US tariff reduction a powerful vote of confidence in Sri Lanka’s economic trajectory
Daily FT: The Sri Lanka Export Development Board (EDB) welcomed the US 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.
“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,” EDB Chairman and CEO Mangala 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 Chairman noted that 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. “This remarkable outcome is a testament to the power of sustained diplomacy and strategic collaboration. The Government’s consistent efforts, led by President Anura Kumara Disanayake, 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 EDB is now focused on leveraging this positive momentum to propel Sri Lanka’s export sector forward. This significant tariff reduction is a powerful tool that offers a tangible competitive advantage for Sri Lankan products in the American market. It is a catalyst for enhanced competitiveness, particularly in key industries.
The EDB will work tirelessly with exporters to capitalise on the new opportunities that have emerged, not only by regaining lost market share but also by expanding the product portfolio. This includes a strategic push towards more value-added goods and services, moving beyond traditional exports. It will actively support exporters in enhancing their capabilities through programs focused on quality, sustainability, and innovation.OSL take:
The reduction of the US trade tariffs on Sri Lanka from the initial 44% to the latest 20% has enabled the country to remain a competitive trading partner with the US. With neighbouring India, which is a large exporter to the US, being slapped a 50% trade tariff, Sri Lanka presents many lucrative business opportunities in the South Asian region. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by Sri Lanka with many foreign countries have all given a boost to Sri Lanka as an emerging business destination in the region while also being poised to be a competitive trading partner with many foreign markets. Given all these factors and the increasing business potential in Sri Lanka, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka, especially those who want to export goods to the US.
| Article Code : | VBS/AT/20250813Z_4 |