ECONOMYNEXT – Sri Lanka will engage with the United States to explore possibilities of reducing the 30 percent reciprocal tariff with open mind and genuine intentions, officials said, amid looming adverse impact on the island nation’s top foreign exchange earner garment export.
US President Donald Trump has issued a letter to Sri Lanka President Anura Kumara Dissanayake, setting a 30 percent tariff, down from an original 44 percent.
“Our approach is to engage continuously in the discussion, in the negotiation,” Treasury Secretary Harshana Suriyapperuma told reporters at a special media briefing on Thursday.
“There is a time period that has been provided until August 1 and until such time the tariff has been identified as the existing 10% will continue as it is,”
“So our approach is to make use of this time, this space, to the best possible advantage of Sri Lanka, and to have a mutual beneficial outcome, both for USA and for Sri Lanka as well.”
Analysts say even the 30 percent tariff hike could have adverse impact to Sri Lanka’s garment exporters to the U.S. and thousands of employees may lose their jobs in the industry.
The government authorities is yet to assess such impacts, officials said.
“We recognize we have made significant progress in the process so far,” Central Bank Governor Nandalal Weerasinghe told reporters referring to the negotiation.
“Obviously we want to make more progress going forward. Channels are open. We will continue to engage with an intention to have a better solution going to work for Sri Lanka, it is not just say we are satisfied with the current one. We are satisfied where we are now, and progress we have made from 44 percent to 30 percent.”
“But we need to make more progress. That’s why we continue to engage.”
Trump in his letter addressed to President Aruna (Anura) Kumara Dissanayake said: “We have had years to discuss our trading relationship with Sri Lanka, and have concluded that we must move away from these very persistent, Trade Deficits, engendered by Sri Lanka’s Tariff and Non Tariff, Policies and Trade Barriers.”
He also said the relationship between Sri Lanka and the U,S. “has been, unfortunately, far from reciprocal”.
Despite the official letter, Sri Lankan officials said there was no rush to response to Trump and they will assess the situation before responding officially. (Colombo/July 10/2025)
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