US offers duty-free access for bulk of SL exports: Deputy Minister Fernando

The United States has offered Sri Lanka duty-free access for up to 80 percent of its exports, a senior government official said, which indicates a potential breakthrough in trade talks that follow Washington’s imposition of a 30 percent tariff on Sri Lankan goods.

The offer, currently under negotiation, includes a list of 1,161 products, covering major export earners such as apparel and over 40 agricultural items according to Deputy Minister of Economic Development Prof. Anil Jayantha Fernando. 

“These matters are technical and sensitive. While the offer is significant, the full details of the potential agreement will be shared only once negotiations are finalised,” said Prof. Fernando on a televised programme.

The latest development comes as the two countries continue trade discussions triggered by the reciprocal tariff strategy of the US. On 9 July, the US announced a 30 percent tariff on all Sri Lankan exports from 1 August, down from a previously proposed 44 percent announced in April.

The Sri Lankan government welcomed the reduction but has pressed for further concessions to safeguard key export sectors and maintain regional competitiveness.

While officials argue the 30 percent tariff still gives Sri Lanka a relative edge over some regional rivals, industry associations representing apparel, rubber, and coconut-based exporters have raised alarm over potential fallout.

The government has not disclosed when the negotiations with the US will conclude, but the proposed duty-free offer, if finalised, could help soften the blow of the upcoming tariff and revive investor confidence in the island’s export economy.

A high-level government delegation is scheduled to depart for Washington, DC today for a final round of negotiations.