August 07, Colombo (LNW): A revised import tariff of 20 per cent on goods exported from Sri Lanka to the United States has officially come into force today (07), following a protracted series of diplomatic negotiations aimed at softening previously imposed trade restrictions.
The development marks a partial victory for Sri Lankan trade officials, who have spent several months engaged in talks with representatives from the Office of the United States Trade Representative (USTR), after initial measures sparked alarm within the country’s export community.
The original tariff—set at a steep 44 per cent—was introduced on April 02 through a high-profile policy declaration made by former U.S. President Donald Trump at the White House. The move triggered immediate concern among Sri Lankan exporters, particularly those in sectors such as apparel, rubber, ceramics, and agricultural produce, which rely heavily on the U.S. market.
Reacting swiftly, the Sri Lankan government launched a diplomatic and economic appeal to Washington, citing the potential impact on bilateral trade relations and on livelihoods dependent on the island’s export industries. A sequence of formal meetings, technical submissions, and trade discussions ensued, during which Sri Lanka requested a reassessment of the punitive tariff.
The initial outcome of these efforts saw the rate reduced to 30 per cent, offering modest relief. However, continued diplomatic pressure and targeted advocacy have now resulted in the U.S. agreeing to a further reduction, bringing the tariff down to 20 per cent.
In a statement issued by the Ministry of Finance, officials noted that while the revised figure does not fully restore pre-April trade conditions, it represents a significant step forward in re-establishing fairer access to one of Sri Lanka’s most critical export markets. Authorities also hinted that talks are ongoing and that further revisions may be pursued through future bilateral engagements.
Exporters, while cautiously optimistic, have expressed the need for the government to pursue long-term trade solutions, including diversification of export destinations and enhanced domestic value addition, to reduce reliance on any single market and improve resilience against policy shifts abroad.
