AJITH SIRIWARDANA 
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Sri Lanka to discuss with US on reducing reciprocal tariff: Minister
Colombo, April 3 (Daily Mirror) - The government expects to hold diplomatic level discussions with the United States to consider the possibility of reducing the new reciprocal tariff system introduced by US President Donald Trump and to agree on trade and investment policies which will benefit both countries, Minister of Labour Anil Jayantha said today.
He said the government will initiate discussions to consider the possibilities of reducing the tax before April 9 when the tax is set be implemented.
Refuting allegations by opposition parties that the government had failed to intervene to prevent the tax, the Minister said the government has discussed with the relevant institutions and what measures to be followed in such a scenario as Ministries and expert teams.
"We cannot prevent the US trade policy. We need to discuss. We have already exchanged views with them,” he added.
The Minister said Sri Lanka was facing a special economic situation where it is engaged in a programme with the IMF and was recovering from an economic downfall and added that Sri Lanka has a chance to explain the situation.
"We are looking to consider the possibilities of reducing the reciprocal tariff through discussions before it is implemented on April 9. Sri Lanka is in a special situation even though we have a beneficial trade balance. We are moving forward with an IMF programme. We are trying to stabilise the economy and are working with international institutes and countries with understanding. So, we have a chance to explain our situation. We will have to explain it in accordance with their policy. We cannot influence another country," he said.
The Minister said Sri Lanka's apparel and food export industries will be negatively affected due to this tariff.
"Prices of exports will go up due to this new tariff and there might be a reduction of competition for our exports in the US market, thereby causing a drop in demand and in the export revenue. Our exporters will have to face profit reductions," he said.
He said if the discussions with the US government fails, then Sri Lanka will consider alternatives such as discussions on getting special benefits under the GSP+ facility.
"We can also consider simplifying our Customs duty. We expect to discuss with the US on diplomatic level to agree on trade and investment policies while developing long term relationships to benefit both countries," he said.
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