The Colombo Rubber Traders Association (CRTA) has expressed serious concern over the United States’ recent imposition of a 44% blanket tariff on all imports from Sri Lanka, warning it could have a devastating impact on the country’s natural rubber industry.
With the existing 12.5% tariff, the new total tariff rate rises to 56.5%, rendering Sri Lankan rubber exports highly uncompetitive in the U.S. market.
The CRTA warned that this sharp increase threatens the livelihoods of over 150,000 rubber tappers and harvesters, most of whom live in rural communities with limited alternative employment opportunities.
The rubber industry is a key contributor to Sri Lanka’s economy, providing employment and earning significant foreign exchange. In 2023–2024, rubber exports to the U.S. were valued at $1.2 million.
The tariff hike is expected to worsen the decline in exports seen since 2022, when Sri Lanka earned $1.9 million from rubber exports to the U.S.
A reduction in demand from the U.S. market could trigger widespread job losses and economic hardship in rural areas dependent on the rubber trade.
CRTA Chairman Harin de Silva emphasized the urgent need for collaborative efforts between the government and private sector to protect the rubber industry and the communities it supports.
The CRTA has proposed several key actions: immediate diplomatic talks with the U.S., diversification of export markets, financial support for affected farmers and businesses, and long-term strategic planning for sector sustainability.
The association stressed that immediate government intervention is essential to prevent an economic crisis and ensure the resilience of Sri Lanka’s rubber industry.
