Sri Lanka to Engage US Over Proposed Tariffs Linked to Forced Labour Concerns

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July 09, Colombo (LNW): Sri Lanka is preparing to hold fresh discussions with the United States in an effort to avoid proposed new import tariffs linked to concerns over child and forced labour within global supply chains, as authorities seek to protect the country’s largest export market.

A report by Daily Mirror disclosed that the proposed measures by the US administration could see additional duties of between 10 per cent and 12.5 per cent imposed on imports from around 60 countries, including Sri Lanka.

The move follows a review of international trade practices aimed at preventing products associated with forced labour from entering the American market.

The proposed tariffs are expected to take effect after the expiry of a temporary 10 per cent tariff currently in place, prompting Sri Lankan authorities to intensify diplomatic and trade engagement with US officials.

Export Development Board (EDB) Chairman Mangala Wijesinghe said safeguarding access to the US market remains a top priority, noting that the United States accounts for approximately one-quarter of Sri Lanka’s total exports, generating around US$3 billion in annual export earnings.

He said Sri Lanka intends to demonstrate that its manufacturing sector maintains strong labour standards and complies with internationally accepted employment practices. According to Wijesinghe, the country’s export industries themselves are not associated with child or forced labour, but authorities are taking steps to ensure that imported raw materials and intermediate goods used in manufacturing are also sourced responsibly.

He explained that enhanced monitoring and verification mechanisms are being developed to strengthen supply chain transparency and prevent products linked to exploitative labour practices from being incorporated into Sri Lankan exports.

In addition to seeking relief from the proposed tariffs, Sri Lanka also hopes to expand bilateral trade by exploring opportunities to increase imports from the United States, with officials viewing broader commercial engagement as part of ongoing negotiations.

Deputy Minister of Finance and Planning Anil Jayantha Fernando has also maintained that Sri Lanka already upholds robust labour protections, while assuring that further measures will be introduced where necessary to strengthen oversight of supply chains and address any concerns raised by international trading partners.

Deputy Minister of Labour Mahinda Jayasinghe said there is no evidence of child labour or forced labour within Sri Lanka’s formal economy, adding that the country’s labour practices have received recognition from the International Labour Organisation (ILO) for meeting international standards.

The renewed focus on labour compliance comes as the United States continues to tighten trade regulations aimed at preventing goods produced through forced or exploitative labour from entering its market, placing greater emphasis on supply chain due diligence and ethical sourcing by exporting nations.