The US Government has asked Sri Lanka to propose ways to reduce its trade deficit between the two nations following the announcement of 44% reciprocal tariffs, Deputy Minister of Economic Development Anil Jayantha Fernando.
Briefing the media on the impact on Sri Lanka, Deputy Minister Anil Jayantha said the tariffs, which come into effect on 09 April, would effectively reduce the competitiveness of Sri Lanka’s products.
“The US has asked us to propose ways to reduce our trade deficit with them. We are currently exploring the best strategies to address this issue, including the possibility of revising the existing tariff structure. We have appointed a committee and are conducting discussions on a daily basis. Proposals are being submitted and we will keep everyone informed of the development in due course,” he said.
Deputy Minister Anil Jayantha further said that Sri Lanka is not among the US Government’s group of ‘Dirty 15’ countries, which are nations with substantial trade deficits that are expected to face higher tariffs.
Also addressing the media, Deputy Minister of Finance and Planning, Harshana Suriyapperuma, said prior to the announcement of the US tariff, a discussion was held with a visiting US delegation on the impending tariff announcement.
“Discussions were held with a US delegation overlooking the region, on the impending situation, to understand what type of an approach Sri Lanka could take. The fact that even though we have a trade deficit from the perspective of the US, the value of that trade deficit is not that significant compared to some of the other countries. An approach was identified to be addressed after the announcement of the actual numbers,” he said.
Deputy Minister Harshana Suriyapperuma further said that, subsequent to the announcement on tariffs, swift arrangements were made for industry engagements, and as a result, a committee was appointed to discuss further and have a strategy to deal with the way forward.
“A decision was made that Sri Lanka will reach out to a very high-level office representation from the US Administration to discuss the current situation. A virtual discussion was held for nearly an hour. Matters were explained at length, specifically highlighting that we are within the current IMF programme. So revenue consultation measures are taking place. What are the approaches that we need to take? They clarified, based on the information that they have access to at that point in time,” he said.
Deputy Minister Harshana Suriyapperuma revealed during the discussion, the US delegation clarified that Sri Lanka will be imposed only a 44% tax and not the additional 10% tax.
“They mentioned it is an evolving situation. We will have to wait and see the final decisions on the 09th of April. Depending on how it unfolds, we have to look at the approaches that the other countries are taking, also. So the next meeting is to be scheduled soon, which will discuss more specific outcomes,” he said.
Deputy Minister Harshana Suriyapperuma said Sri Lanka has suggested a date for the discussion and is awaiting confirmation from the US side.
The clarification comes after the Donald Trump-led US Government recently imposed reciprocal tariffs on several countries, including Sri Lanka.
A 44% tariff was imposed on Sri Lankan goods by the United States under President Donald Trump’s revised trade policy.
The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, places Sri Lanka among the countries facing the highest tariff rates globally.
The United States has long been Sri Lanka’s most important export destination, accounting for 23% of total merchandise exports in 2024. Of nearly 3 billion in exports to the U.S. last year, the vast majority—over 70%—came from the apparel sector. (Newswire)
