FTZMA urges Govt. to act swiftly, strategically and wisely

Says members including key players in apparel, tea, rubber industries are bracing for ripple effects of reduced competitiveness in US market

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THE Free Trade Zone Manufacturers' Association (FTZMA) yesterday said Sri Lanka, being an unsuspecting player in this global trade confrontation, finds itself grappling with an unprecedented challenge that threatens to derail its export-driven industries following the US's reciprocal tariffs.

In a seismic move shaking Sri Lanka's economic foundations, US President Donald Trump on 2 April unleashed a reciprocal tariff targeting nations with trade imbalances.

The FTZMA, representing over 300 enterprises across Sri Lanka's Free Trade Zones, has raised the alarm about the devastating impact this tariff could have on the nation's economy. FTZMA members, including key players in the apparel, tea and rubber industries, are bracing for the ripple effects of reduced competitiveness in the US market, fears of mass layoffs and factory closures loom large over the thousands who rely on these sectors for their livelihoods.

FTZMA Chairman Dhammika Fernando stated that the Association has convened an emergency meeting to address the crisis, whilst noting that the Association is actively engaging with Government authorities to formulate strategies that will safeguard the interests of its members and mitigate the fallout.

The apparel industry – long celebrated as Sri Lanka’s golden goose of foreign revenue responsible for approximately 56% of total industrial exports to the US – has been thrust into the crosshairs.