Opposition Leader Sajith Premadasa warned on Sunday that Sri Lanka’s garment industry could face widespread job losses and economic fallout if a proposed U.S. retaliatory tax on imports from Sri Lanka takes effect.
Speaking at a public gathering in Naththandiya, Premadasa said the 44% tax, expected to be implemented on April 9, would severely impact the industry, which sends nearly 40% of its garment exports to the United States. He said the new levy follows Sri Lanka’s imposition of an 88% tax on U.S. goods.
“This move will erase our price competitiveness and threaten thousands of jobs,” Premadasa said, noting that many workers returning home for the Sinhala and Tamil New Year holidays may face uncertainty upon their return.
He said he had raised concerns in Parliament after former U.S. President Donald Trump announced plans to increase tariffs on imports following a strong electoral showing. Premadasa criticized the government for failing to act on those warnings, saying its inaction contributed to the current situation.
Premadasa also raised concerns about the broader economic implications, including Sri Lanka’s ability to repay a loan due in 2028, originally scheduled for 2033. A decline in export revenue could hamper repayment efforts, he said.
He called for a more proactive government response, including the dispatch of a skilled diplomatic team to engage with U.S. officials and collaboration with other nations to form a joint response.
Premadasa also referenced discussions with Indian Prime Minister Narendra Modi, during which he requested increased market access for Sri Lankan garments. He said Sri Lanka currently exports about 8 million garment pieces to India and called for expanded trade opportunities to help cushion the impact of the U.S. tariffs. (NewsWire)
