Following the trade liberalization initiatives introduced as far back as late 1970s and continued by all successive governments to date, Sri Lanka is currently known to be the most liberalized economy in the entire region of South Asia. Series of unilateral measures implemented over the years have resulted in rationalization and simplification of the country’s tariff structure to a large extent.

The foreign trade policy, which continues with the process of further liberalization of the country’s current trade regime, aims at integrating Sri Lanka with the global economy within the positive attributes of free market economy, while holding in balance the interests of the domestic industry through specific measures.