Sri Lanka, August 1: The United States has announced a 20% tariff on Sri Lankan exports, a significant development in bilateral trade relations that will take effect on August 7. The move represents a reduction from an earlier proposed rate of 24%, softening the impact on Sri Lanka’s export economy while still signaling a shift in US trade policy.
Harshana Suriyapperuma, Sri Lanka’s lead government negotiator, responded on Thursday saying the tariffs “place Sri Lanka on level ground” with other competitors in the global market. While the tariff may squeeze some export sectors in the short term, government officials argue it could also normalize Sri Lanka’s position in international trade by aligning its terms with those faced by regional peers.
The specific product categories affected by the tariff have not yet been disclosed, but observers expect textiles, apparel, rubber goods, and agricultural products—major components of Sri Lanka’s export basket—to be impacted.
Trade analysts note that this decision comes amid broader US efforts to revise global tariff frameworks and secure more balanced trade terms with South and Southeast Asian economies. For Sri Lanka, which is trying to stabilize its economy after a prolonged crisis, the implications could be mixed—raising costs for exporters but potentially pushing policy reforms and diversification.
Further negotiations between Colombo and Washington are expected in the coming months, particularly as Sri Lanka seeks to safeguard key export sectors and maintain its US market share.