-By LeN Economic Correspondent
(Lanka-e-News -26.July.2025, 9.45 PM) Sri Lankan President Anura Kumara Dissanayake held an unscheduled virtual meeting with senior officials from the United States on Thursday evening, amid growing concern over a proposed 30% tariff on key Sri Lankan exports to the U.S. market.
The online discussion, conducted via Zoom and coordinated with the Office of the United States Trade Representative (USTR), focused on the potential economic fallout of the proposed levy, which threatens to undercut Sri Lanka’s export competitiveness at a time of fragile post-crisis recovery.
According to a statement issued by the President’s Media Division, President Dissanayake engaged directly with Jamieson Greer, Chair of the USTR, during the session, which also included the participation of Dr Harshana Suriyaaratchi, Secretary to Sri Lanka’s Ministry of Finance, and several senior trade officials from the U.S. delegation.
The talks, described by the Sri Lankan side as “urgent and constructive,” centred on a request by Colombo to reconsider or reduce the tariff proposal, which industry leaders warn could severely impact Sri Lanka’s access to the U.S. market—particularly in sectors such as apparel, rubber-based products, and processed agricultural goods.
“This administration is committed to maintaining transparent and mutually beneficial trade relations,” the President is reported to have said during the meeting, citing Sri Lanka’s adherence to labour standards, environmental benchmarks, and trade compliance frameworks.
While the USTR has not yet commented publicly on the outcome of the dialogue, sources familiar with the discussion say Washington agreed to review the concerns raised by the Sri Lankan delegation and acknowledged the strategic nature of bilateral economic ties in the Indo-Pacific context.
The proposed tariff hike, part of a broader review of U.S. trade preferences for selected developing countries, has sparked alarm among Sri Lankan exporters, many of whom are still recovering from pandemic-era disruptions and recent macroeconomic instability.
President Dissanayake’s intervention comes amid efforts to stabilise the country’s foreign earnings and debt repayment obligations, as Sri Lanka continues its negotiations with the International Monetary Fund (IMF) and external creditors following its 2022 sovereign default.
Trade experts say the timing of the U.S. tariff proposal could prove critical for Sri Lanka, which has been banking on export-led growth and foreign direct investment as part of its broader economic reform programme. A resolution on the tariff issue, or at minimum, a phased implementation, could offer breathing space for local industries reeling under currency depreciation and elevated input costs.
The Finance Ministry is expected to submit a formal report on the discussion to the Cabinet next week. Further bilateral engagements are anticipated ahead of a scheduled trade policy review in Washington later this quarter
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by (2025-07-26 16:26:36)
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