By: Staff Writer
July 14, Colombo (LNW): Sri Lanka’s seafood export industry, a vital pillar of the nation’s economy, is facing mounting pressure following the United States’ recent decision to reduce import tariffs from 44% to 30%. While the move has been portrayed by some as a diplomatic win, industry leaders have strongly dismissed it as merely a temporary relief rather than a meaningful breakthrough.
The Seafood Exporters’ Association of Sri Lanka (SEASL), representing the country’s top seafood producers and exporters, warned that the revised tariff rate still places Sri Lanka at a severe disadvantage compared to regional competitors. “Even at 30%, we are worse off than exporters from Vietnam or the Philippines, who face tariffs of 20% or less,” SEASL said in a statement released Saturday.
Seafood exports to the United States account for more than 25% of Sri Lanka’s total seafood export volume, with some high-value products—like pasteurised crab meat—completely reliant on the US market. With such heavy dependence, the Association said the higher duties threaten the industry’s viability, including the incomes of thousands of small-scale fishermen and workers across the value chain.
The broader seafood sector in Sri Lanka earned over USD 280 million in 2024, with the European Union, Japan, the Middle East, and the United States being the top importers of Sri Lankan tuna, shrimp, crab, and lobster. Despite this potential, exporters say their global competitiveness is being choked by high domestic raw material costs and excessive local taxes, even before international tariffs are factored in.
“The 30% US tariff makes it even harder to compete,” a SEASL spokesperson explained. “We’re already dealing with cost burdens at home. Now, we’re being priced out of key international markets.”
In response, exporters are attempting to diversify into emerging markets such as the Middle East, Far East Asia, and other parts of Europe. But the Association cautioned that penetrating new markets is a time-intensive and costly process, requiring consistent policy support, infrastructure, and international trade facilitation.
SEASL is now urging the Sri Lankan Government to take immediate steps to address the crisis. The Association has proposed three urgent measures: renegotiating US tariffs to match regional standards by August 1, 2025; establishing a structured, transparent roadmap for trade talks with active private-sector involvement; and crafting a national export strategy focused on improving competitiveness and accelerating global market access.
“This isn’t a victory—it’s a warning,” SEASL concluded. “If we don’t act now, our exporters and fishing communities could lose everything while our competitors secure long-term market dominance.”
