Sri Lanka races to protect exports amid US tariff

FACED with the imposition of a sharp 44% reciprocal tariff by the US, Sri Lanka's single largest export destination, the Government is mounting a multi-pronged diplomatic and policy effort to avert a looming trade crisis.

- BY CHARUMINI DE SILVA

Sri Lanka Export Development Board (EDB) Chairman Mangala Wijesinghe described the development as a matter of 'urgent national interest,' affirming that the Government has moved quickly to secure a 90-day grace period during which the tariff has been temporarily reduced to 10%, offering short-term relief for the country's export sector.

"The Government views this as a critical moment for both immediate containment and long-term recalibration of Sri Lanka's trade strategy. The US accounts for around 25% of our total exports. Preserving market access is critical—not just for exporters, but for the broader economic stability of the country," he told the Daily FT.

Wijesinghe confirmed that a high-level delegation, appointed by President Anura Kumara Disanayake, is set to depart for Washington this week, building on a series of preliminary engagements with US officials. "We have already had virtual meetings and submitted formal appeals. Our goal now is to deepen those discussions and work towards a mutually acceptable long-term framework," he added.