US TRADE COURT RULING OFFERS SRI LANKA CRITICAL BREATHER

Sri Lanka could find the much-needed breather following a surprise ruling by a U.S. trade court that blocked most of the tariffs imposed by President Donald Trump earlier this April.

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The decision, which ruled that Trump exceeded his executive authority in announcing the levies, comes at a critical time as a senior Sri Lankan delegation is in Washington negotiating for relief.

According to analysts, for an export-dependent economy such as Sri Lanka, particularly in apparel and rubber-based products, this ruling offers a crucial pause and a potential shift in the dynamics of ongoing tariff negotiations.

The temporary reprieve could help exporters maintain existing order books and avoid costly price renegotiations already underway. It may also prompt a more flexible stance from the US at the negotiation table.