The Ceylon Chamber of Commerce (CCC) has issued a stark warning regarding the potential economic fallout from the United States’ imposition of a 44% tariff on Sri Lankan exports.
The chamber expressed “deep concern” over the development, highlighting the significant impact it could have on the country’s trade and economic stability.
With the US accounting for approximately USD 3 billion in exports and representing a crucial 25% of Sri Lanka’s total merchandise export, the CCC emphasized the severity of the situation. The newly implemented tariffs pose a substantial challenge to the country’s export sector, which is already grappling with broader global trade disruptions.
“These disruptions could significantly slow economic growth, affecting overall demand in key export markets such as the US and the EU,” the CCC said in a press release.
The chamber also welcomed President Anura Kumara Dissanayake’s initiative in establishing a committee to evaluate the impact of the US tariffs and develop solutions to mitigate potential risks to the export sector. However, they stressed the urgency of the matter, particularly given Sri Lanka’s current economic climate.
“Since we are halfway through the IMF Extended Fund Facility programme and navigating a tight fiscal space, it is vital that Sri Lanka is able to negotiate down from the high tariff band,” the CCC said. “It is an opportune moment for the Government to relook at its tariff structure and implement measures that will improve trade facilitation and improve the ease of doing business.”
The CCC urged all stakeholders to engage in collaborative efforts to safeguard Sri Lanka’s trade interests, while actively pursuing diplomatic and policy-driven solutions to sustain and strengthen its export sector. (Newswire)