World Bank warns US tariff threatens Sri Lankan garment exports and jobs
The World Bank, in its latest Sri Lanka Development Update report, has warned that the 20% tariff imposed by the United States on Sri Lankan exports could lead to a significant decline in the country’s garment exports and place the jobs of low-skilled labourers at risk.
The World Bank estimates that the 20% tariff could cause Sri Lanka's annual ready-made garment exports to the US to drop by approximately 12%.
While the report notes that the nature of Sri Lanka’s garment exports—such as undergarments and high-quality apparel—gives it a relative resilience compared to some competitors, the impact of the tariff is expected to be directly felt in both employment and export revenue.
The report also highlights the fact that the tariff rate imposed on Sri Lanka is now similar to those applied to key competitors such as Vietnam, Bangladesh, Cambodia, and Indonesia.
