The seafood export sector, a pivotal cog in the export industry of Sri Lanka suffers the same fate as the rest of the exporters who have been slapped with an unprecedented tariff by the US.
Seafood merchants too will need to wriggle through the crisis by adopting new strategies to be in the game.
While one school of thought says it is vital to adopt a multifaceted strategy to steer through the storms the other says it important to assess whether continuing to rely on the USA market is viable.
However, as uncertainty looms over global trade which has been forced to hold its brakes until the path is cleared, traders will need to go back to the drawing board and review the whole issue before getting back to business.
Founder and Chairperson at Gospel Holdings (Pvt) Limited, Indiwary Fernando said Sri Lanka’s seafood export sector faces significant challenges under the current tariff regime imposed by the USA, which could strain profitability and market access. To navigate these adverse conditions, it is essential for exporters to adopt a multifaceted strategy.
“Firstly, it is crucial to assess whether continued focus on the USA market is viable. While the USA remains a lucrative destination due to its high demand for seafood, the imposition of tariffs may prompt exporters to explore alternative markets, particularly within Asia and Europe, where tariffs are more favourable and growth potential exists,” she said, adding that diversifying product offerings and enhancing quality through sustainable practices can improve competitiveness.
“This includes adopting certifications and standards that appeal to health-conscious consumers and environmentally aware markets,” Fernando said while stressing that the industry should invest in adaptive supply chain strategies, building resilience through innovation, and fostering collaborations with stakeholders to mitigate the impact of external shocks and also engaging in proactive dialogue with the government to advocate for trade agreements can also help alleviate tariff pressures. “By strategically balancing focus between established and emerging markets, Sri Lanka can secure a more resilient export landscape amid evolving global trade dynamics,” Fernando said.
Meanwhile, the Seafood Exporters’ Association of Sri Lanka (SEASL) has called upon the President to negotiate with the US Government to reduce the staggering 44% reciprocal tariff.
In a letter to the President the SEASL has requested him to negotiate with the US to take the tariff back to zero or to a minimum so that industry can continue to grow the sector and reach the target of $ 650 million in exports and create over 15,000 skilled jobs by 2028.
According to SEASL Sri Lanka exports around $ 50 million worth of seafood annually to US and until April 2, 2025, the tax on Sri Lankan seafood exports to US was at zero duty. The main exported products are pasteurised crab meat, frozen shrimp and fresh and frozen tuna.
“Although it’s only about 20% of the current seafood exports from Sri Lanka, US market was single market that our sector was hoping to increase in the next few years with the export of shrimps and crabs to achieve our target of $ 650 million seafood exports by 2028. However, with the announcement of 44% reciprocal tax on Sri Lanka recently, all our buyers have called and told us to hold off all shipments unless we are able to absorb this tax increase,” the SEASL stated in its letter to the President.
