Prime Minister Joseph Muscat had a meeting with UK Prime Minister Theresa May on Monday during a short visit to London.
The two leaders' talks focused on Brexit.
Dr Muscat was in London for Commonwealth Day, with Malta approaching the end of its term as Commonwealth Chair.
He attended a service at Westminster Abbey.
In comments to the media, Dr Muscat said the biggest risk to Britain's post-Brexit economy was a disruption to trade in services, but he believed London and Brussels would reach agreement on the issue.
Muscat said he feared leaving the EU single market would reduce Britain's comparative advantage in services although he said predictions of a mass exodus from the City of London after Brexit were overdone.
He added though that he expected London and Brussels would find a solution on trade in services post-Brexit.
"I think there will be concessions from both sides, but from the European side, I don't see concessions when it comes to points of principle, such as jurisdiction," he told reporters.
"I see that as a very big, bold and bright red line from the European side," he added.
Dr Muscat's engagements also included a discussion, about Brexit, hosted by the Institute of Directors.
MEETING WITH PRINCE HARRY, MEGHAN MARKLE
Dr Muscat, his wife and daughters also chatted with the 'new royal', Prince Harry's fiancee and former actor Meghan Markle, and Prince Harry himself after the service at Westminster Abbey.
The subject of the conversation was Ms Markle's visits to Malta. She was last here some two years ago, to model for Elle magazine and had said she liked both the food and Maltese culture.