News Today: Sri Lanka Focuses on Trade & US Tariff Reduction

Sri Lanka is eager to improve its trade and investment relationship with the United States, especially in light of recent tariff changes. Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha recently shared that the Sri Lankan Government aims to build stronger economic ties with the US and secure a reduction in tariffs through discussions before the critical date of April 9th.

Dr. Jayantha explained, “Our tax regime is complicated and cumbersome; we need to work on simplifying it to enhance trade relations with the US. We want to establish a trade and investment policy that is mutually beneficial.” He also mentioned that Sri Lanka currently exports goods worth approximately US$ 3 billion, while importing only about US$ 370 million from the US.

The minister added that, with Sri Lanka being part of an IMF program and gradually stabilizing its economy, the country might also explore exporting through the GSP+ concessions to the European Union if the US tariff policies remain unchanged.

In response to the concerns raised by the tariff announcement, Foreign Affairs Deputy Minister Arun Hemachandra emphasized the government’s commitment to protecting exporters, workers, and entrepreneurs affected by these tariffs. He said, “This government will do everything necessary to safeguard their efforts and protect the economy through careful diplomacy and cooperation with international partners.”

Sri Lanka’s efforts to address this issue reflect a determination to maintain its position in global markets. The government’s actions signal a thoughtful and strategic response, ensuring that Sri Lanka’s economy continues to thrive despite global challenges.