Sri Lanka has formally banned the import of goods produced using forced labour, effective July 10, 2026, in a move aimed at safeguarding exports from looming U.S. trade penalties.

The order was issued by President Anura Kumara Dissanayake, in his capacity as Minister of Finance, Procurement, and Economic Development. 

Under the new regulation, importers must submit documentation to the Director General of Customs certifying that their goods are produced free of forced labour.

This step comes against the backdrop of warnings from the Office of the United States Trade Representative (USTR), which recently identified Sri Lanka among 60 economies failing to impose or enforce prohibitions on forced‑labour imports. 

The USTR had proposed an additional 12.5% tariff on Sri Lankan exports to the U.S., a higher rate than competitors such as Bangladesh and Pakistan, which fall under a 10% duty.

The U.S. is Sri Lanka’s largest export market, accounting for about $3 billion in mostly apparel shipments. The apparel industry employs around 300,000 workers and reported $5 billion in exports last year, though shipments dipped 7.4% to $1.53 billion in the first four months of this year.

In response to the trade penalties, Deputy Finance Minister Anil Jayantha Fernando said Sri Lanka already maintains strong labour practices and a legal framework, but will tighten customs screening and adopt international standards to eliminate concerns over child and forced labour.

The country ratified the International Labour Organisation’s C190 convention in April, recognizing the universal right to work free from violence and harassment.

By banning forced‑labour imports, officials say Sri Lanka can avoid the additional U.S. tariffs and reinforce its commitment to ethical trade practices. (Newswire)

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Sri Lanka plans to tighten customs screening to better identify imported goods made with forced labour and to implement international labour standards in a bid to avoid new U.S. tariffs on its exports, according to a report by Reuters.

Deputy Minister of Finance Anil Jayantha Fernando told Reuters that Sri Lanka already has strong labour practices and a legal framework in place, but will take further measures to eliminate concerns over child labour and forced labour. 

He said the country will adopt the International Labour Organisation’s C190 convention, ratified in April, which recognises the universal right to work free from violence and harassment.

The U.S. is Sri Lanka’s largest export market, accounting for about $3 billion in mostly apparel shipments. The apparel industry, which employs around 300,000 workers, reported $5 billion in exports last year, though shipments dipped 7.4% to $1.53 billion in the first four months of this year.

Sri Lanka is among 60 economies facing proposed new U.S. tariffs of up to 12.5% that could take effect next month.

Under the measures announced by the Office of the United States Trade Representative (USTR), Sri Lanka would face a 12.5% duty, higher than competitors such as Bangladesh and Pakistan, which fall under the 10% rate. A special textile mechanism has also been proposed to allow limited apparel and textile imports at reduced tariff rates.

The USTR has cited failures by 54 economies to impose prohibitions on forced labour imports, while six others, including Canada, Mexico, Pakistan, Indonesia, Ecuador, and the EU, were found to have failed to enforce existing regimes. 

U.S. Trade Representative Jamieson Greer said such failures “create a dynamic where American workers are forced to compete globally on an uneven playing field,” adding that Washington “will no longer tolerate this disparity.”

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

Fernando said talks with the Office of the United States Trade Representative are ongoing, though Sri Lanka does not yet plan to send a delegation to Washington. (Newswire)

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Opposition Leader Sajith Premadasa has criticized the government for maintaining the highest tariff rate in the region on U.S. garment exports, warning that it places Sri Lanka’s industry at a severe disadvantage.

Taking to ‘X’, Premadasa pointed out that while Bangladesh secured a tariff reduction to 19% and India to 18%, Sri Lanka remains at 20%, with no concessions for the garment sector. 

“With 70% of US exports being garments, a 20% tariff will make Sri Lankan products significantly less competitive than other alternatives,” he said. 

Premadasa accused the government of not realizing the implications of having the highest tariff in the region, with no concessions for the garment sector. (Newswire)

While Bangladesh secured a deal dropping its tariff to 19%, and India at 18% , Sri Lanka remains at 20%, effectively the highest burden in the region especially when factoring in sector-specific hits.
With 70% of US exports being garments, a 20% tariff will make SL products… https://t.co/DFdYSsoc2F

— Sajith Premadasa (@sajithpremadasa) February 10, 2026

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Secretary to the Ministry of Finance Dr. Harsha Suriyapperuma said the reduction of the United States tariff rate on Sri Lankan exports to 20% marked progress toward one of the country’s key trade objectives.

“The primary goal was to determine how Sri Lanka could move forward while preserving its competitive position in the regional market,” he said, adding that the focus was not solely on the tariff percentage but on maintaining market share for Sri Lankan exporters of goods and services.

Suriyapperuma made these observations during a government media briefing to announce the reduced tariff rate on Sri Lankan exports to the United States to 20%, calling it a significant outcome of recent trade negotiations

He said that ensuring continued competitiveness for exporters and entrepreneurs was central to the negotiations.

Suriyapperuma said the government aimed to open the domestic market in ways that would generate mutual benefits for both countries. The talks were guided by a broader economic strategy focused on facilitating not only the trade of goods but also the transfer of knowledge and technology to support long-term growth.

He added that the government consistently assessed the impact on local industries and remained committed to safeguarding critical sectors while expanding trade access.

What did Sri Lanka offer?

Sri Lanka positioned itself as a net importer of energy, raw materials, and advanced machinery—products largely sourced for industrial and consumer use, Suriyapperuma said. 

Sri Lanka’s offer to the US involved providing market access on a non-discriminatory, competitive basis, particularly for private US suppliers, rather than through direct government-to-government agreements.

He added that discussions focused on minimizing both tariffs and para-tariffs, with trade facilitation identified as a major component of the offer. This included commitments to improve customs procedures through a national single window system, increase transparency, and reduce bureaucratic delays at border agencies—steps aimed at lowering the cost of doing business in Sri Lanka.

The trade proposal extended beyond individual product lines and included reforms consistent with the economic framework under Sri Lanka’s current IMF-supported program.

“Our offer is comprehensive,” Dr. Suriyapperuma said, “factoring in market access and the ease of doing business. We expect both foreign and domestic businesses to benefit.”

Key issues identified in talks

On labour law concerns—particularly in the apparel sector— Suriyapperuma said that the trade discussions were broad-based, centred on improving market access for local entrepreneurs and reducing production costs through technological upgrades. He affirmed that all relevant government agencies had been briefed and that no sector was excluded from consideration.

When asked about potential changes to intellectual property laws, quotas on imports such as oil or agricultural inputs, or broader trade concessions, he said that while some details remain confidential due to the nature of the negotiations, Sri Lanka has maintained transparency where possible.

He confirmed that Sri Lanka’s energy imports were part of the talks, with the aim of achieving more competitive pricing. Trade facilitation was also presented as a solution to the longstanding challenges faced by local exporters.

Will the government renegotiate with the IMF?

Responding to questions on whether the trade discussions could trigger a need to renegotiate terms with the IMF, Dr. Suriyapperuma said Sri Lanka continues to operate within agreed parameters. He added that any necessary adjustments would be discussed with all stakeholders, and that the government is working in coordination with multilateral partners and the business community.

“This is a collective effort,” he said. “We are committed to making Sri Lanka more competitive while fulfilling our international obligations.”

Suriyapperuma also expressed appreciation to officials involved in the process, including Central Bank Governor Dr. Nandalal Weerasinghe, Presidential Economic Adviser Duminda Hulangamuwa, Secretary to the Ministry of Trade Wimalendra Raja, and Sri Lanka’s Ambassador to the US Mahinda Samarasinghe. (Newswire)

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The Ceylon Chamber of Commerce says the reduction in the tariff rate from 44% to 30% is a constructive and important first step by the Government toward bringing Sri Lanka’s tariff structure for exports to the U.S. closer to that of regional competitors.

“We encourage continued engagement with the U.S. administration to secure a further reduction by 1 August, especially given that several regional peers are expected to benefit from even lower rates,” it said, in a statement.

The Ceylon Chamber of Commerce further said that progress in achieving a further reduction will be critical to strengthening Sri Lanka’s position in this key market, maintaining buyer confidence, and supporting sustained trade growth over the long term.

“The Ceylon Chamber stands ready to support the Government’s efforts in this regard through constructive dialogue, industry feedback, and coordinated advocacy,” the statement added. (Newswire)

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Sri Lanka will continue discussions with the United States on the 30% trade tariff, Secretary to the Ministry of Finance, Dr. Harshana Suriyapperuma said. 

Harshana Suriyapperuma said that further discussions will be held until the August 1 deadline.

The reduction of the 44% tariff imposed by the US to 30% was possible due to the negotiations of the Sri Lankan government with various parties, he added. 

US President Donald Trump announced yesterday that Sri Lanka has been hit with a 30% tariff by the United States.

Under the new measures, imports from Sri Lanka will see duties rise to 30%, effective from August  01. (Newswire)

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The meeting focused on Sri Lanka’s position regarding the proposed U.S. import tariffs, which initially suggested a 44% rate on Sri Lankan exports and was later revised to 30%. (Newswire)

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The Board of Investment of Sri Lanka (BOI) has initiated industry-level dialogue for the way forward related to the recently imposed US reciprocal tariffs on Sri Lanka. 

BOI Chairman, Arjuna Hearth, invited all top 50 exporters of the BOI in key industries to open a dialogue to seek alternative strategies to mitigate the consequences due to the new US tariff.

Also participating in the meeting, Senior Advisor to the President, Duminda Hulangamuwa, explained what government initiatives have been taken so far to achieve positive outcomes and stage the negotiations. 

“The diplomatic-level discussion has already taken place, and our diplomatic officers in Washington, DC, have already established communication with the respective trade delegates at the White House’s trade department. Almost 70 countries have already reached out to the US to seek individual consultations from the US government on specific tariffs to reach a further consensus. 

“There is a diverse range of Sri Lankan businesses that export to the United States, and around 200 of these are BOI enterprises. In 2024, the U.S. goods trade deficit with Sri Lanka was approximately $2.6 billion, with U.S. goods imports from Sri Lanka totaling $3.0 billion and exports to Sri Lanka at $368.2 million,” he said. 

He further said that the representatives from the apparel industry, rubber industry, food industry, and ornament industry also participated in the discussion. 

“We extensively discussed the differential tariffs of competitive countries in Sri Lanka and their impact on each sector. The very recent 90-day pause on reciprocal tariffs has had a positive impact and resumed most of the customers’ orders, yet industries are looking beyond the 90 days and alternatives to secure their business,” he said.  

During the discussion, it was highlighted that most countries are seeking alternative trade agreements and new market opportunities to mitigate the US’s impact on specific economies and seek further trade relationships. These developments encourage Sri Lankan industries to explore partnerships with emerging markets and diversify their supply chains. By fostering collaborations with countries outside the traditional trading powers, they can enhance their resilience and adaptability in an ever-changing global landscape. (Newswire)

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Opposition MPs who participated in the All-Party Conference convened by the government today expressed support for President Anura Kumara Dissanayake’s efforts to address the reciprocal tariffs imposed on Sri Lanka by the United States.

Samagi Jana Balawegaya (SJB) MP Harsha de Silva described the discussions with the government and other opposition members as productive. Speaking to the media, he said there was consensus on responding to the challenges of the US tariffs. “The President respected our views and we had a very productive discussion,” he said. 

Posting on X, de Silva said there was a “common agreement that while we do everything to strengthen trade with [the] world [the] immediate issue is to arrive at a ‘HS Code based bilateral trade deal’ with the US.” He also underscored the urgency of resuming talks on the Economic and Technology Co-operation Agreement (ETCA) with India.

Illankai Tamil Arasu Kachchi (ITAK) MP Shanakiyan Rasamanickam said his party raised concerns over the potential loss of the European Union’s GSP Plus trade concession, which could affect Sri Lanka’s apparel sector. He also highlighted the need to address both import and export tariffs, particularly the CESS, which he claimed benefits a select group of businessmen.

However, Rasamanickam noted that ITAK did not agree with the contents of a letter presented to the President by MP Dilith Jayaweera’s party.

SJB MP S. M. Marikkar said there were no significant differences between the government’s proposals and those of the opposition. “It appears that we are in agreement on certain things like investments, markets, and free trade agreements,” he said.

The All-Party Conference, chaired by President Dissanayake, was held at the Presidential Secretariat to discuss the US-imposed tariffs on Sri Lankan exports.

Previously, Leader of the House, Minister Bimal Rathnayake, revealed the meeting was organized following a request by 12 opposition party leaders to meet with the President to address the issue.

The administration of US President Donald Trump recently imposed a 44% reciprocal tariff on Sri Lankan goods, effective April 9, 2025, as part of Trump’s revised trade policy.

On Wednesday night, Trump announced a 90-day pause on the new tariffs for affected countries but escalated trade tensions with China by imposing a 125% levy on Chinese exports to the US. (Newswire)

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An All-Party Conference, chaired by President Anura Kumara Dissanayake, to discuss the reciprocal tariffs imposed by the US Government commenced at the Presidential Secretariat today. 

Leader of the House, Minister Bimal Rathnayake, yesterday revealed that the meeting had been organized based on a request made by 12 opposition party leaders to meet the President for a discussion on the matter. 

The Donald Trump-led US Government recently imposed 44% reciprocal tariffs on Sri Lankan goods under Trump’s revised trade policy, effective from 09 April 2025.

The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, placed Sri Lanka among the countries facing the highest tariff rates globally. 

However, in a surprise move yesterday, US President Donald Trump said he is applying a 90-day pause on new tariffs as his trade war shakes the world economy. 

According to the White House Press Secretary, Karoline Leavitt, the pause means a “universal 10%” tariff will be in place for all countries, other than China. (Newswire)

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US President Donald Trump has boasted “jobs and factories will come roaring back” as he unleashed unprecedented tariffs around the world during his “Liberation Day” address.

With his sweeping global tariffs now in effect, steep price hikes on products ranging from clothing to electronics could largely be borne by American consumers. Now, a prominent tech analyst has warned that the price of an Apple iPhone could soar to around $3,500 if they were made in the US.

The president and his economic officials have promised that, as a result of the tariffs, numerous manufacturing jobs will eventually be “reshored” to US, employing millions of Americans.

But Dan Ives, global head of technology research at financial services firm Wedbush Securities, told CNN’s Erin Burnett that the idea is a “fictional tale.”

US-made iPhones could cost more than three times their current price of around $1,000, he added, because it would be necessary to replicate the highly complex production ecosystem that currently exists in Asia.

“You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” he said, referring to fabrication plants, or high-tech manufacturing facilities where computer chips that power electronic devices are normally made.

And even then, it would cost Apple about $30 billion and three years to move just 10% of their supply chain to the US to begin with, Ives told Burnett on Monday. CNN has reached out to Apple for comment.

The making and assembly of smartphone parts shifted to Asia decades ago, as American companies largely focused on software development and product design, which generate much higher profit margins. That move has helped make Apple one of the world’s most valuable companies and cement itself as a dominant smartphone maker.

Since Trump’s inauguration in late January, Apple’s shares have lost around 25% of their value due to concerns about the impact of tariffs on its sprawling supply chain, which is highly dependent on China and Taiwan. About 90% of iPhones are assembled in China.

“That’s why I think you see what’s happened to the stock, because no company is more caught up in this tariff front and center in this category five storm than Cupertino and Apple,” he said. “It’s an economic Armageddon, but especially for the tech industry.”

The chips that power iPhones are mainly manufactured in Taiwan, while its screen panels are supplied by South Korean companies. Some other components are made in China, and final assembly mostly takes place in the country.

In February, Apple announced it would invest $500 billion in the US over the next four years as part of its effort expand production outside China and to avoid Trump’s tariffs on the country.

Tech analysts agree that iPhone prices are likely to rise, even if supply chains stay where they are. Rosenblatt Securities, a New York-based investment bank, said iPhones could be 43% more expensive, should Apple pass on the entire cost of higher tariffs to consumers, according to a research note cited by Reuters.

Neil Shah, vice president of research at Counterpoint Research, estimates that iPhone could cost about 30% more, but this could depend on where they are made.

Apple has previously been seeking to diversify its production bases from China to India and Brazil and could look to shift production of key components to countries that face lower tariff barriers to keep the cost of its phones down. India faces 26% tariffs, whereas Brazil has been hit with 10%. Although Trump’s tariffs on Brazil are the lowest among key iPhone manufacturing centers, it probably doesn’t produce enough capacity to fill the gap left by China, Shah said. (CNN)

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US President Donald Trump bragged Tuesday night that world leaders panicked by his sweeping tariffs are ‘kissing my a**’ in desperate bids to reduce the levies. 

He was speaking at a National Republican Congressional Committee (NRCC) dinner on Tuesday night.

A defiant Trump said countries are “dying to make a deal” with the United States, while he also hit out at Republicans speaking out against his tariff plans.

What Trump said on tariffs

MAGA supremo Donald Trump claimed on Tuesday that many countries are calling him and “kissing my a**… dying to make a deal” after he unleashed a tariff war that has upended global trade. Although he did not identify any countries but said they were calling him and saying “please please sir let me make a deal, I’ll do anything, I’ll do anything sir.”

“I’ll see some rebel Republican, some guy that wants to grandstand, say: ‘I think that Congress should take over negotiations,'” Trump said. “Let me tell you: You don’t negotiate like I negotiate.”

Trump’s speech came against an economic backdrop of sharp market losses and fears of a recession in the wake of his tariffs. China has been hit the hardest with a 104 percent tariff across all imports starting on Wednesday. It comes after China vowed to “fight to the end” in the trade war.

Last week, the President revealed that he had a “very productive call” with To Lam, General Secretary of the Communist Party of Vietnam, “who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the US.” On Monday, he spoke of a call with South Korea’s acting president to discuss trade issues. Israel’s Prime Minister Benjamin Netanyahu also met him in the Oval Office. Beyond this, the White House has not released any call records, much less detailed any a** kissing.

Tariffs on pharma soon?

During his address at the fundraising gala, Trump said he would be announcing major tariffs on the pharma sector soon.

“Tariffs on pharma will be there because we don’t make our own pharma drugs, they are made in another countries. Same packet in the US is price, sometime is price 10-times more. We are going to tariff pharma in such a way that cos will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce major tariff on pharma and when these cos hear that, they will leave China and other countries because most of their products are sold here. And, they will be opening their plants here,” Trump said.

Trump also mocked US lawmakers who are trying to reclaim legislative powers to impose tariffs, saying Congress sucks at negotiation and he knows what he’s doing. “I know what the hell I’m doing. I know what I’m doing, and you know what I’m doing, too. That’s why you vote for me.”

“That’s no way to talk about other countries. All his negotiating tactics could be turned against him, and the American people would end up paying for all his arrogance,” one supporter wrote on X.

Last week, Trump defended his “reciprocal” tariffs that he announced on April 2, saying the U.S. will do “much better” economically as a result.

Trump added that several countries are wanting to negotiate a deal with the U.S. to avoid paying the so-called “Liberation Day” tariffs. Japan, South Korea and Italy are said to be among the affected countries that are now attempting to reach a new trade agreement with the U.S. (Economic Times)

Just In: President Trump says “Countries are kissing my ass”

Wild times. pic.twitter.com/I0uVtDg2rd

— Joshua Jake (@itzjoshuajake) April 9, 2025

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Leader of the House, Minister Bimal Rathnayake, has announced that President Anura Kumara Dissanayake will convene an all-party meeting this week to discuss the recently imposed US tariffs. 

In a statement on ‘X’, Minister Rathnayake said the President will meet all party leaders at the Presidential Secretariat tomorrow, 10 April 2025.

“The discussion will focus on the impact of unusual US Tariffs on our exports. Today morning, 12 opposition party leaders requested to meet the president to discuss the issue,” he added. 

The Donald Trump-led US Government recently imposed reciprocal tariffs on several countries, including Sri Lanka. 

A 44% tariff was imposed on Sri Lankan goods by the United States under President Donald Trump’s revised trade policy, effective from 09 April 2025.

The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, places Sri Lanka among the countries facing the highest tariff rates globally. (Newswire)

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Former Minister Rajitha Senaratne says if Ranil Wickremesinghe was still serving as the President, Sri Lanka could have had a chance to remove the 44% tariff imposed on Lankan exports to the US through a single phone call.

Speaking during an interview with a YouTube channel, the former minister claimed that the tariff had been imposed during the Trump administration on the advice of billionaire entrepreneur Elon Musk.

He further stated that Elon Musk is one of the closest friends of former President Ranil Wickremesinghe and that the strong friendship could have been used to negotiate relief for Sri Lankan exporters.

Rajitha Senaratne stressed that Sri Lanka lost that opportunity since Wickremesinghe is no longer the President. 

He added that even if the 44% tax could not have been fully removed, it could have at least been reduced to around 24% if Wickremesinghe had remained in office. (Newswire)

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President Anura Kumara Dissanayake has reportedly invited all opposition party leaders for an all-party conference to discuss the US tariff issue and its impact on Sri Lanka.

An opposition MP told Newswire that the President has convened the meeting for tomorrow at the Presidential Secretariat.

The move follows requests from Opposition Leader Sajith Premadasa and several other opposition MPs, urging the President to hold a discussion on the matter.

However, there has been no official communication from the President’s Office regarding the meeting so far. (Newswire)

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The US Government has asked Sri Lanka to propose ways to reduce its trade deficit between the two nations following the announcement of 44% reciprocal tariffs, Deputy Minister of Economic Development Anil Jayantha Fernando.

Briefing the media on the impact on Sri Lanka, Deputy Minister Anil Jayantha said the tariffs, which come into effect on 09 April, would effectively reduce the competitiveness of Sri Lanka’s products. 

“The US has asked us to propose ways to reduce our trade deficit with them. We are currently exploring the best strategies to address this issue, including the possibility of revising the existing tariff structure. We have appointed a committee and are conducting discussions on a daily basis. Proposals are being submitted and we will keep everyone informed of the development in due course,” he said.

Deputy Minister Anil Jayantha further said that Sri Lanka is not among the US Government’s group of ‘Dirty 15’ countries, which are nations with substantial trade deficits that are expected to face higher tariffs. 

Also addressing the media, Deputy Minister of Finance and Planning, Harshana Suriyapperuma, said prior to the announcement of the US tariff, a discussion was held with a visiting US delegation on the impending tariff announcement. 

“Discussions were held with a US delegation overlooking the region, on the impending situation, to understand what type of an approach Sri Lanka could take. The fact that even though we have a trade deficit from the perspective of the US, the value of that trade deficit is not that significant compared to some of the other countries. An approach was identified to be addressed after the announcement of the actual numbers,” he said. 

Deputy Minister Harshana Suriyapperuma further said that, subsequent to the announcement on tariffs, swift arrangements were made for industry engagements, and as a result, a committee was appointed to discuss further and have a strategy to deal with the way forward. 

“A decision was made that Sri Lanka will reach out to a very high-level office representation from the US Administration to discuss the current situation. A virtual discussion was held for nearly an hour. Matters were explained at length, specifically highlighting that we are within the current IMF programme. So revenue consultation measures are taking place. What are the approaches that we need to take? They clarified, based on the information that they have access to at that point in time,” he said. 

Deputy Minister Harshana Suriyapperuma revealed during the discussion, the US delegation clarified that Sri Lanka will be imposed only a 44% tax and not the additional 10% tax. 

“They mentioned it is an evolving situation. We will have to wait and see the final decisions on the 09th of April. Depending on how it unfolds, we have to look at the approaches that the other countries are taking, also. So the next meeting is to be scheduled soon, which will discuss more specific outcomes,” he said. 

Deputy Minister Harshana Suriyapperuma said Sri Lanka has suggested a date for the discussion and is awaiting confirmation from the US side. 

The clarification comes after the Donald Trump-led US Government recently imposed reciprocal tariffs on several countries, including Sri Lanka. 

A 44% tariff was imposed on Sri Lankan goods by the United States under President Donald Trump’s revised trade policy.

The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, places Sri Lanka among the countries facing the highest tariff rates globally.

The United States has long been Sri Lanka’s most important export destination, accounting for 23% of total merchandise exports in 2024. Of nearly 3 billion in exports to the U.S. last year, the vast majority—over 70%—came from the apparel sector. (Newswire)

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Minister of Industry and Entrepreneurship Development Sunil Handunneththi expressed concern over the recent reciprocal tariffs imposed on Sri Lanka by the US, calling the move unexpected and potentially damaging to the country’s export ambitions.

“This is actually a big shock, This is not something that we anticipated,” Handunneththi said speaking to media. The new tariffs, he said, could hinder his governemnt’s target of increasing exports by $3 billion.

The Minister criticized the tariff rate calculation, describing the 44 percent figure as “unfair.” He explained that it was based on halving the trade deficit between the two countries, a method he said disproportionately penalizes Sri Lanka.

“The US has no political reason to do this to us,” he noted, adding that the timing is especially difficult. “We were just starting to stabilize. It will be difficult to bear at this time for Sri Lanka.”

He also commented on former President Donald Trump’s trade policies, suggesting they may not be sustainable. “President Trump’s plan may not be feasible in the long run, considering the consumption patterns of the country,” he said.

The government is expected to review the potential economic impact and consider diplomatic options in response, the Minister said. (Newswire)

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President Anura Kumara Dissanayake has appointed a committee to conduct an in-depth study and provide recommendations on the issues that could be faced by Sri Lanka due to the reciprocal tariffs imposed by the US Government.

According to the President’s Media Division (PMD), the committee consists of experts from various sectors of Sri Lanka, including apparel, as well as state officials.

The Secretary to the Finance Ministry, Governor of the Central Bank of Sri Lanka (CBSL), Chairman of the Sri Lanka Board of Investment (BOI), Chairman of the Sri Lanka Export Development Board (EDB), and the Director General of the Economic Affairs Unit of the Foreign Ministry have been appointed to the committee.

The newly appointed committee also includes Senior Presidential Advisor Duminda Hulangamuwa, Chief Economic Policy Advisor of the Ceylon Chamber of Commerce Shiran Fernando, and top Sri Lankan businessmen Ashroff Omar, Sharad Amalean, and Saif Jafferjee.

The President has appointed this new committee following the imposition of a 44% tariff on Sri Lankan goods by the United States under President Donald Trump’s revised trade policy.

The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, places Sri Lanka among the countries facing the highest tariff rates globally. (Newswire)

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Deputy Minister of Foreign Affairs & Foreign Employment Arun Hemachandra says the Sri Lankan Government takes full responsibility for addressing the recently imposed US reciprocal tariffs thoughtfully, steadily, and with the people’s interest at heart.

In a statement on Facebook, the first official response from a government representative, Deputy Minister Arun Hemachandra, said that through careful diplomacy, practical action, and working hand-in-hand with Sri Lanka’s international partners, the government will protect the economy and the nation’s future.

He further said that the recent tariff announcement by U.S. President Donald Trump has added new pressures to global trade, including for countries like Sri Lanka, which have long-standing economic ties with the United States.

Deputy Minister Arun Hemachandra pointed out that Sri Lanka’s tariff structure was not something created overnight and that it reflects a structure shaped by past policy directions. 

“But as a government, we take full responsibility for addressing it—thoughtfully, steadily, and with the people’s interest at heart. We know how hard our exporters, workers, and entrepreneurs have worked to earn their place in global markets. And we want to assure you—this government will do everything necessary to safeguard those efforts. Through careful diplomacy, practical action, and working hand-in-hand with our international partners, we will protect our economy and our future,” he assured.

Stating that this is not a moment for fear but a moment for focus, he added that the government is focused and that Sri Lanka will move forward calmly, confidently, and together. (Newswire)

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The 44% US tariff is not just a trade issue, but a wake-up call, said Opposition Leader Sajith Premadasa, raising concerns over the recent reciprocal tariffs imposed on Sri Lanka by the US Government.

Taking to ‘X’, MP Premadasa said those who are now in the government blocked every trade deal in the past, distrusted globalization, and saw investment as an intrusion. 

MP Premadasa said that the legacy must end, and they have to switch up their stance. 

Stating that Sri Lanka needs a strategic reset, MP Premadasa made the following suggestions;

• Embrace partnerships over paranoia.
• Stop the hate-mongering for the sake of appeasing some local cartels.
• Build an Asia-centric trade strategy with India, ASEAN & Bangladesh.
• Shift from tariffs to production-led, investor-friendly growth.

The Opposition Leader emphasized that, above all, Sri Lanka must stop the silent defiance of the regional interests of other nations. 

“Protecting mutual interests is the only way forward. Posturing is not strategy. Mature nations negotiate. It’s time we did too,” he added. 

His comments come at a time when the Donald Trump-led US administration issued an executive order imposing a 44 per cent tariff on Sri Lankan goods.

Issuing the order, the US Government said it was a reciprocal measure to what they described as the 88 per cent in taxes and trade barriers imposed by Sri Lanka on the United States. (Newswire)

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