IMF urges Lanka to diversify trade amidst global tariff risks

Sri Lanka and other small Asian economies must accelerate trade diversification or face heightened vulnerability to global tariff disputes and shifting supply chains, warned Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund (IMF).

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Speaking in Colombo on the evolving global trade landscape, Srinivasan highlighted Asia's growing exposure, particularly in the wake of tariff tensions between the United States and China. "Asia benefited a lot from trade integration, benefited a lot from openness to trade," he said. "So much so that when tariffs were imposed by the US, Asia was subject to the highest level of tariffs."