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Sri Lanka faces 50,000 job loss risk amid looming US tariffs: FTZMA
Daily FT
|July 08, 2025
SRI Lanka's economy could face a significant blow, with the Free Trade Zone Manufacturers' Association (FTZMA) yesterday cautioning that the proposed tariffs by US President Donald Trump may trigger the loss of up to 50,000 jobs in the initial phase and undermine the country's competitiveness across South and Southeast Asia.
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Addressing the media, FTZMA Chairman Dhammika Fernando expressed deep concern over the situation, noting that nearly 20% of Sri Lanka's trade earnings, driven largely by exports, could be in jeopardy.
"At the outset, data suggests that around 50,000 jobs could be lost," he warned.
With the US being Sri Lanka's largest single export market, and the apparel sector shipping around 20-25% of apparel and textiles, Fernando said the proposed tariffs—part of Trump's broader “reciprocal” trade strategy—could severely erode the competitiveness of Sri Lankan goods.
This story is from the July 08, 2025 edition of Daily FT.
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