Sri Lanka now on a competitive footing with Vietnam, Bangladesh in U.S. market - EDB Chairman

Export Development Board (EDB) Chairman Mangala Wijesinghe said the revised tariff rate places Sri Lanka on a competitive footing with key regional peers such as Bangladesh and Vietnam, particularly in the apparel and rubber sectors, which are vital contributors to the country’s foreign exchange earnings.  

Making remarks to the press, he said the EDB hailed the United States government’s decision to further reduce reciprocal tariffs on Sri Lankan exports to 20%, calling it a monumental achievement for the nation’s economic recovery and future prosperity.   

 This decisive action, a reduction from the previously announced 30% and an initial proposed 44%, provides critical relief and a level playing field for Sri Lankan exporters in their most important market, according to him. “This is not merely a tariff reduction; it is a powerful vote of confidence in Sri Lanka’s economic trajectory, our commitment to governance reforms, and the quality of our exports,” Mr.Wijesinghe said.   

“On behalf of the entire export community, I extend our deepest gratitude for this remarkable achievement. This outcome is a testament to the power of sustained diplomacy, mutual respect, and strategic collaboration.”   

The government’s consistent efforts led by His Excellency the President, Anura Kumara Dissanayake towards fiscal stability, governance reforms, and anti-corruption measures laid the critical groundwork for this favourable result. His direct engagement and foresight in establishing a high-level negotiating team were the driving force behind this success. The Chairman also expressed his sincere appreciation to the national negotiating team, which, with its expert skills and fact-based approach, successfully navigated this challenging situation.

Furthermore, he extended his gratitude to our diplomatic teams, private sector stakeholders, including the various chambers and associations, and our international partners. Their collective efforts, unified voice, and invaluable support were instrumental in this process. This achievement is a clear demonstration of what can be accomplished when the public and private sectors work as one,” he said.   

He also said “The EDB is now focused on leveraging this positive momentum to propel our export sector forward. This significant tariff reduction is a powerful tool that offers a tangible competitive advantage for our products in the American market. It is a catalyst for enhanced competitiveness, particularly for our key industries. We will work tirelessly with our exporters to capitalize on the new opportunities that have emerged, not only by regaining lost market share but also by expanding our product portfolio. This includes a strategic push towards more value-added goods and services, moving beyond traditional exports. The EDB will actively support exporters in enhancing their capabilities through programmes focused on quality, sustainability, and innovation.”   

Furthermore, this achievement opens doors for deeper collaboration with our international partners. We will explore avenues for technology transfer and trade facilitation to further strengthen our position in the U.S. market, building on the goodwill established through these negotiations.This moment marks a pivotal turning point in Sri Lanka’s journey to economic recovery. It provides a renewed sense of confidence for our exporters and investors, reinforcing the nation’s commitment to building a resilient, dynamic, and export-driven economy. By maintaining a united front and continuing to pursue critical reforms, we can overcome even the most daunting challenges, ensuring that the benefits of this success are shared by all Sri Lankans and contribute to the nation’s long-term prosperity, he added.