The two South Asian nations have been historically tied since before the sub-continent's colonisation by the British. Sri Lanka's first King, to be mentioned in the ancient Pali chronicles, was alleged to have ancestors from the Vanga Kingdom located in modern Bangladesh. In Sri Lanka, several strands of hair gifted by the Buddhists of Bangladesh, identified as originated from Buddha, are venerated on Poya Day, a Buddhist public holiday in Sri Lanka.
In August 2008, both Heads of States discussed the implementation of new air links in hope of increasing trade, investment and stronger cultural links. Sri Lanka's current investments have been in Bangladesh's garment and banking sector and expect to diversify into different areas. Bangladesh also hosts a number of Sri Lankan medical students and cricket as a form of friendly communications between their people.
There has been discussion to increase bilateral relations, cooperation between the two navies and sending Sri Lankan Naval personnel to study in Bangladesh.