Mitigate impact due to US tariffs: Modi agrees to consider Sri Lanka’s request on increasing exports to India

• The government had already had a virtual discussion with high level government officials of the U.S.

Indian Prime Minister Narendra Modi agreed to consider the request of the Sri Lankan government to increase Sri Lanka’s exports to India as a means to mitigate the impact of the US reciprocal tariffs on Sri Lanka’s export to the US, Minister of Labour Prof. Anil Jayantha Fernando said yesterday.   Professor Fernando who is also the Deputy Minister of Economic Development told a special press conference at the Government Information Department that Prime Minister Modi gave a positive response to Sri Lanka’s request and agreed to consider it.   
He told this while responding to a question whether the Sri Lankan government sought India’s assistance in the wake of US tariffs.   
“Yes, we made a request. We received a positive response. He agreed to consider our request. We requested Sri Lanka’s export to India in a number of sectors,” he said. The Minister said the government is planning to discuss with the US government on the matter adding that the government had already had a virtual discussion with high level government officials of the US.   
 Responding to a question whether the government was hoping to reduce the custom duty on the US imports to Sri Lanka just as Vietnam did, he said final decision will be taken by the committee appointed to look into the matter adding that there would not a huge impact to the economy even if the custom duty on US imports were reduced.  “We only impose 20 percent custom duty and 10 percent Airport Development Levy (PAL) on US imports. The committee will consider whether we could reduce the custom duty on US imports. The reduction of custom duty on US imports will not have a huge impact on the economy,” he said.  The Minister said however, Sri Lanka will have to discuss with the IMF before reducing custom duty as Sri Lanka has agreed on a fiscal consolidation mechanism with the IMF.