A Comprehensive Economic Partnership Agreement (Cepa) between the UAE and Sri Lanka is expected to be signed soon, a move officials say could significantly deepen trade and investment ties as Colombo seeks to rebuild its economy and position itself as a regional business hub.

“We expect to fast track the Cepa process. This will be transformative for the business environment,” Hanif Yusoof, Sri Lanka’s Presidential Special Envoy for Foreign Investment, told Khaleej Times on Thursday, expressing confidence that discussions would move quickly towards conclusion.

Yusoof was speaking in Dubai at a conference titled ‘Recovery to Relevance: Sri Lanka’s Moment in the Evolving Global and Regional Economy’, where officials highlighted investment opportunities, including the $20 billion Port City Colombo project.

“We signed the investment protection treaty when the President was here, but we need to have the Cepa to get things moving,” he said, adding: “I think Cepa will be signed soon. It’s just a matter of time before we start negotiations and finalise Cepa.”

He pointed to the UAE’s role as a global trade hub and its large Sri Lankan diaspora as key enablers of stronger economic ties. “This is the hub for the entire Middle East and Europe and Africa. So imagine if you can join the value chain,” he said. “250,000 Sri Lankans are working here.”

Sri Lankan Ambassador to the United Arab Emirates Prof. Arusha Cooray speaks at the event

Arusha Cooray, Sri Lanka’s Ambassador to the UAE, said bilateral trade between the two countries has already reached $1.6 billion, with the UAE ranking as the sixth-largest investor in Sri Lanka.

“The Investment Promotion and Protection Act was signed during the President’s visit last year… and chambers of commerce also signed an MOU,” she noted, underlining the growing institutional framework supporting trade.

Hanif Yusoof , Presidential Special Envoy for Foreign Investment for Sri Lanka, speaks at the event

Yusoof emphasised that Sri Lanka is seeking partnerships rather than competition with the UAE. “Both countries will benefit, this is not a competition… all the MNCs, the big companies are here, so we’re asking them why don’t you look at Sri Lanka,” he said. “We wish to have the same kind of success that Dubai has.”

He also underlined priority sectors for investment, particularly energy. “We want to be 70 per cent renewable by 2030… we need $12 billion within the next four to five years to reach our potential and improve our grid,” he said.

“For me, this is not a different project. This would be an extension of Dubai… we don’t want to be competitive with Dubai… as a complement of Dubai,” he said. “We are coming out of the abyss for economic fall down… but we are confident.”

Alexi Gunasekera,Consul General of Sri Lanka in Dubai and the Northern Emirates at the “event

Alexi Gunasekera, Sri Lanka’s Consul General in Dubai, said the Port City Colombo development is central to the country’s investment strategy. Sri Lanka is actively promoting the project to regional investors. “I see a lot of potential in UAE-Sri Lanka trade… I’ve tried to widen the interest of people in the Middle East and UAE to at least have a look,” he said.

Harsha Amarasekera, Chairman of the Colombo Port City Economic Commission, described the project as a catalyst for long-term growth. “We see the port city being the catalyst for the greater development of Sri Lanka over the next five to 10 years,” he said, citing its position at the “epicenter of the Indian Ocean” and access to a market of more than two billion people.

Harsha Amarasekera PC, Colombo Port City Economic Commission Chairman, speaks at the event

He said the project offers opportunities for UAE companies to expand regionally. “We see this as a footprint by which companies within the UAE can expand into another region… a complementary, supportive and collaborative platform.”

More than 250 companies have already established a presence in the port city, Amarasekera said, adding that it is expected to become a key logistics and services hub. “This will become the pivotal location for logistics companies… with a very effective low-cost alternative ancillary centre.”

Ghanim Al Falasi, Senior Vice President/Director General’s Office for Dubai Silicon Oasis, speaks at the event

From the UAE side, Ghaim Al Falasi, Senior Vice President at Dubai Silicon Oasis, said Dubai’s economic model could offer useful lessons for Sri Lanka.

“Dubai became a global business hub by combining infrastructure, connectivity, regulation, innovation and investor confidence,” he said. “Free zones are integrated ecosystems… across technology, aviation and commerce.”

He added that collaboration between Dubai and Colombo could be mutually beneficial. “Dubai provides global access to capital and logistics, while Colombo offers strategic access to South Asia… together they can become complementary platforms,” Al Falasi said.