Sri Lanka ready to engage with US in strengthening trade relations - Finance Ministry

The Government of Sri Lanka says it stands ready to engage with the US administration at the earliest opportunity to explore ways to manage the trade balance in a fair manner and that it is committed to substantially reducing tariff and non-tariff barriers that hinder trade and investment.

On Wednesday, US President Donald Trump announced a sweeping set of reciprocal tariffs, imposing a baseline 10 per cent tax on all imports and significantly higher rates on dozens of countries with which the US runs trade deficits. 

Sri Lanka is facing one of the steepest tariffs among countries amounting 44 per cent. 

The Government of Sri Lanka said it recognizes the evolving trade landscape with the United States looking to address trade imbalances through reciprocal tariffs. 

“This tariff is set at 44% which is significant as Sri Lanka exports USD 3 billion to the US,” Sri Lanka’s Finance Ministry said, issuing a statement to clarify the government’s stance on the tariffs. 

The Government reaffirmed its strong commitment to deepening economic ties with the US, a longstanding friend and trusted trading partner. 

Sri Lanka is engaged in an IMF Extended Fund Facility since March 2023 as part of its recovery from the unprecedented economic crisis and successfully completed the Third review of the programme. 

In this context, Sri Lanka said it appreciates the steadfast support extended by the US in supporting Sri Lanka’s economic recovery, in particular the support in the external debt restructuring efforts. 

“We have now stabilized our economy and on a steady growth path of 5% in 2024. Considering our export exposure and potential slowdown in global demand, we are concerned that our recovery path could be constrained,” the statement said. 

“The Government stands ready to engage with the US administration at the earliest opportunity to explore ways to manage the trade balance in a fair manner.”

“We are committed to substantially reduce tariff and non-tariff barriers that hinder trade and investment,” the Finance Ministry said. 

“Improving the ease of doing business remains a top priority of the Government, as we strive to create an environment that encourages innovation, fosters commercial partnerships, and unlocks opportunities for both nations. In conclusion, by working together, our countries have the opportunity to usher in a new era of growth, and shared prosperity for both our nations.”