The Public Utilities Commission of Sri Lanka (PUCSL) has decided that electricity tariffs will remain unchanged for the third quarter of 2026, despite rising generation costs.

Issuing a statement, the PUCSL said the decision follows a review of cost estimates submitted by the National System Operator Company (14500). 

PUCSL said the increase in supply costs is limited to 0.3 percent (Rs. 417 million), making a tariff revision unnecessary. The tariff system applied in the second quarter will continue.

According to PUCSL, the first‑quarter revenue surplus of Rs. 30,118 million, which included additional coal‑related generation costs later excluded from tariffs, has been carried forward, leaving a balance of Rs. 26,753 million. When added to the estimated third‑quarter supply cost of Rs. 159,274 million, the total cost amounts to Rs. 186,027 million.

Revenue for the quarter, based on current tariffs, is calculated at Rs. 156,244 million. PUCSL noted that additional income sources, including the Rs. 6,943 million profit from 2025, government subsidies of Rs. 9,650 million for consumers, and Rs. 17,213 million for the National System Operator’s operations, bring total revenue to Rs. 185,610 million.

With the cost exceeding revenue by only Rs. 417 million, PUCSL concluded that no tariff hike is required for the quarter. (Newswire)

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The Ministry of Finance announced today that the United States has reduced the proposed 12.5% additional tariff on Sri Lankan exports to a minimum of 10%, following Sri Lanka’s decision to ban the import of goods produced using forced labour.

According to the Ministry, the move is expected to deliver positive results for exporters, while reflecting Sri Lanka’s ongoing commitment to fair trade, responsible business practices, and internationally accepted labour standards.

Officials said the tariff adjustment will enhance the competitiveness of Sri Lankan exports in the US market, sending a strong signal to investors and buyers about the country’s dedication to sustainable economic reforms.

The Ministry added that the revision demonstrates Sri Lanka’s determination to build a modern, competitive trading environment that supports exporters and contributes to sustainable economic growth. (Newswire)

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The United States is set to impose new tariffs that could hit dozens of countries soon, trade envoy Jamieson Greer signalled on Tuesday (Jul 21), with President Donald Trump’s temporary global levies due to expire this week.

The Trump administration has prepared fresh tariffs targeting 60 trading partners over their alleged failures to act against forced labour, as officials push to rebuild the US leader’s trade agenda after legal setbacks.

“We expect to see some action soon,” Greer told CNBC when asked if new duties were incoming. He did not specify a timeline.

Trump imposed a 10 per cent global duty this year after a swath of his tariffs were struck down by the Supreme Court in February, but this levy expires on Friday.

Analysts expect that new tariffs over forced labour concerns – set between 10 per cent and 12.5 per cent – would replace these temporary duties.

They come as Trump makes a renewed push to use tariffs as leverage against US trading partners, sparking fears of retaliation and diplomatic tensions.

Washington announced a fresh 25 per cent duty on certain Brazilian goods last week, and on Monday unveiled a 50 per cent levy on many Canadian products to take effect in 30 days.

Canadian Prime Minister Mark Carney said Tuesday that he was looking at “all options”, adding that he and Trump had agreed to “intensify discussions” in the coming weeks on a possible deal.

On Tuesday, Trump announced a new 100 per cent sector-specific tariff on imported generic drugs to take effect from August 2028, with that level rising to 200 per cent in 2029.

For now, the US leader said the tariff on generic drugs would be cut to zero from August 2026, in an effort to build a window for the onshoring of such pharmaceutical production to the United States.

FORCED LABOUR CONCERNS

Greer said Tuesday that new action on forced labour will cover the majority of US trade, with the moves likely to reignite trade tensions.

A 10 per cent tariff rate would hit US imports from partners including Canada, the European Union, Mexico, Taiwan and the United Kingdom. They were found to have taken steps against forced labour.

Goods from over 40 other major economies like China, India and Japan face a 12.5 per cent levy.

The EU previously said that it considers tariffs imposed on these grounds “unjustified”. (CNA/ AFP)

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US President Donald Trump signed orders Monday (Jul 20) to impose new 50 per cent tariffs on many Canadian goods, claiming “discriminatory treatment” by Ottawa against American alcohol, automobile and dairy products.

The tariffs will take effect in 30 days and cover a range of items including wine, hockey sticks and cement, according to a White House fact sheet.

Trump, who saw many of his tariffs struck down by the Supreme Court earlier this year, tapped an untested legal provision for the new duties – Section 338 of the Tariff Act of 1930.

The latest duties will not apply to energy, potash and goods already impacted by sector-specific tariffs, the White House said.

Crucially, however, they will hit products covered under the US-Mexico-Canada free trade agreement (USMCA).

While Trump has slapped sweeping duties on US trading partners since returning to the presidency last year, the orders have generally exempted goods entering his country under the North American free trade pact.

His latest actions threaten to further strain ties between Washington and Ottawa, and come just days after he threatened Canada with increased tariffs over wildfire smoke that drifted into the United States.

The White House, in announcing the new tariffs, said Canada was one of only two countries – along with China – to retaliate against Trump’s sweeping tariffs last year.

It also took aim at the fact that most Canadian provinces have halted purchases of US alcohol, boycotting the products over Trump’s tariff threats and repeated calls for annexation of Canada as America’s “51st state”.

“Canada has taken US alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on US vehicle exports to Canada from companies reshoring to the United States,” charged US Trade Representative Jamieson Greer in a statement.

The tariff announcement aims to “hold Canada accountable for its retaliation and discrimination”. he added.

“LITIGATION RISK”

Trump’s move marks the first time that Section 338 has been used to impose tariffs, Scott Lincicome of the libertarian Cato Institute told AFP.

Many experts believe that the law has been superseded by other authorities, he said, arguing that Trump has “demonstrated a willingness to use and abuse any statute on the books”.

Ryan Majerus, a former US trade official, told AFP that the law is “subject to a lot of litigation risk” and has never been tested.

“This is clearly designed to get some leverage over Canada,” added Majerus, who is now a partner at law firm King & Spalding.

He noted that negotiations surrounding the USMCA were ongoing, and that the United States’ talks with Mexico have proceeded at a much faster pace than those with Canada.

“This could be an effort to try to get them going,” he said, pointing to the 30-day delay in the tariffs’ implementation.

If the tariffs were to take effect as announced, however, Majerus expects that the removal of exemptions for USMCA imports would be highly negative to US supply chains and businesses. (CNA/ AFP)

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Sri Lanka is among 60 economies targeted by the Office of the United States Trade Representative (USTR), which has proposed additional tariffs after determining that these countries have failed to impose and effectively enforce prohibitions on the importation of goods produced with forced labour.

Under the proposed measures, Sri Lanka would face a 12.5% additional duty on its exports to the United States, as it has neither imposed nor effectively enforced a prohibition on forced labour imports.

For economies that have imposed partial regimes or committed to prohibitions through reciprocal trade agreements, the USTR has proposed a lower 10% duty. 

All others, including Sri Lanka, fall under the higher 12.5% tariff rate. A special textile mechanism has also been proposed to allow limited apparel and textile imports at reduced tariff rates.

The list of affected economies includes major trading partners such as China, India, Japan, South Korea, the United Kingdom, the European Union, Canada, Mexico, Australia, Brazil, and South Africa, alongside Sri Lanka and dozens of others. 

In total, 54 economies were found to have failed to impose prohibitions, while six, including Canada, Mexico, Pakistan, Indonesia, Ecuador, and the EU, were cited for failing to effectively enforce existing regimes.

United States Trade Rep Jamieson Greer said the failure of trading partners to address forced labour imports “creates a dynamic where American workers are forced to compete globally on an uneven playing field,” adding that the U.S. “will no longer tolerate this disparity.”

Public hearings on the proposed actions are scheduled for July 7, 2026, with written comments due by July 6 and requests to appear at hearings by June 22. 

Full statement : https://ustr.gov/about/policy-offices/press-office/press-releases/2026/june/ustr-makes-findings-and-proposes-action-60-section-301-investigations-relating-failures-take-action (Newswire)

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The Public Utilities Commission of Sri Lanka (PUCSL) has announced a revision of electricity tariffs for the second quarter of 2026, with increases varying based on monthly electricity consumption.

According to the revised rates, consumers using up to 30 units per month will see a 4.3 per cent increase, amounting to approximately Rs. 15.

Households consuming between 31 and 60 units will face a 6.9 per cent increase, equivalent to about Rs. 45, while those using 61 to 90 units will also see a 6.9 per cent increase, translating to roughly Rs. 120.

Consumers in the 91 to 180 unit category will experience a 7.2 per cent increase, amounting to around Rs. 420.

Meanwhile, users consuming more than 180 units per month will see the highest increase, with tariffs rising by 25 per cent.

The PUCSL said the revision applies to the second quarter of 2026, with the adjustments introduced based on prevailing costs and sector requirements. (Newswire)

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The Public Utilities Commission of Sri Lanka (PUCSL) is scheduled to announce its final decision on electricity tariff revisions for the second quarter of 2026 at 2.00 pm today (30).

The announcement follows the conclusion of the public consultation process, which gathered islandwide feedback, including a final session held in the Western Province.

The PUCSL is currently reviewing a proposal submitted by the Ceylon Electricity Board (CEB) on February 13, seeking a 13.56% increase in electricity tariffs for the April–June period. 

The CEB cited a projected revenue shortfall of Rs. 15.8 billion, with total supply costs estimated at Rs. 136.5 billion against expected revenue of Rs. 116.9 billion under existing tariffs.

According to the submission, the proposed increase would be applied uniformly across all consumer categories.

The PUCSL’s decision later today will determine whether the proposed hike is implemented, marking the official tariff adjustment for the second quarter of 2026. (Newswire)

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Stakeholder engagement on proposed tariff reforms has commenced as part of the implementation of the 2026 Budget proposals aimed at supporting domestic industries.

The initiative is being jointly carried out by the Ministry of Finance, Planning and Economic Development, the Ministry of Industry and Entrepreneurship Development, the World Bank, and other relevant agencies. Its primary objective is to raise awareness of the proposed Four-Band Tariff Policy.

As part of this effort, the Department of Trade and Investment Policy organized an Awareness and Consultative Programme on February 10, 2026, at the Galle Face Hotel in Colombo, engaging key stakeholders in the ongoing policy development process.

The event was attended by Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Treasury Harshana Suriyapperuma, Secretary to the Ministry of Trade K. A. Vimalenthirarajah, and Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara.

Richard Walker, Senior Economist at the World Bank Group, and other World Bank representatives were also present, along with senior officials from the Ministry of Finance, Planning and Economic Development, including A. K. Senavirathna and A. N. Hapugala, both Deputy Secretaries to the Treasury.

Representatives from the National Tariff Policy Committee, the Industry Advisory Committee, trade chambers, and other government institutions participated in the session.

The programme aimed to provide an overview of the proposed tariff reforms and to gather feedback from stakeholders through consultation and dialogue.

The proposed tariff structure, aligned with the United Nations’ Broad Economic Classification (BEC) Revision 5, is designed to promote export growth, strengthen domestic industries, facilitate trade, and ensure fiscal sustainability. (Newswire)

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Bangladesh has secured a reduced 19 percent tariff rate with the United States under a trade agreement signed between the two countries, granting exemptions for some textiles and garments manufactured with US material.

The trade deal was announced on Monday.

Muhammad Yunus, the chief adviser heading Bangladesh’s interim government, said Washington had “committed to establishing a mechanism for certain textile and apparel goods from Bangladesh using US-produced cotton and man-made fibre to receive zero reciprocal tariff in [the] US market”.

The White House said Bangladesh had agreed to provide significant preferential market access for US industrial and agricultural goods, including chemicals, medical devices, machinery, motor vehicles and parts, soya products and dairy goods, beef, poultry, tree nuts and fruit.

Bangladesh will also ease non-tariff barriers by accepting US vehicle safety and emissions standards, recognising US Food and Drug Administration certifications, and removing import restrictions on remanufactured goods, the White House added.

The nations also noted recent and upcoming commercial deals including aircraft procurement, around $3.5bn in purchases of US agricultural products, and an estimated $15bn in US energy product purchases over 15 years.

Yunus said the agreement followed nine months of negotiations that began in April last year.

Bangladesh also pledged to uphold internationally recognised labour rights and strengthen environmental protections.

The South Asian nation in August had secured a reduction in US tariffs on its exports to 20 percent, down from 37 percent initially proposed by Washington, offering much-needed relief to the nation’s apparel exporters.

The ready-made garments sector is the backbone of Bangladesh’s economy, accounting for more than 80 percent of total export earnings, employing about four million workers and contributing about 10 percent to gross domestic product.

At the 19 percent tariff rate, Bangladesh will compete comfortably with next-door neighbour India, for which the tariff rate has been set at 18 percent, down from a crippling 50 percent. Both countries make clothing and footwear for clients in the US. When the first round of tariffs was announced on April 2, India had been slammed with 25 percent while Dhaka had been given a much stiffer 37 percent. At the time, Bangladeshi manufacturers feared that they would lose clients to the Indian market. Now both are on an equal footing.

Bangladesh goes to the polls on Thursday to elect new leadership after being governed by an interim government since August 2024, when ousted former Prime Minister Sheikh Hasina fled to India, where she remains. (Al Jazeera)

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US President Donald Trump said Thursday that he was immediately ending all trade talks with Canada, accusing it of misquoting former president Ronald Reagan in an advertising campaign against tariffs.

“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump said on his Truth Social network.

“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.”

The latest extraordinary twist in relations between the North American neighbors comes just over two weeks after Canadian Prime Minister Mark Carney visited Trump in the White House to seek a relaxation of stiff US tariffs.

The Ronald Reagan Foundation said on X that the government of the Canadian province of Ontario had used “selectively audio and video” from a radio address to the nation to the nation on trade by Reagan in April 1987. 

It said the ad “misrepresents” what the Republican former actor had said in his address, adding that it was “reviewing its legal options in this matter.”

Trump said the ad was designed to “interfere with the decision of the US Supreme Court,” which is due to rule on his sweeping global tariffs. 

The sudden decision to end trade talks will come as a blow to Carney, whom Trump described as a “world-class leader” when they met on October 7, adding that the Canadian would be “very happy” with their discussion. 

At the time, however, Trump offered no immediate concessions on tariffs. 

Roughly 85 percent of cross-border trade in both directions remains tariff-free as the United States and Canada continue to adhere to an existing North American trade deal called the USMCA.

But Trump’s global sectoral tariffs — particularly on steel, aluminum, and autos — have hit Canada hard, forcing job losses and squeezing businesses. (France 24)

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The Ceylon Electricity Board (CEB) has announced the implementation of the new tariff for purchasing electricity from Battery Energy Storage Systems (BESS) that are integrated with existing ground-mounted solar PV plants, as well as Rooftop Solar Systems.

According to a CEB statement, under this scheme, electricity discharged from battery storage systems during the night-peak period from 06.30 pm to 10.30 pm will be purchased by the CEB at a rate of Rs. 45.80 per unit (kWh).

The CEB states that this new tariff is designed to encourage solar power producers to adopt energy storage technology, allowing electricity generated during the daytime to be stored and supplied to the national grid during the night, especially at times of high demand.

Per the CEB, eligible customer categories for the new tariff are existing ground-mounted solar power developers and rooftop solar PV customers. (Newswire)

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The Public Utilities Commission of Sri Lanka (PUCSL) has announced that it has decided not to revise electricity tariffs.

Addressing the media today, PUCSL Chairman Prof. K.P.L. Chandralal said that the existing tariff will remain for the next three months, effective from midnight today (14 Oct.).

Prof. K.P.L. Chandralal noted that the decision was taken after reviewing written and oral submissions received during the public consultation process held on the proposed tariff revision. 

The Ceylon Electricity Board (CEB) had submitted a tariff review proposal on 27th August 2025, covering the quarter of October–December 2025, in accordance with Section 30 of the Sri Lanka Electricity Act No. 20 of 2009.   

The CEB has requested a 6.8% tariff increase, citing rising costs in generation, distribution, and finance. 

The PUCSL last approved an electricity tariff hike of 15% on 12th June 2025. (Newswire)

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The Public Utilities Commission of Sri Lanka (PUCSL) says the tariff revision for the last quarter of 2025 submitted by the Ceylon Electricity Board (CEB) proposes a 6.8% tariff hike. 

The PUCSL has announced that it will seek public opinion on the electricity tariff revision proposal submitted by the CEB for the final quarter of 2025.

According to the PUCSL, members of the public are invited to submit their comments and proposals in writing to the Commission. Written comments and proposals must be submitted by October 7, 2025.

In addition to written feedback, the PUCSL will conduct nine public consultation sessions covering all provinces, allowing citizens to express their views orally.

These oral hearings will commence on September 18, 2025, and will focus on the CEB’s proposal for a 6.8% increase in electricity tariffs. (Newswire)

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By Suresh R I Perera

A central issue in the debate over the potential for the USA to top up 30% with an additional 18% on account of digital VAT to be introduced from October, is the widespread confusion between two fundamentally different forms of digital taxation: the Digital Value Added Tax (VAT) and the Digital Services Tax (DST).

Digital VAT: A standard consumption tax

Digital VAT is a consumption-based tax imposed on the end-user of digital services. For example, Sri Lanka’s 18% VAT on nonresident digital service providers who provide services via an electronic platform requires these companies to register locally and collect VAT from Sri Lankan consumers who purchase services such as streaming, online gaming, or cloud-based software etc. 

This system mirrors the treatment of other goods and services consumed domestically, ensuring tax neutrality and fairness. It also aligns with the OECD’s VAT/GST guidelines, which recommend taxing consumption at the point of use known as the “destination principle.” has been widely adopted by countries around the world, including Australia, New Zealand, and EU member states.

Several countries in the region that apply VAT or GST to digital services have recently benefited from reduced US tariff rates under Trump’s reciprocal trade policy. For example, India, which imposes an 18% GST on most digital services, has been assigned a lower US tariff rate of 26%. Similarly, Vietnam, with a 5% VAT on digital services, now faces a reduced US tariff rate of 20%. Despite India’s earlier use of equalisation levies (India’s version of DST), its continued application of GST on digital services provided by foreign entities highlights that VAT remains a widely accepted and standard taxation method.

Digital Services Tax (DST): A revenue-based levy

Digital Services Taxes (DSTs) emerged as a way for countries to assert their right to tax the digital economy, especially in response to perceived tax avoidance by large tech firms like Google, Amazon, and Meta. These companies often shifted profits to low-tax jurisdictions, exploiting outdated tax rules based on physical presence. In the absence of a modern global tax framework, countries introduced DSTs to capture revenue from digital activities within their borders. However, these unilateral taxes sparked opposition from the US, which viewed them as discriminatory and retaliated with trade measures.

To resolve these tensions, the OECD proposed a two-pillar solution: Pillar One, which reallocates taxing rights based on user location, and Pillar Two, which sets a global minimum corporate tax rate of 15%. While DSTs are not part of the OECD’s framework and were meant as temporary measures, many countries adopted them due to delays in global implementation. In contrast, the OECD supports VAT systems for digital services, emphasizing principles like “neutrality” between domestic and foreign suppliers, taxation based on consumption location (destination principle), mandatory registration for non-resident providers, and efficient administration through digital filing and transparent audits. 

DST targets the gross revenues of large multinational digital firms derived from specific services within a jurisdiction such as online advertising, social networking, or monetisation of user data etc. These taxes are designed to address concerns about profit shifting and the under-taxation of digital giants that operate extensively in a country without a physical presence. Unlike VAT, DSTs are not levied on consumers but directly on corporate revenues, making them more controversial in international trade discussions.

Sri Lanka’s policy: A clear case of VAT, not DST

It is important to emphasise that Sri Lanka’s 18% levy is a digital VAT, not a DST. This distinction is critical, as US trade investigations and retaliatory actions have been directed exclusively at DST regimes, which are perceived as discriminatory toward US-based tech companies. In contrast, countries that apply digital VATs in accordance with international norms have not faced similar scrutiny or sanctions from the United States. It is significant to note that currently, over 100 countries are levying VAT on cross-border Digital Services.

Suresh R I Perera is a distinguished Attorney-at-Law and Tax Principal at KPMG, with an extensive multidisciplinary background spanning taxation, law, accounting, and corporate governance

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The US Department of Homeland Security on Tuesday notified India about the plans to increase tariffs to 50% on Indian goods, signalling that the White House plans to push ahead with the higher tariffs after talks to broker a ceasefire deal between Russia and Ukraine appeared to be stalled.

The notice said Indian goods that entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 27, 2025 would attract heightened levies.

The deadline for the additional 25% tariffs to be imposed on Indian goods by the United States will end tonight and from August 27, Indian imports in America will be levied with a 50% tariff rate.

President Donald Trump-led administration has termed India’s continued purchase of Russian oil a “national security concern” and Vice President JD Vance recently told NBC News that President Trump had applied “aggressive economic leverage”, including “secondary tariffs on India” to “make it harder for the Russians to get rich from their oil economy”.

PM Narendra Modi, in a statement to support small entrepreneurs and farmers on Monday said, “No matter how much pressure comes, we will keep increasing our strength to withstand it.”  (Indian Express)

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Donald Trump said he would impose a 100% tariff on foreign computer chips, likely raising the cost of electronics, autos, household appliances and other goods deemed essential for the digital age.

“We’ll be putting a tariff on of approximately 100% on chips and semiconductors,” Trump said in the Oval Office while meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”

The Republican president said companies that make computer chips in the US would be spared the import tax. During the Covid-19 pandemic, a shortage of computer chips increased the price of autos and contributed to an overall uptick in inflation.

Trump and Cook were meeting on Wednesday to discuss an agreement for Apple to invest $100bn in manufacturing in the US over the next four years. That comes after the iPhone maker already pledged to invest $500bn domestically earlier this year. With Apple’s new investment, the total figure is now at $600bn.

Apple has been propped up as an example of a tech company that’s based in the US but conducts much of its manufacturing abroad. The vast majority of Apple’s products are made in China, for example, with about 90% of iPhones assembled there. Cook has met with Trump several times since the president took office to discuss more manufacturing in the US.

The world’s largest contract maker of chips, Taiwan Semiconductor Manufacturing Company (TSMC), was “exempt” from the tariff, an official told a parliamentary briefing in Taipei on Thursday. South Korea’s top trade envoy Yeo Han-koo said that Samsung Electronics and SK Hynix would also not be subject to the 100% levy.

Nvidia, one of the largest chip makers in the US, would likely be exempt from the tariff because the company has manufacturing facilities in the US. Inquiries sent to Nvidia and chip maker Intel were not immediately answered.

However, the plan could be harm other countries in Asia, with the president of the Philippine semiconductor industry, Dan Lachica, saying that with around 70% of the country’s exports being semiconductors, the new rules would be “devastating”.

Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organization.

Trump’s tariff threats mark a significant break from existing plans to revive computer chip production in the United States. He is choosing an approach that favors the proverbial stick over carrots in order to incentivize more production. Essentially, the president is betting that higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators.

By contrast, the bipartisan Chips and Science Act signed into law in 2022 by Joe Biden provided more than $50bn to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed.

Trump’s new 100% tariff on foreign computer chips is set to be officially announced next week and is expected to apply to all countries and companies. (The Guardian)

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The Sri Lanka Export Development Board (EDB) today held a discussion with high-level government officials and numerous export sector representatives regarding the 20% tariff recently imposed by the United States on Sri Lankan goods. 

According to the EDB, the discussion focused on planning future actions to be taken to face the impact of American tariffs.

EDB Chairman and CEO Mr. Mangala Wijesinghe opened the session, emphasizing the importance of a unified program in the export industry to face the tariff challenge. 

Strategic addresses by three key government secretaries regarding policies and support mechanisms that the government is set to implement for businesses affected by the American tariff impact were a special feature of this discussion.

Secretary of the Ministry of Finance and Planning, Dr. Harshana Suriyapperuma, provided important insights into the government’s financial strategy to support exporters affected during this challenging period. 

Secretary of the Ministry of Industry and Entrepreneurship Development, J.M. Tilaka Jayasundara, provided special insights into industrial adaptation strategies and innovation, while Secretary of the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A. Vimalenthirarajah, shared views on immediate and long-term trade policy responses.

A special feature of this discussion was the comprehensive presentation on “market opportunities available to Sri Lanka under new American tariffs” presented by Acting Director of Market Development Division, Saumya Kannangara. This presentation outlined the potential for Sri Lankan exporters to diversify their exports to find new market segments, develop alternative trade strategies, and reduce dependence on American markets.

Allocating considerable time for interactive discussion and Q&A, exporters were given the opportunity to raise specific issues, share practical experiences, and present suggestions for innovative solutions.

Rather than viewing the 20% American tariff merely as an obstacle, attention was focused on strategies for market diversification, product innovation, improving operational efficiency, and adding value to maintain competitiveness.

The session concluded with the aim of continuous dialogue, follow-up meetings, and utilizing emerging opportunities in European, Asian, and other international markets while minimizing the immediate impact of tariff restrictions. (Newswire)

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The Exporters Association of Sri Lanka says it welcomes and commends the significant progress achieved in the trade negotiations between Sri Lanka and the United States, which have led to a reduction in tariffs on Sri Lankan exports to the U.S. market, now lowered to 20%.

Issuing a statement, the Association expressed its sincere appreciation to the Government of Sri Lanka and, in particular, the dedicated efforts of the negotiation team led by Finance Ministry Secretary, Harshana Suriyapperuma. 

“This achievement reflects the strategic foresight, persistence, and professionalism of the team in navigating a complex international trade environment to secure more favourable terms for Sri Lankan exporters,” it said. 

The Exporters Association of Sri Lanka also extended its gratitude to the Ambassador of Sri Lanka to the United States, Mahinda Samarasinghe, for his steadfast diplomatic support and engagement, which have been instrumental in advancing these discussions and building stronger bilateral trade relations.

The Association said this development is a timely and much-needed boost for Sri Lankan exporters, enhancing their competitiveness in a key global market and contributing to the broader recovery and growth of our national economy.

“We look forward to continued dialogue with the Government to ensure that the momentum gained is sustained and that further trade facilitation measures are pursued to strengthen Sri Lanka’s export sector,” the Exporters Association of Sri Lanka added. (Newswire)

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The United National Party (UNP) has called on the government to make a clear statement on the ‘meaningful trade and security arrangements’ arrived at during discussions, while welcoming the revised 20% reciprocal tariff on Sri Lanka imposed by the United States.

Issuing a statement, the UNP commended the government and the negotiating team for successfully concluding negotiations. 

The UNP’s request for a clear statement from the government comes after the New Executive Order issued by US President Donald Trump said, “some trading partners have agreed to, or on the verge of agreeing to, meaningful trade and security commitments with the United States”.

The United States officially confirmed today that Sri Lanka’s reciprocal tariff rate will be 20%, reduced from the previously imposed 30% under Executive Order 14257.

Sri Lanka was listed among a group of countries that secured improved rates, which will take effect seven days after their issuance, on August 7, 2025. (Newswire)

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Opposition Leader Sajith Premadasa has applauded the revised and reduced 20% reciprocal tariff rate on Sri Lanka imposed by the United States (US).

In a post on ‘X’, MP Premadasa said that this places Sri Lanka with Vietnam and Bangladesh, while India pays a 25% tariff. 

“Glad US cut tariffs to 20 % for Sri Lankan goods. Puts us with Vietnam and Bangladesh, while India pays 25 %. We should aim for under 15% to give our exporters a real lift. We should have a team of trade economists and lead negotiators to keep pushing,” he added. 

The Opposition Leader’s comments come after the United States officially confirmed today that Sri Lanka’s reciprocal tariff rate will be 20%, reduced from the previously imposed 30% under Executive Order 14257.

The announcement was made via a presidential order issued on July 31, following months of negotiations with U.S. trade authorities. Sri Lanka was listed among a group of countries that secured improved rates after offering what the U.S. described as “meaningful trade and security commitments.”

According to the order, the revised rates will take effect seven days after their issuance, on August 7, 2025, with exemptions for goods already in transit before that date. (Newswire)

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