An arrangement relating to bilateral trade with the United States will be reached shortly following a series of successful talks in Washington, said a senior minister on Friday.
“We hope to reach an agreement on matters related to trade relations with the US which is impressed with the interest shown by Sri Lanka to make a deal,” Deputy Minister of Economic Affairs, Prof. Anil Jayantha Fernando said.
A delegation lead by Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma held discussion in Washington last week covering tariffs and investments.
The Government is expected to issue a statement on the talks in the near future according to government sources.
The United Sates announced a flurry of tariffs on all its trading partners a fortnight ago while slapping a 44% tariff on all exports from Sri Lanka to the US in addition to the 10% universal tariff. President Anura Kumara Dissanayake told a public rally in Ratnapura on Thursday, that a joint statement on the resolution of the reciprocal tariff will be made by Sri Lanka and the US shortly. He too said talks on resolving the reciprocal tariff with Washington were successful.
The President said that the Deputy Finance Minister had informed him that the discussions with the US were fruitful.
The US tariff is expected to have a crippling effect on Sri Lanka’s apparels which is the largest export item accounting for around 27% of the total exports to the US.
These tariffs were introduced as a countermeasure to what the US perceived as unfair trade practices, including high tariffs and non-tariff barriers on US goods.
Meanwhile the International Monetary Fund stated that the sharp increase in tariffs and uncertainty will lead to a “significant slowdown” in global growth this year.
The forecast for US economic growth for this year has been given the biggest downgrade among advanced economies by the International Monetary Fund (IMF) due to uncertainty caused by trade tariffs.
Growth is now expected to be 1.8% this year, down from the IMF’s estimate of 2.7% for the US in January.
The Fund’s Managing Director Kristalina Georgieva issued a strong appeal to major economies to address the imbalances that are fueling global tensions and to safeguard economic and financial stability.
Trade between Sri Lanka and the US was estimated at around $3.4 billion last year.
The Secretary of the Ministry of Trade, and the Sri Lankan Ambassador to the United States were also part of the Sri Lankan delegation while the US side was represented by the head of the US Trade Representative’s office and other officials.
