Sri Lanka, US Officials to Discuss Impact of Tariffs

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COLOMBO (News 1st); Members of the committee appointed to study US tariffs and representatives from the US Trade Representative's office are scheduled to meet today (8).

Deputy Minister of Economic Development, Professor Anil Jayanta Fernando, stated that the Sri Lankan government's proposals will be presented during this meeting.

On Monday (7), Sri Lanka's Minister of Foreign Affairs, Foreign Employment, and Tourism, Vijitha Herath, and the US Ambassador to Sri Lanka, Julie Chung, held talks on addressing the impact of the United States' tariff policies on Sri Lanka.

During the meeting, both parties extensively reviewed the current trade relations between Sri Lanka and the United States, emphasizing the potential effects of the new US tariff policies on Sri Lanka's export sector.

The necessity to reassess these policies was highlighted, especially considering Sri Lanka's ongoing recovery from the severe economic crisis faced in 2022 and the implementation of International Monetary Fund programs without hindrance.

Ambassador Chung also made a note of the meeting on X (formerly twitter) noting that she had a productive discussion with Foreign Minister Vijitha Herath on rebalancing Sri Lanka’s trading relationship with the U.S.

She had emphasized the importance of reciprocal treatment for U.S. exports.

A fair, balanced trade relationship supports economic growth, creates jobs, and strengthens industries in both our countries, she noted.

Committee Appointed: 

On 3rd April, President Anura Kumara Disanayake appointed a committee to conduct an in-depth study on potential issues that may arise due to the new reciprocal tariff system introduced by US President Donald Trump and to submit recommendations to the government.

The committee includes the Secretary to the Ministry of Finance, the Governor of the Central Bank, the Chairman of the Board of Investment of Sri Lanka, the Chairman of the Sri Lanka Export Development Board and the Director General of Economic Affairs at the Ministry of Foreign Affairs.

Additionally, Senior Economic Advisor to the President Duminda Hulugamuwa, Chief Economic Policy Advisor to the Ceylon Chamber of Commerce Shiran Fernando, as well as Ashroff Omar, Sherad Amalean and Saif Jafferjee have also been appointed to the committee.

Thereafter, a discussion was held at the Presidential Secretariat between President Anura Kumara Disanayake and the Committee.

During the meeting, the Committee’s proposals concerning the country’s strategic response to the imposition of these new tariffs, as well as the next steps that should be taken was reviewed in detail.

Furthermore, the Sri Lankan government is expected to initiate prompt discussions with the U.S. government regarding possible relief measures.

The recent executive decision by US President Donald Trump has imposed a 44% tariff on Sri Lankan exports, effective from April 9th.

This decision, aimed at addressing trade deficits with various countries, is expected to have significant implications.

Sri Lanka annually exports approximately $12 billion worth of goods and services, with around 25% (or $3 billion) of these exports destined for the United States.

In contrast, Sri Lanka imports goods worth about $360 million from the US, which is roughly 10% of the value of its exports to the US.

This results in a trade deficit of approximately $2.6 billion in favor of Sri Lanka.

President Donald Trump highlighted the disparity in trade during a recent statement, noting that countries like Bangladesh, Pakistan, and Sri Lanka benefit significantly from trade with the US.