By: Staff Writer
April 13, Colombo (LNW): President Anura Kumara Dissanayake has revealed that two letters have been sent to US President Donald Trump addressing the ongoing tariff issues between Sri Lanka and the United States. According to Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva, the first letter, written by President Dissanayake, was followed by a more detailed letter from the Secretary to the Treasury outlining potential solutions to resolve the dispute.
The All-Party Conference (APC), held on Thursday, April 10, gathered key political figures, government officials, and economic advisors to discuss Sri Lanka’s response to potential economic challenges posed by US trade policies. During the meeting, Opposition Leader Sajith Premadasa emphasized the need for a unified national approach to mitigate the potential fallout, which he warned could include job losses and factory closures if no decisive action was taken.
Dr. de Silva, who chairs the parliamentary Committee on Public Finance, provided a technical analysis during the meeting. He stressed the importance of economic reforms and regional integration to enhance Sri Lanka’s economic resilience. One key proposal was to sign the Economic and Technology Cooperation Agreement (ETCA) with India, which could unlock regional growth opportunities. Additionally, he suggested a Harmonised System (HS) Code-based approach to trade negotiations with the US, which could help improve bilateral relations and address the tariff concerns.
Despite acknowledging these suggestions, President Dissanayake did not commit to any specific actions at the time. Dr. de Silva, however, stressed the need for pragmatic engagement with the US, pointing out that President Trump’s approach to trade, especially his focus on trade deficits, was fundamentally flawed but must be navigated carefully due to its transactional nature.
Addressing the concerns over the US’s imposed tariffs, Dr. de Silva pointed out that the 88% tariff figure was misleading. He explained that the number was derived by dividing the trade deficit by the value of imports from Sri Lanka, using arbitrary parameters. He argued that this calculation did not reflect the actual tariffs and that debating it on technical grounds was futile.
The APC also raised concerns about Sri Lanka’s economic future, particularly regarding the potential loss of the European Union’s GSP+ trade concessions. Dr. de Silva warned that the upcoming changes in EU regulations could result in Sri Lanka losing its preferential trade status. He emphasized the urgency of securing a transitional arrangement to prevent disruptions to Sri Lanka’s export economy.
At the conclusion of the APC, it was agreed to monitor the situation closely and reconvene for further discussions. Although no formal committee was established, there were suggestions to form a working group to continue addressing the issue. Sri Lankan officials are expected to engage with US trade representatives during the upcoming IMF and World Bank Spring Meetings in Washington, DC, to further advance the discussions.
