Sri Lanka limited to negotiating US tariffs with trade reforms on backburner

Economist Prof. Priyanga Dunusinghe warns without competitiveness and diversification, economy will remain vulnerable Says business environment remains weak, productivity not improved Notes unless SL acts, will remain vulnerable to every tariff change or market shift dictated by larger powers

- 

UNIVERSITY of Colombo Professor in Economics and Department of Information Technology Head Prof. Priyanga. Dunusinghe last week said that Sri Lanka's response to global trade tensions has so far been limited to negotiating for better tariff terms with the US, while flawed trade policies that contributed to the 2022 economic crisis remain largely unchanged.

He said that despite some stabilisation, the economy continues to face the same weaknesses in competitiveness, productivity, and diversification that left it vulnerable in the first place. According to Prof. Dunusinghe, who is also a member of the Central Bank's Monetary Policy Board, this lack of reform leaves the country exposed to the protectionist trade policies now being pursued by major economies.

He said Sri Lanka had failed to act quickly enough on the causes of the 2022 economic collapse.