The International Monetary Fund (IMF) has acknowledged a marked improvement in Pakistan's economic outlook, stating that policy efforts under its Extended Fund Facility (EFF) have helped stabilize the economy, contain inflation and rebuild confidence, as the country prepares for a fresh round of review talks later this month.

Speaking at a press briefing in Washington, IMF Communications Director Julie Kozack said an IMF staff team will visit Pakistan from February 25 for discussions on the Third Review under the Extended Fund Facility (EFF) and the Second Review under the Resilience and Sustainability Facility (RSF).

According to Pakistani newspaper, The Express Tribute, Kozack described Pakistan's fiscal performance in the 2025 financial year as “strong,” noting that the country has achieved a primary fiscal surplus of 1.3% of GDP, a figure that aligns with agreed program targets.

Last December, the IMF approved the release of $1.2 billion to Pakistan, giving the cash-strapped country a fresh boost as it works to recover from one of its worst economic crises in years.

The IMF will provide Pakistan $1 billion under its Extended Fund Facility and $200 million under its Resilience and Sustainability Facility.

Pakistan's central bank governor Jameel Ahmad told Reuters this week the recovery is broader and more durable than headline export data suggest.

The chief said he expects the economy to grow as much as 4.75% this fiscal year, pushing back against a recent downgrade by the IMF.

He said differences in projections were not unusual and reflected timing issues, including the IMF's incorporation of flood-related assessments in its latest outlook.

“All these sources and indicators, along with FY26-Q1 data, point to a broad-based recovery in all three sectors of the economy,” Ahmad said.

He added that the central bank believed that agricultural activity had remained resilient despite floods and “it is even performing better than its targets.”

Ahmad said financial conditions had eased significantly following a cumulative 1,150 basis point cut in the policy rate since June 2024, and that the full impact was still feeding through. This, he said, was supporting growth while preserving price and economic stability.

The central bank last month held its benchmark rate at 10.5%, defying expectations for a cut.

The State Bank of Pakistan (SBP) raised its FY26 growth forecast to 3.75–4.75% at its January meeting, 0.5 percentage point higher than its previous range, despite a contraction in exports in the first half of the year and a widening trade deficit.

The governor said differences in projections were not unusual and reflected timing issues, including the IMF's incorporation of flood-related assessments in its latest outlook.

While exports declined in the first half of the fiscal year, Ahmad said the fall reflected low global prices and border disruptions rather than softer activity.
The divergence with the IMF comes at a delicate moment for Pakistan, which is emerging from a balance-of-payments crisis under a $7 billion IMF program.

Pakistan's previous growth spurts have often led to currency pressure and a decline in foreign exchange reserves, making the sustainability of the current rebound a key question for investors.

Ahmad said high-frequency indicators and 6% growth in large-scale manufacturing in July–November point to strengthening demand, while agriculture has remained resilient despite last year's floods.

“Additionally, if the government decided to tap global capital markets for any debt issuance, then that would be on the upside of our current assessment,” he said.

Pakistan plans to issue panda bonds, a yuan-denominated debt sold in China's domestic market around the upcoming Lunar New Year, as part of efforts to diversify external financing and broaden its investor base.

Ahmad said the central bank has been consistently purchasing dollars in the interbank market to strengthen foreign exchange buffers, with data published regularly.

He said that while economic stability has improved, structural reforms remain key to sustaining stronger growth and improving productivity.

Business

India, Brazil Sign Agreement to Boost Cooperation on Rare Earths, Cut Dependence on China

Brazilian President Lula da Silva and Indian Prime Minister Narendra Modi before a meeting at Hyderabad House in New Delhi on February 21, 2026 (EPA)
Brazilian President Lula da Silva and Indian Prime Minister Narendra Modi before a meeting at Hyderabad House in New Delhi on February 21, 2026 (EPA)
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India, Brazil Sign Agreement to Boost Cooperation on Rare Earths, Cut Dependence on China

Brazilian President Lula da Silva and Indian Prime Minister Narendra Modi before a meeting at Hyderabad House in New Delhi on February 21, 2026 (EPA)
Brazilian President Lula da Silva and Indian Prime Minister Narendra Modi before a meeting at Hyderabad House in New Delhi on February 21, 2026 (EPA)

India and Brazil sealed a deal Saturday on critical minerals and rare earths following a meeting in New Delhi between Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva.

“The agreement on critical minerals and rare earths is a major step towards building resilient supply chains,” Modi said.

“Increasing investments and cooperation in matters of renewable energies and critical minerals is at the core of the pioneering agreement that we have signed today,” said Lula, who arrived in New Delhi on Wednesday for a summit on artificial intelligence, accompanied by a delegation of more than a dozen ministers as well as business leaders.

The details of the deal were not immediately available but a senior Indian foreign ministry official said official discussions were underway.

Brazil has the world's second-largest reserves of critical minerals, which are used in everything from electric vehicles, solar panels and smartphones to jet engines and guided missiles.

India, seeking to cut its dependence on top exporter China, has been expanding domestic production and recycling while scouting for new suppliers.

Main Trade Partner

“Brazil is India's largest trade partner in Latin America. We are committed to taking our bilateral trade beyond $20 billion in the coming five years,” Modi said. “Our trade is not just a figure, but a reflection of trust.”

Nine other agreements and memoranda of understanding were finalized on Saturday, covering digital cooperation, health, entrepreneurship and other fields.

Rishabh Jain, an expert with the Delhi-based Council on Energy, Environment and Water think tank, said India's growing cooperation with Brazil on critical minerals complements recent supply chain engagements with the United States, France and the European Union.

While these partnerships grant India access to advanced technologies, finance and high-end processing capabilities, “Global South alliances are critical for securing diversified, on-ground resource access and shaping emerging rules of global trade,” Jain told AFP.

India, the world's most populous nation, is the 10th largest market for Brazilian exports, with bilateral trade topping $15 billion in 2025.

Key Brazilian exports to India include sugar, crude oil, vegetable oils, cotton and iron ore.

Demand for iron ore has been driven by rapid infrastructure expansion and industrial growth in India, which is on track to become the world's fourth largest economy.

Business

Trump Says He Will Raise US Global Tariff Rate from 10% to 15%

US President Donald Trump speaks during a press briefing at the White House, following the Supreme Court's ruling that Trump had exceeded his authority when he imposed tariffs, in Washington, DC, US, February 20, 2026. (Reuters)
US President Donald Trump speaks during a press briefing at the White House, following the Supreme Court's ruling that Trump had exceeded his authority when he imposed tariffs, in Washington, DC, US, February 20, 2026. (Reuters)
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Trump Says He Will Raise US Global Tariff Rate from 10% to 15%

US President Donald Trump speaks during a press briefing at the White House, following the Supreme Court's ruling that Trump had exceeded his authority when he imposed tariffs, in Washington, DC, US, February 20, 2026. (Reuters)
US President Donald Trump speaks during a press briefing at the White House, following the Supreme Court's ruling that Trump had exceeded his authority when he imposed tariffs, in Washington, DC, US, February 20, 2026. (Reuters)

President Donald Trump said on Saturday he will raise temporary tariffs on almost all US imports from 10% to 15%, the maximum level allowed under the law, after the US Supreme Court struck down his previous tariff program as invalid.

Trump had immediately announced a 10% across-the-board tariff on Friday after the court's decision, which ‌found the president ‌had exceeded his authority when ‌he ⁠imposed an array ⁠of higher rates under an economic emergency law.

The new levies are grounded in a separate law, known as Section 122, that allows tariffs up to 15% but requires congressional approval to extend them after 150 days.

In a ⁠social media post on Saturday, ‌Trump said he ‌would use that period to work on issuing other "legally ‌permissible" tariffs. The administration intends to rely ‌on two other statutes that permit import taxes on specific products or countries based on investigations into national security or unfair trade practices.

"I, as President of ‌the United States of America, will be, effective immediately, raising the 10% ⁠Worldwide ⁠Tariff on Countries, many of which have been 'ripping' the US off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level," he wrote in a Truth Social post.

Trump has shown little sign of backing off his global trade war in the hours since the court's 6-3 decision, attacking individual justices in personal terms and insisting he retained the power to impose tariffs as he sees fit.