US tariffs: Implications and opportunities for Sri Lanka

THE Sri Lanka-USA Business Council of the Ceylon Chamber of Commerce focusing on strengthening bilateral trade, investment, and business ties between Sri Lanka and the United States, recently hosted a timely webinar on the evolving US tariff regime and its implications for Sri Lankan exporters.

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The session brought together trade experts and industry leaders to examine how Sri Lanka can navigate risks, leverage shortterm opportunities, and prepare for long-term competitiveness. Delivering the welcome note, the Sri Lanka-USA Business Council President and also the Group Chief Financial Officer of MAC Holdings, Tilak Gunawardena, stressed the importance of understanding the shifting US trade environment. "As global trade regulations continue to evolve, understanding US tariff policy is vital for Sri Lankan businesses seeking to grow and sustain their presence in the US market," he said. He reaffirmed the Council's commitment to supporting the wider business community with timely, relevant, and actionable insights. Setting the stage, Advocata Chief Executive Officer Dhananath Fernando explained that the dis cussion would focus on how US tariffs are reshaping global trade, the risks Sri Lanka faces, and the opportunities that may arise from this changing environment. The discussion opened with Deloitte India Executive Director Vijay Chauhan, with over 30 years of experience on public policy, trade facilitation, customs and indirect tax administration. He provided a breakdown of how the US is applying tariffs through domestic laws such as the International Emergency Economic Powers Act (IEEPA), Section 232 (national-security tariffs on steel, autos, etc.), and Section 301 (actions mainly targeting China). Vijay noted that while these tariffs are being challenged in the US courts, they currently remain in force, however he advised exporters to maintain meticulous documentation and remain in close contact with US counterparts in case refund oppor tunities arise in future.

Lanka's tariff rate has fallen to 20%