Sri Lanka has announced that it successfully negotiated a reduction in the U.S.-imposed import tariff from 44% to 30%, a move the government says positions the country more competitively in global trade.
Central Bank Governor Dr. Nandalal Weerasinghe said the revised tariff rate puts Sri Lanka on better footing compared to several regional competitors. “Previously, we were at a disadvantage facing a 44% rate while other countries had lower tariffs. Now, at 30%, we are more aligned with nations like Algeria, Iraq, and Libya, and better positioned than others still facing rates above 30%,” he noted.
Dr. Weerasinghe added that countries such as Laos, Cambodia, Bangladesh, and Indonesia continue to face higher U.S. tariffs, ranging from 31% to 40%, giving Sri Lankan exports a relative advantage in those markets.
The tariff reduction follows weeks of diplomatic engagement after U.S. President Donald Trump announced the imposition of steep reciprocal tariffs on April 2, citing trade imbalances and national economic interests. Sri Lanka was among the nations initially hit with a 44% tariff.
In a revised formal letter to President Anura Kumara Dissanayake, Trump confirmed the 14% reduction and offered conditional flexibility, stating the U.S. may adjust tariff levels further depending on bilateral relations and Sri Lanka’s trade policies.
President Trump warned, however, that any retaliatory tariff hike by Sri Lanka could prompt the U.S. to reimpose higher duties.
Finance Ministry Secretary Dr. Harsha Suriyapperuma emphasized that Sri Lanka’s reduction was among the most substantial achieved during this trade round. “The President himself led stakeholder consultations and guided negotiations to secure this outcome,” he said.
He added that Sri Lanka now has until August 1 to pursue further concessions, a window the government intends to use strategically. “Our focus is on keeping Sri Lanka competitive and minimizing the broader economic impact of these tariff adjustments,” Suriyapperuma said.
