By: Staff Writer
May 25, Colombo (LNW): Sri Lanka is once again gearing up for high-level trade talks in Washington, D.C., after receiving an invitation from the U.S. Trade Representative’s office.
The meeting, part of a continued bilateral initiative, is aimed at deepening trade relations and exploring tariff-related cooperation. However, despite frequent interactions, Sri Lanka continues to lack the strategic discipline required to secure favorable trade outcomes.
For Sri Lanka, as calculated using 2024 data, 95.6% of US imports are subject to reciprocal tariffs, with the 90-day pause, standing currently as a 10% global tariff. In addition, 4.2% of imports from Sri Lanka are subject to the tariffs on steel, aluminium, and auto parts imposed under Section 232.
However, 0.2% of its imports are exempted from the new tariff measures. These exemptions were made by issuing Annexe-II of the US Executive Order on the reciprocal tariffs and a notice issued by the US Customs and Border Protection (CBP) on April 12.
Sri Lanka’s exports will be subjected to an additional 25 per cent of the value of the steel and aluminium content under the 2025 Section 232 tariffs.
The newly added aluminium derivative products account for USD 28.5 Mn in US imports from Sri Lanka, across 27 products. There are USD 80.78 Mn imports under 20 products from Sri Lanka, which are categorised as steel derivatives under the Section 232 Steel and Aluminium tariff proclamation by the US.
One main challenge of the new US tariff structure is the additional reporting requirements for exporters. Notably, the stipulated tariffs will be calculated for the steel or aluminium value of the products, which are exempt from reciprocal tariffs.
The upcoming talks build on earlier virtual sessions and are positioned as an opportunity to press for U.S. tariff relief. Yet this is not the first time Sri Lanka has found itself in this position—and previous efforts have largely fallen short.
Analysts point to a recurring pattern of weak preparation, late-stage strategy formulation, and unclear national objectives, all of which diminish the country’s negotiating power.
President Anura Kumara Dissanayake has taken a hands-on approach by convening a key meeting with senior officials to prepare for the Washington trip.
The delegation includes representatives from trade, finance, foreign affairs, the Attorney General’s office, and the Central Bank. Despite the involvement of top-level personnel, Sri Lanka has struggled to make a persuasive economic case to U.S. negotiators in past rounds, mainly due to inconsistent messaging and limited follow-through.
Sri Lanka’s inability to use the World Trade Organization (WTO) mechanisms effectively, and its slow implementation of trade facilitation reforms, further erodes its position.
Measures like customs simplification and bureaucratic streamlining are essential, yet have not been prioritized. Meanwhile, the broader tools of economic diplomacy—such as alliance-building and mutual economic storytelling—remain underutilized.
If Sri Lanka hopes to gain real benefits from this meeting, it must show up with more than good intentions. It needs a coherent strategy, strong data, and skilled negotiators who can argue the case for tariff concessions and trade facilitation with precision and confidence. Without that, these talks may end like so many before them—with little to show, and much to regret.
