Sri Lankan president Anura Kumara Dissanayake has announced that discussions between Colombo and Washington over reducing a 44 percent reciprocal tariff on Sri Lankan exports to the United States have been “fruitful”, and claimed both countries are expected to issue a joint statement soon.
Speaking at an election rally in Ratnapura on Wednesday, Dissanayake said that a Sri Lankan delegation currently in Washington had met with representatives from the US Trade Representative’s Office, with the aim of easing the steep tariff rate and addressing the island’s growing trade imbalance with the United States.
“They had informed me that the discussions were fruitful. So both parties expect to issue a joint statement once agreed,” Dissanayake told the crowd, expressing optimism that a deal could be reached in the coming weeks.
The current 44 percent tariff, which will have a have impact on Sri Lanka’s key sectors such as garments, has drawn significant concern from Sri Lankan exporters and trade unions.
Industry experts have reportedly warned that, without tariff relief, Sri Lanka could face the closure of garment factories, mass layoffs, and a further contraction in its export earnings.
Garment exports remain one of Sri Lanka’s largest sources of foreign revenue, and the US is one of its top export destinations. Any prolonged disruption in access to the US market could have a devastating ripple effect on the island’s economy.
Deputy Minister of Economic Development Anil Jayantha confirmed that the delegation’s agenda includes seeking tariff reductions and strategies to increase US imports, thereby addressing the trade surplus in Sri Lanka’s favour.
There has been no word on Sri Lanka’s tariffs or discussions by the US administration.
