EU Can Handle 30% Tax—But Can Sri Lanka? Harshana Raises Concerns

COLOMBO (News 1st);  Opposition MP Harshana  Rajakaruna of the Samagi Jana Balawegaya (SJB) has weighed in on the recent discussions surrounding the 30% tariff imposed by the US Government on Sri Lankan exports, suggesting that the issue is being exaggerated in comparison to global standards.

Rajakaruna responding to questions about the U.S.-influenced tax policies and their impact on Sri Lanka, emphasized that the real concern is not the reduction from 44% to 30%, but how Sri Lanka compares with other competitive economies.

“The issue isn’t that we’ve come down to 30% from 44%. That’s not the point. What matters is how we stack up against countries we compete with. Just saying ‘we’re at 30% now’ doesn’t help if our competitors are having lower rates,” he said.

When asked about the European Union’s similar tax rate, Rajakaruna dismissed the comparison, noting that the EU operates under vastly different economic conditions.

“It’s not just the EU—many countries around the world are dealing with this. But the EU has strong economic power and doesn’t rely on a single country. We’re not in that position,” he explained.

He further stated that while countries like Vietnam have lower tariffs, Sri Lanka should not politicize the issue but instead focus on reducing the rate further to remain competitive.

“We’re not trying to gain political mileage here. We’re simply saying: please consider reducing it further from 30%,” Rajakaruna concluded.