Sri Lanka and Indonesia Commit to Enhanced Bilateral Relations and Economic Collaboration at 10th World Water Summit

During the 10th World Water Summit, President Ranil Wickremesinghe and Indonesian President Joko Widodo had an important bilateral meeting where they reaffirmed their commitment to strengthening the longstanding relationship between Sri Lanka and Indonesia. The discussions covered a wide range of regional and international issues, emphasizing the importance of collaboration in addressing global challenges.

President Wickremesinghe highlighted the historic ties between Sri Lanka and Indonesia, dating back to their joint participation in the 1956 Bandung Conference. He appreciated President Widodo’s leadership in regional, international, and bilateral matters and stressed the significance of such summits in fostering global cooperation.

One of the main topics discussed was the critical issue of water management. President Wickremesinghe emphasized the importance of the World Water Summit and expressed Sri Lanka’s readiness to participate in the Global Blended Financial Alliance to address common financial challenges in managing water resources. He commended Indonesia for establishing a Secretariat for the Alliance, recognizing its importance for Sri Lanka.

President Widodo focused on economic cooperation between the two countries, stressing the need to finalize the Preferential Trade Agreement (PTA) by the first quarter of 2025 to enhance economic ties. He also expressed Indonesia’s interest in entering the Sri Lankan vaccine market through Indonesian pharmaceutical companies and called for the lifting of import restrictions on Indonesian palm oil and related products.

The Indonesian President highlighted Indonesia’s advancements in renewable energy, particularly the country’s largest floating solar power project. He emphasized the importance of hydro diplomacy and political leadership in achieving sustainable water management and development goals. Additionally, he welcomed Sri Lanka’s leadership in the Indian Ocean Rim Association and its aspirations to become a sectoral dialogue partner.

President Wickremesinghe reiterated the importance of completing the PTA by early 2025, pointing out Sri Lanka’s existing free trade agreements with India and Singapore, as well as ongoing negotiations with Thailand, Bangladesh, and Malaysia. He suggested that Sri Lanka’s inclusion in the Regional Comprehensive Economic Partnership (RCEP) could encourage other South Asian countries to join as well.

The discussion also covered regional security and economic cooperation in the Indian Ocean. President Wickremesinghe supported ASEAN’s Indo-Pacific outlook and called for closer bilateral and regional cooperation on Indian Ocean affairs. He proposed more frequent meetings between heads of government and a specific bilateral agreement with Indonesia to enhance commercial collaboration in the region.

President Widodo thanked Sri Lanka for co-sponsoring the Global Blended Financial Alliance and emphasized its role in achieving sustainable development goals. He called for continued collaboration between relevant ministries from both countries to support this initiative. Looking ahead, President Widodo mentioned the upcoming presidential transition in Indonesia and expressed hope that the new administration would continue to enhance ties with Sri Lanka.

President Wickremesinghe expressed his eagerness to work with Indonesia’s new leadership and invited President Widodo to visit Sri Lanka after his term ends in October. Both leaders reaffirmed their commitment to enhancing bilateral relations and addressing shared global challenges through continued cooperation.