US Lowers Tariffs on Sri Lankan Exports to 30% – Govt Continues Trade Talks

Colombo(News 1st); The United States has reduced the proposed reciprocal tariff on Sri Lankan exports from 44% to 30%, according to a letter sent by President Donald Trump to President Anura Kumara Dissanayake earlier this week. 

The tariffs are scheduled to take effect from August 1.

Deputy Minister of Economic Development Dr. Anil Jayantha Fernando, addressing Parliament today, said Sri Lanka received the highest general concession among 25 countries that received similar communications. 

He noted that while some countries such as Brazil saw their tariffs rise significantly — from 10% to 50% — Sri Lanka managed to secure a reduction through diplomatic negotiations.

Dr. Fernando explained, QUOTE“This is not a dispute between Sri Lanka and the U.S. This is a global trade policy being implemented by the United States. We were able to bring the tariff down through effective diplomatic engagement. The initial 44% tariff was based on trade ratios, not political favor.” UNQUOTE

He added that discussions are ongoing with U.S. officials to finalize a trade agreement that could further reduce tariffs beyond the current 30%.

However, Opposition Leader Sajith Premadasa expressed concern, stating that while the reduction from 44% to 30% is a welcome step, Sri Lanka still faces a disadvantage compared to regional competitors. 

Responding to criticism, Dr. Fernando said the opposition's stance appeared inconsistent — both appreciating and criticizing the outcome. He emphasized that India has not yet received a formal courtesy letter from the U.S., and the figures mentioned were based on preliminary trade ratio calculations.

Leader of the House Minister Bimal Ratnayake also addressed Parliament, referring to a media alert on new UK trade measures that could benefit Sri Lankan apparel exports. 

Dr. Fernando reiterated that the U.S. applied a standard global formula to calculate the new tariff regime based on trade gaps, and Sri Lanka continues efforts to secure better terms through diplomatic channels before the August 1 implementation.