Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando says Sri Lanka remains confident that ongoing discussions with the United States will resolve concerns related to reciprocal tariffs and proposed supply-chain regulations.
He made these remarks while addressing recent reports on U.S. proposals to introduce new tariff measures affecting Sri Lanka and 59 other countries.
On June 3, it was reported that the U.S. administration has proposed additional duties of 10% to 12.5% on imports from around 60 economies, including Sri Lanka, following assessments related to forced labour concerns in global supply chains. Sri Lanka may be among 45 countries that are liable for a 12.5% tariff, according to media reports.
The Deputy Minister noted that the United States had previously introduced reciprocal tariff adjustments aimed at addressing its trade imbalance, which also affected Sri Lanka.
He said the situation is still evolving, with discussions underway on the possibility of a uniform 10% tariff framework under ongoing U.S. trade policy revisions.
He emphasized that Sri Lanka has consistently engaged with U.S. authorities through diplomatic channels since the issue emerged and expects a final agreement on reciprocal tariff arrangements in the near future.
Addressing reports circulating in public discourse, he dismissed claims that an additional 12.5% tariff has already been imposed on Sri Lanka as “false and misleading.”
He explained that the reported measures are linked to broader U.S. investigations into global supply chains, particularly concerning allegations of forced labour practices in certain production networks.
The Deputy Minister stated that the U.S. has launched supply-chain investigations covering around 60 countries, including Sri Lanka and several Asian and developed economies. He said preliminary investigations have led to proposed measures in some cases, which are subject to further investigations.
He stressed that Sri Lanka fully supports global standards against forced labour and has already established legal safeguards to ensure compliance within its supply chains.
He added that a special committee, chaired by the Secretary to the Ministry of Trade and operating with Cabinet approval, is currently coordinating Sri Lanka’s response and engagement with U.S. authorities.
He further stated that ongoing discussions aim to ensure that no products linked to forced labour enter Sri Lanka’s export supply chains, and that relevant information is being shared with U.S. investigative bodies to resolve concerns.
Highlighting the global nature of modern trade networks, he noted that countries such as India, Bangladesh, Indonesia, Malaysia, Pakistan, the Philippines, Thailand, Australia, China, Canada, the European Union, Israel, Japan, and the United Kingdom are also included in the review due to interconnected supply chains.
He reiterated that no additional tariff has been imposed on Sri Lanka at this stage and described claims regarding a specific 12.5% tariff as inaccurate.
Concluding his remarks, he said Sri Lanka is confident the matter can be resolved through continued negotiations and urged the public not to be misled by inaccurate reports.
