New US tariffs, GSP Plus, won’t affect Lanka’s export earnings in 2025 - FTZMA
The new US tariffs imposed on Sri Lanka are not expected to have a negative impact on exports in 2025, said Dhammika Fernando, Chairman of the Free Trade Zone Manufacturers Association (FTZMA).
He noted that last year, the FTZMA recorded around USD 2.9 billion in revenue from exports to the US — the country’s largest single market. “This figure also includes apparel exports,” he added.
“This year, we expect a slight increase in revenue,” Fernando said.
He further mentioned that most other countries are expected to experience similar positive trends this year, except Bangladesh, where protests have disrupted work orders.
However, Fernando cautioned that these positive figures may change next year, as buyers could shift to sourcing from countries not facing US tariffs.
“In addition, the purchasing power of US consumers has somewhat declined, leading many suppliers to reduce orders. This too could result in a dip for Asian and other exporters,” he explained.
Fernando also stated that any potential impact from the possible revocation of the GSP+ trade facility would only be felt after three years, as the decision is expected in 2027.
“We hope the government will take tangible measures to address this issue, given that exports to the EU amounted to around EUR 80 billion last year,” he added.
