SL welcomes US tariff cut

Treasury Secretary Dr. Harshana Suriyapperuma confirms no concessions made in exchange for reduction

- BY CHARUMINI DE SILVA

SRI Lanka yesterday laid out its strategy for navigating the latest trade headwind following the hike in US tariff on exports set to rise to 30% starting 1 August, in a high-level press briefing attended by top Government and economic officials, where they framed it as a manageable outcome and a temporary stage in a broader negotiation process that remains fluid and ongoing.

Treasury Secretary Dr. Harshana Suriyapperuma confirmed that Sri Lanka was among a handful of countries to have received the largest tariff reduction under the US's new reciprocal trade strategy, with the initially proposed 44% duty scaled down to 30%.

"Our objective is to use this window between now and 1 August to negotiate a more favourable and mutually beneficial outcome," he added.

Dr. Suriyapperuma attributed this outcome to intensive behind-the-scenes diplomacy and sustained engagement with the US Trade Representative's Office (USTR) and other US officials.

"We are consulting closely with all our industries and trade partners to ensure Sri Lanka puts forward a viable position that safeguards our long-term interests," he said.

He affirmed the new rate, effective 1 August, will replace the existing 10% tariff that remains in place during the negotiation window.

Central Bank Governor Dr. Nandalal Weerasinghe welcomed the development but cautioned that further progress is essential.

We recognise the significant headway made so far, but we need to make more progress," he said, noting that the macroeconomic impact of the new tariffs remains uncertain and will depend on evolving global conditions.

As the Government is yet to complete a full economic impact assessment, Dr. Weerasinghe noted that it was too early to quantify exact job losses or factory closures. "The effects are not unique to Sri Lanka. Exporters worldwide are feeling the heat," he added.