March 16, Colombo (LNW): A Sri Lankan delegation is set to visit the United States next month to engage in discussions with the US Trade Office regarding the reciprocal tariffs that are scheduled to take effect on April 02, 2025, Minister of Foreign Affairs Vijitha Herath confirmed in Parliament.
During his speech yesterday (15), Minister Herath explained that the government would seek to address how Sri Lanka could avoid the imposition of these tariffs, which could have a serious impact on the country’s exports.
The Minister stressed that Sri Lanka’s fragile economic situation, already strained by numerous challenges, would not be able to bear the additional burden of these tariffs.
Herath further elaborated on the government’s plans to engage in high-level discussions, revealing that a business forum featuring Sri Lankan representatives from the Foreign Ministry, Finance Ministry, and the business community will be held in the US next month.
This forum will serve as a platform for Sri Lanka to raise concerns about the upcoming tariffs and explore potential relief measures.
The Foreign Minister expressed hope that through these discussions, Sri Lanka could negotiate a tax waiver, particularly within the context of its ongoing programme with the International Monetary Fund (IMF).
He made it clear that the country is in no position to endure further economic pressure, especially with the threat of increased tariffs.
The impending tariffs come after US President Donald Trump, in his first address of his second term to a joint session of Congress, defended his administration’s strict tariff policies.
He noted that the US had long been subjected to high tariffs from various countries, and as part of his “America First” strategy, he announced reciprocal tariffs on several nations, including Sri Lanka, to level the playing field.
These tariffs are set to impact a range of industries, with Sri Lanka’s key export sector, notably the garment industry, expected to be heavily affected.
In 2023, Sri Lanka exported goods valued at approximately US$3 billion to the US, with over 70% of these exports coming from the garment sector.
Given the US’s significant role as one of Sri Lanka’s largest trading partners, the upcoming tariffs have raised considerable concern.
The Sri Lankan government is taking swift and proactive steps to mitigate the impact of these tariffs, seeking both relief and the potential for a more favourable trade relationship with the United States.
