SL seeks more US tariff relief, trade talks still on hold
While the Ministry of Trade, Commerce, Food Security, and Cooperative Development continues to engage with the United States to seek further relief regarding the reciprocal tariffs imposed on Sri Lankan exports, no decision has been made yet on resuming the suspended bilateral trade talks initiated by the previous Government.
Speaking to The Sunday Morning Business, Ministry of Trade, Commerce, Food Security, and Cooperative Development Secretary K.A. Vimalenthirarajah stated that despite the decision by the US in August to reduce the reciprocal tariff rate on imports from Sri Lanka to 20%, the Government of Sri Lanka had continued to engage with its US counterparts in order to obtain further relief for Sri Lanka.
Responding to a query on the possible further relief expected by the Government, he stated: “Nothing has come through yet. We will have to wait and see.”
Vimalenthirarajah further stated that a US delegation had visited Sri Lanka earlier this month for face-to-face meetings to negotiate a possible trade deal between the two countries, adding that although both parties had agreed to hold another in-person meeting, a date had not yet been scheduled.
He further revealed that, notwithstanding this, both parties were continuing to engage with each other virtually.
Commenting further on Sri Lanka’s suspended bilateral trade talks initiated by the previous Government, he stated that the incumbent Government had not reached a policy decision on the matter yet.
On 2 April, US President Donald Trump announced a 44% reciprocal tariff on Sri Lanka based on a particular calculation where it was alleged that Sri Lanka had been imposing 88% tariffs on US exports. However, thereafter, the implementation of the reciprocal tariffs was delayed by 90 days.
Thereafter, in early July, the reciprocal tariff on Sri Lanka was reduced to 30%, which was subsequently reduced further to 20%.
