Acting Minister of Finance Dr. Anil Jayantha announced that Sri Lanka expects a formal response from the United States by August 1 regarding ongoing negotiations to reduce tariff rates.
Speaking to the media after a public event in Gampaha, Dr. Jayantha emphasized that the government has already submitted its proposals and is awaiting feedback. “We previously reduced the tariff rate from 44% to 30% through consistent dialogue. Talks are still ongoing, and we expect a response by the 1st,” he said.
When asked about oil imports from the U.S., the Minister clarified that Sri Lanka will only consider purchases at competitive market prices. “We won’t pay more than what’s available in other markets. That’s not practical,” he added, highlighting that discussions aim to balance the trade deficit through strategic imports.
Dr. Jayantha also addressed the government’s focus on reducing VAT, noting that with a broadened tax base, current planned taxes are being effectively collected, eliminating the need for introducing new tax categories.
“We are exploring whether VAT can be further reduced. As a responsible government, we aim to stabilize revenue while delivering benefits to the public,” he said.
