News Today: Sri Lanka to Discuss Tariffs with the US in Diplomatic Talks

Sri Lanka’s Minister of Labour, Anil Jayantha, announced today that the government plans to initiate diplomatic talks with the United States regarding the new reciprocal tariff system set to be implemented by US President Donald Trump. The government aims to explore the possibility of reducing the tariff and to discuss trade and investment policies that can benefit both nations.

The Minister revealed that the government intends to begin these discussions before the tariff is enforced on April 9th. He refuted opposition claims that the government failed to intervene to prevent the tax, stressing that the government has already engaged with relevant institutions to strategize potential measures.

“We cannot prevent the US trade policy. We need to discuss. We have already exchanged views with them,” Jayantha stated. He further emphasized that Sri Lanka is in a unique position to explain its economic challenges, particularly its current situation with the International Monetary Fund (IMF). The discussions will aim to address these concerns while complying with US policies.

The Minister highlighted the negative impact the new tariff system could have on Sri Lanka’s key industries, particularly apparel and food exports. With the tariff in place, the prices of Sri Lankan exports to the US could rise, reducing competitiveness and demand. This would, in turn, lead to lower export revenues and decreased profits for local exporters.

Should the talks with the US fail to produce favorable outcomes, Sri Lanka is prepared to consider alternatives. These may include negotiations for special benefits under the GSP+ facility, as well as efforts to simplify Customs duties. The government also hopes to establish long-term trade relationships with the US that can mutually benefit both countries.

Jayantha concluded by emphasizing that the aim of these diplomatic discussions is not only to address immediate trade concerns but also to lay the foundation for future collaboration that will foster trade and investment between the two nations.