Sri Lanka Seeks Collaboration to Mitigate Tariffs

COLOMBO (News 1st); Dr. Anil Jayantha, Deputy Minister of Economic Development, addressed Parliament today regarding the new US tariffs and the comprehensive review undertaken by the Sri Lankan Embassy. 

The review analyzed Sri Lanka's current import profile from the United States and the global performance of US exports, revealing that most US goods are already subject to certain para tariffs.

The Embassy engaged with the US Trade Representative Office, where Brendan Lynch, Assistant US Trade Representative for South and Central Asia, and Emily Ashby, Director of South Asia, participated in discussions and responded promptly to the executive action.

Following this announcement, a report was submitted, and the President of Sri Lanka appointed a special committee comprising industry experts and government officials, including two deputy ministers, to examine the situation and propose possible actions, he said.

Several local meetings were conducted, and a virtual discussion with US Trade Representatives explored potential options and mitigation strategies to reduce the trade deficit. 

Despite the high tariff rates, the calculation is based on the trade deficit divided by corresponding imports, necessitating proposals focused on reducing this gap.

The Deputy Minister said that a report is being prepared, and another virtual discussion with the US Trade Representative Office is scheduled for tonight. 

The President of Sri Lanka directly wrote to US President Donald Trump, outlining possible mitigation measures and requesting collaboration to reduce the tariffs. The White House has acknowledged receipt of this letter, he noted.

Contrary to views expressed on social media, the government has taken appropriate action, said the Deputy Minister adding that this situation is not limited to Sri Lanka and the US but is a global issue. The standard formula applied leaves little room for proactive negotiation or concessions.