Sri Lanka to make fresh U.S. engagement to ensure child labour-free export supply chains

By Kelum Bandara   

Sri Lanka is planning fresh engagements with the United States (U.S.) in a bid to avert new tariffs linked to child or forced labour, with the country’s export authorities seeking to demonstrate that it deals with the possible import of raw materials or intermediary goods tainted with such concerns for export industries, an official said.  

The U.S. administration recently proposed imposing additional duties of 10% or 12.5% on imports from 60 countries, including Sri Lanka, after determining that they had failed to curb trade in goods produced with forced labour.  

The announcement comes ahead of the July 24 expiry of a temporary 10% tariff imposed by the U.S. government on February 20, the same day the U.S. Supreme Court struck down President Donald Trump’s tariffs imposed under the International Emergency Economic Powers Act.  

Chairman of the Sri Lanka Export Development Board (EDB), Mangala Wijesinghe, told the Daily Mirror that the U.S. remains Sri Lanka’s single most important export market and must be safeguarded.  

“We will engage with the U.S. authorities to demonstrate that Sri Lanka maintains high labour standards,” he said.  

He said that Sri Lanka’s manufacturing sector adheres to strong labour practices, concerns over imported intermediate goods used in export production originate from supply chains involving child labour or forced labour, should be allayed.  

“We have good labour standards in manufacturing. However, there may be instances where intermediary goods imported for export manufacturing have been produced using child labour elsewhere. We will develop mechanisms to ensure that such products are not used in the manufacture of Sri Lankan exports,” Mr. Wijesinghe said.  

He said the U.S. accounts for around 25% of Sri Lanka’s total exports.  

“It is a market worth about US$3 billion for Sri Lanka. We will negotiate with the U.S. to seek tariff concessions. At the same time, we will also explore opportunities to increase competitive imports from the U.S.,” he added.  

Earlier, Deputy Minister of Finance and Planning Anil Jayantha Fernando said Sri Lanka already maintains strong labour practices and that further measures would be taken to address any concerns relating to child labour and forced labour within supply chains.  

Deputy Minister of Labour Mahinda Jayasinghe told the *Daily Mirror* that neither child labour nor forced labour exists in Sri Lanka’s formal economy.  

“The International Labour Organization (ILO) has also recognised Sri Lanka’s compliance with international labour standards in the formal sector,” he said.  

According to the ILO, an estimated 27.6 million people worldwide were subjected to forced labour on any given day in 2021, generating more than US$200 billion in illegal profits annually.  

This issue has gained prominence as the United States intensifies efforts to prevent goods produced through forced labour from entering its market by strengthening supply chain due diligence and trade enforcement measures.