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The Ministry of Foreign Affairs and Cooperation (MNEC), in partnership with the World Bank Group, co-hosted the launch of the Timor-Leste Economic Report 2026, the World Bank’s flagship biannual publication on the country’s economic development, on 16 April 2026 at the Salão Nobre, MNEC.
The World Bank’s flagship biannual report, titled “Leveling Up: How ASEAN Membership Can Support Timor-Leste’s Economic Transformation,” highlights opportunities from Timor-Leste’s accession to ASEAN, particularly in expanding market access, strengthening investor confidence, and deepening regional economic integration.
Mr. David Freedman, World Bank Group Resident Representative, noted improved economic performance since 2023, supported by sustained growth, increased tourism, improved domestic revenue, and continued macroeconomic stability underpinned by the Petroleum Fund. These positive trends reinforce Timor-Leste’s potential as an emerging investment destination in the region.
Excellency Francisco Kalbuadi Lay, Vice Prime Minister, Coordinating Minister for Economic Affairs, and Minister for Tourism and the Environment, reaffirmed the Government’s strong commitment to inclusive and resilient growth focused on job creation, poverty reduction and improved social services. He underscored that, in close collaboration with national and international partners, the Government will persist in advancing policies and reforms aimed at fostering long-term prosperity, stability, and inclusive growth for Timor-Leste.
On the same occasion, Excellency Bendito dos Santos Freitas, Minister of Foreign Affairs and Cooperation, emphasized the need for economic diversification and reforms, noting ASEAN accession as a strategic driver of competitiveness, investment, and institutional strengthening.
Discussions underscored that ASEAN membership provides a credible, rules-based framework to advance reforms, improve business climate, and attract investment. Speakers highlighted the importance of improving trade facilitation, streamlining regulatory processes, and strengthening institutions to attract quality investment and promote private sector-led growth.
Timor-Leste’s upcoming ASEAN Chairship in 2029 was highlighted as a key opportunity to showcase progress and strengthen its regional and global economic standing.
The report is available at:
https://documents1.worldbank.org/curated/en/099041526060539214/pdf/P513278-ea02d5d8-7374-4e21-ad36-681387f3df99.pdf
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On April 16th, 2026, Prime Minister Kay Rala Xanana Gusmão met with Australia’s special envoy for the Greater Sunrise Project, Katrina Cooper, at the Government Palace in Dili as part of a working visit to follow up on and further bilateral discussions regarding the project’s development.

During the meeting, the Australian envoy, accompanied by the Australian Ambassador to Timor-Leste, Caitlin Wilson, and the Prime Minister, accompanied by the Minister of Petroleum and Mineral Resources, Francisco da Costa Monteiro, provided an update on the ongoing negotiations, which are at an advanced stage and focused on finalising three key documents: the Production Sharing Agreement, the Fiscal Regime, and the Petroleum Mining Code, the latter of which has already been finalised.
Following the meeting, the Minister of Petroleum and Mineral Resources noted that the purpose of the meeting with the Australian Government’s special representative for Greater Sunrise was to report on progress and to share ideas on how to strengthen cooperation between the two governments in developing the project. He added that the discussions had been constructive and focused on finalising the necessary instruments to move the project forward.
Katrina Cooper expressed Australia’s satisfaction with the progress made, noting that the negotiating teams from both countries have already finalised one of the key documents, the Petroleum Mining Code, which allows negotiations to proceed on the Production Sharing Agreement and the Fiscal Regime.
During her visit to Timor-Leste, the special envoy also met with the Minister of Petroleum and Mineral Resources and the President of the National Petroleum Authority, Gualdino do Carmo da Silva, as part of the technical meetings.
Following her visit to Timor-Leste, Katrina Cooper met, in Darwin on the same day, with Agio Pereira, Minister of the Presidency of the Council of Ministers, and Timor-Leste’s representative in the Greater Sunrise discussions, to continue the bilateral dialogue.
The teams from Timor-Leste and Australia are engaged in intensive negotiations, including virtual sessions and preparations for new in-person rounds scheduled for June in Dili and Canberra, to finalise the remaining legal and contractual documents required for the project’s development.
The Greater Sunrise gas fields lie about 140 kilometres south of the Timor-Leste coast. The project’s development consortium comprises TIMOR GAP, Woodside, and Osaka Gas Australia. An independent conceptual study conducted in 2024 confirmed the project’s feasibility in Timor-Leste and its potential contribution to the national economy.
The development of Greater Sunrise, including the pipeline connection to the south coast, aligns with the national priorities for economic growth and development set by the 9th Government.
On April 14th, 2026, in Dili, the Government, through the Ministry of Finance, signed two grant agreements with the Korea International Cooperation Agency (KOICA) totalling approximately US$13 million to implement projects in the areas of school nutrition and forest restoration.

The agreements cover the Forest Restoration Capacity Development and Sustainable Management Project in Timor-Leste (2026–2033) and the Integrated Nutrition and Food Security Program, which encompasses school feeding, food fortification, and the strengthening of school infrastructure (2026–2030).
The funding will be allocated between the two programmes, with approximately US$6 million earmarked for the agriculture and forestry sector, under the responsibility of the Ministry of Agriculture, Livestock, Fisheries, and Forests, and approximately US$7.2 million for the education sector to support school meals and improve school conditions.
The forest restoration project focuses on the municipalities of Baucau and Manatuto and includes reforestation efforts, the establishment of nurseries, and technical training, with local communities involved. The project also aims to restore degraded areas and strengthen the sustainable management of natural resources.
The nutrition and food security programme will be implemented in several municipalities and aims to improve students’ diets, strengthen infrastructure such as school kitchens, and promote supply chains based on local production, thereby contributing to better health and academic performance.
Members of the Government, representatives of KOICA, international partners, and local officials attended the ceremony.