The Chairman of the BOI, Arjuna Herath, invited the top 50 exporters of the BOI in last week to an open dialogue to seek alternative strategies to mitigate the adverse impact stemming from the new US tariff imposed on Sri Lanka.
Senior Advisor to the President, Duminda Hulangamuwa also participated and outlined the Government initiatives taken so far to achieve positive outcomes and stage the negotiations.
“Diplomatic-level discussions have already taken place, and our diplomatic officers in Washington, DC, have already established communication with the respective trade delegates at the White House’s trade department,” he said.
Almost 70 countries have already reached out to the US to seek individual consultations from the US Government on specific tariffs to reach a further consensus.
There is a diverse range of Sri Lankan businesses that export to the United States, and around 200 of these are BOI enterprises. In 2024, the U.S. goods trade deficit with Sri Lanka was approximately $2.6 billion, with U.S. imports from Sri Lanka totaling $3.0 billion and exports to Sri Lanka at $368.2 million.
The representatives from the apparel, rubber, food industry, and ornament industry also participated in the discussion.
“We extensively discussed the differential tariffs of competitive countries in Sri Lanka and their impact on each sector.
The recent 90-day pause on reciprocal tariffs has had a positive impact and resumed most of the customers’ orders, yet industries are looking beyond the 90 days and alternatives to secure their business.
During the discussion, it was highlighted that most countries are seeking alternative trade agreements and new market opportunities to mitigate the US’s impact on specific economies and seek further trade relationships. These developments encourage Sri Lankan industries to explore partnerships with emerging markets and diversify their supply chains. By fostering collaborations with countries outside the traditional trading powers, they can enhance their resilience and adaptability in an ever-changing global landscape.
The 44 percent reciprocal tariffs by US on Sri Lanka is said to be a major blow to all exporting sectors of which apparel accounts for the largest share in the basket.
