- US, a vital trade partner
- Strategic approach to be formulated
- EU to assess GSP+
The Government has set up an Action Task Force (ATF) to tackle the global challenges arising from new tariff policies introduced recently by United States (US) President Donald Trump, Foreign Minister Vijitha Herath told Parliament yesterday.
Minister Herath said that Sri Lanka exports goods valued at approximately US$ 3 billion annually to the United States, while imports from the US total US$ 370 million. Given the significance of the American market to Sri Lanka’s exports, the Government considers it vital to assess the potential impact of President Trump’s trade policies, the Minister said.
The Lakshman Kadirgamar Institute of International Relations and Strategic Studies (LKI), an institution affiliated with the Ministry of Foreign Affairs, has brought together academics, professionals, and industry leaders to formulate a strategic approach to addressing the new US tariffs, he added. Experts have said that although the US had not applied direct tariffs on products from Sri Lanka, the country could still face the repercussions of the heavy tariffs imposed on other countries due to the highly interconnected nature of global trade and supply chains.
Minister Herath said that Indian Prime Minister Narendra Modi is scheduled to visit Sri Lanka during the first week next month, during which several new bilateral agreements will be signed. This will be his fourth State visit to Sri Lanka.
He said that during Prime Minister Modi’s visit, several new Memoranda of Understanding (MoUs) will be signed, in addition to the opening of the Sampur solar power station. In 2023, the State power entity, the Ceylon Electricity Board (CEB) and India’s NTPC agreed to build a 135 MW solar power plant in Sampur, Eastern Trincomalee.
“We have maintained a close relationship with our neighbour India. Our first diplomatic visit was to India, where we reached several agreements on bilateral cooperation,” Minister Herath said.
Minister Herath said that relations with the People’s Republic of China (PRC) have significantly improved under the current Government. China provided school uniform materials in 2025 and will do so again in 2026. Moreover, 1,186 new housing units are currently being constructed in Peliyagoda, Moratuwa, and Kottawa with a Chinese grant, he said.
“Sinopec has agreed to invest US$ 3.7 billion in Hambantota for an oil refinery. We are currently resolving some issues related to the project,” he said.
A delegation from the European Union (EU) will visit Sri Lanka next month to discuss the continuation of the GSP+ concessions, for which the Government has already undertaken the preparations. This is given only if the EU is satisfied about the human rights situation and several other factors of a given developing country.
Minister Herath also said the Government has identified Africa as an emerging and significant market, and the groundwork is being laid to facilitate more exports to African countries.
“We will remain neutral in our foreign policy without taking any sides while working to maintain national interest,” Minister Herath told Parliament.
