Sri Lanka must not rush to dismantle tariffs until forex stability secured – CUBA

Notes some industries overprotected for political reasons while others left to collapse Urges Govt. to introduce WTO-compliant non-tariff barriers, quality standards, licencing and safeguard clauses

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CEYLON United Business Alliance (CUBA) Industry Sub-Committee Chairman and former KPMG Ford, Rhodes, Thornton & Co., Statutory Auditor M.R. Jeffrey has warned that Sri Lanka should not dismantle tariffs or para-tariffs under the Economic Stabilisation Act, No. 45 of 2024 until the nation's foreign exchange reserves reach a sustainable and safe threshold.

Jeffrey noted that while the Act aims to modernise tariff structures and create a transparent system, it was not binding unless regional countries adopt the same framework. “Sri Lanka must avoid unilateral liberalisation when neighbouring economies maintain strong protective environments,” he argued.

"We are still operating under severe forex pressures. Removing protective duties without adequate reserves will invite a surge of cheap imports, weaken the rupee, and undermine the very industries we are trying to revive," Jeffrey said.