Sri Lanka expresses willingness to strengthen trade ties with U.S. amid tariffs

4 April 2025 09:31 pm Views - {{hitsCtrl.values.hits}} 9 Bookmark

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Colombo, April 4 (Daily Mirro) - The Government of Sri Lanka today reaffirmed its strong commitment to deepening economic relations with the United States, as concerns mount over a newly proposed 44% reciprocal trade tariff that could impact Sri Lanka’s $3 billion annual exports to the U.S.

In an official statement, the Government acknowledged the U.S. administration’s efforts to address trade imbalances and recognized the changing global trade landscape. While expressing concern over the potential impact of the tariffs on Sri Lanka’s export-driven recovery, the Government voiced readiness to engage in constructive dialogue with U.S. officials to manage trade relations in a mutually beneficial and fair manner.

“Sri Lanka remains committed to reducing both tariff and non-tariff barriers that hinder trade and investment,” the statement read. “We aim to foster an environment that promotes innovation, encourages commercial partnerships, and unlocks opportunities for both nations.”

The Government also highlighted the broader context of Sri Lanka’s economic recovery efforts. Since entering the IMF Extended Fund Facility (EFF) in March 2023, the country has made substantial progress, completing the third review of the programme and stabilizing its economy. Growth is projected at 5% for 2024.

Officials thanked the U.S. for its ongoing support, particularly in external debt restructuring. “The U.S. has been a longstanding friend and a trusted trading partner. Its support has been instrumental in our recovery,” the Government said.

With global demand showing signs of a slowdown, Sri Lanka expressed concern that further trade restrictions could stall its economic rebound.

Furthermore, the Government stressed the importance of engaging early with the U.S. to mitigate risks and ensure that bilateral trade remains a driver of growth and prosperity.

Comments - 9

Peter Perera Saturday, 05 April 2025 12:06 AM

It will be a good idea to change the course now to a different commodity which has minimum effect on newly imposed tarrif. As an island, we have so much opportunities not to depend on raw materials to come from overseas to manufacture something that is prone to tarrif and cost of production.

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Gunapala Saturday, 05 April 2025 09:56 AM

Can you name the new commodity we should produced now? Our garment workers going to lose their jobs from next month.

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Peter Perera Saturday, 05 April 2025 05:19 PM

@ gunapala, If you are so ignorant, we could improve our tea exports which is being neglected. It was the tea industry that brought most of our foreign exchange to our country for decades. Minimum of tea being exported to usa which will have the minimum effect on the new tariff imposed. However our our cost of production is higher than other exporting countries and as a result our market share is not that great.. If we could reduce our costs of production it will help across the board.

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M Fernando Saturday, 05 April 2025 07:33 PM

Gunapala, can you confirm that the US of 330 million war-mongering inhabitants is the only export market in a planet of 7 Billion people ? Why such narrow vision? Why is SL worried about GSP if the US is only market? We need to think more creatively, diversify and not put all our eggs in one basket like Canada and Mexico who are learning the bitter lesson now.

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Jayantha R Saturday, 05 April 2025 01:38 AM

Finally statement that has hope “Sri Lanka remains committed to reducing both tariff and non-tariff barriers that hinder trade and investment,” Until that it seems just meaningless whinging to Lanka public was the way of government. Now at least it can look to reduce reciprocal tariffs once it has reduced tariff and non-tariff barriers again the US.

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Having tariff and non-tariff barriers is the problem Saturday, 05 April 2025 01:47 AM

Biggest issue to economic rebound is giving into local business cartels and the useless farmers. Removing tariff and non-tariff barriers to imports not just from US but also India and China will give much relief to the public.

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Sambo Saturday, 05 April 2025 08:23 AM

It is very un-fare of the tariffs that has been slapped on Sri Lanka. We are not exporters of a large quantities and being a poor country, we depended a lot on the GDP to strengthen our economy. However I think the US administration should think twice on this decision.

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Rathnavali Saturday, 05 April 2025 01:03 PM

Tariffs are imposed on imports to protect local industries and also, in countries like ours, to limit the importation of high value products and thereby reduce the drain of foreign exchange. Our garment industries flourished since the importing countries (USA) did not impose high tariffs on our garments. However, in importing goods such as cereals and medicines from USA, Sri Lanka had imposed high tariffs not comparable to the low tariffs imposed on Sri Lankan products entering the US market. According to the Principle of Reciprocity, countries are required to grant equal treatment in international trade. This principle cannot be applied equally due to the reasons given above. If we open the market in an equal manner that can have an adverse impact to a small economy like ours. It needs creative thinking to overcome high tariffs on our exports while maintaining a stable economy. RW would have handled the present situation effectively but cannot say the same about the NPP government.

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Bernard Jayatilake Saturday, 05 April 2025 02:50 PM

Sri Lanka is in a precarious position due to it charging a 55% tariff for imports from the U.S. and the IMF will not allow or approve lowering of the tariff rate before we start negotiations with U.S. authorities for a favourable tariff rate and to further complicate matters, with India overtaking Sri Lanka as the second largest exporter of tea, the status quo with regard to our major export crops, i.e tea, rubber and coconuts have changed dramatically and it would be an insurmountable task to regain the No 2 spot and having now lost the vital foreign currency earnings thru garments, the only alternative avenue available is to hitherto fully untapped two resources, viz. Gems and Graphite to counter any adverse effects from the U.S. tariff increases.

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