The Sri Lanka Export Development Board (EDB) recently organized a stakeholder consultation to discuss strategies for mitigating the potential adverse impact of the newly imposed 44% reciprocal tariff by the United States on Sri Lankan exports.
The meeting, chaired by Mr. Mangala Wijesinghe, Chairman and Chief Executive Officer (CEO) of the EDB, brought together representatives from leading Trade Associations and Chambers to assess the implications of the tariff hike and explore possible response measures.
During the discussion, the Chairman outlined the steps already taken by the Government of Sri Lanka, including diplomatic engagements with US authorities, submission of formal appeals, and plans to dispatch a diplomatic delegation for further negotiations.
Representatives from various export sectors expressed serious concerns over the negative impact of the proposed tariffs, particularly on key export industries such as apparel, rubber, coconut products, spices, gems and jewellery, tea, and ornamental fish. The apparel sector, being the largest exporter to the US, was identified as the most vulnerable, while exporters from other sectors highlighted challenges such as suspended or delayed orders from US buyers.
Participants proposed several potential responses to mitigate the situation, including strengthening government-to-government negotiations, leveraging Sri Lanka’s engagement with the IMF to provide short-term relief for exporters, and cautiously exploring reciprocal trade concessions. The need to diversify export markets beyond the US particularly in South East Asia, the Middle East, and Africa was strongly emphasized. Suggestions were also made to offer short-term support measures such as reducing freight costs and measures to reduce the cost of production, while engaging directly with US stakeholders to highlight the adverse impact of the tariffs on American consumers and businesses. The suggestions presented by the exporters during this discussion are also expected to be submitted to the government in the future.
The consultation concluded with a strong commitment from all stakeholders to work collaboratively with the government to navigate the challenges and safeguard Sri Lanka’s export sector.
