-By LeN Economics Correspondent
(Lanka-e-News -02.Aug.2025, 10.10 PM) Sri Lanka has secured a key breakthrough in its international trade negotiations, with the United States agreeing to reduce its previously imposed tariff to 20%, a move Treasury Secretary Dr Harshana Suriyapperuma has described as “a victory for the country.”
Addressing a press briefing held on Thursday (1st August), Dr Suriyapperuma stated that the primary objective of recent high-level discussions with U.S. counterparts was to safeguard the competitiveness of Sri Lankan exporters and businesses within the broader regional market. The reduction, he emphasised, would provide much-needed breathing room for Sri Lanka’s export sector, which continues to grapple with global headwinds and a fragile domestic recovery.
“The decision to lower the tariff rate represents a significant achievement for us as a country,” Dr Suriyapperuma said, noting that it was a culmination of months of technical-level dialogue and strategic diplomacy. “It ensures that our exporters are not priced out of regional trade circuits and allows Sri Lankan goods to remain viable in international markets.”
Beyond tariffs, the discussions also touched on constraints arising from Sri Lanka’s ongoing agreement with the International Monetary Fund (IMF). Dr Suriyapperuma indicated that these limitations—particularly those tied to fiscal reform and governance—were not overlooked.
He noted that Sri Lanka’s delegation had highlighted its commitment to reducing corruption and improving governance standards as a means of attracting U.S. investment. “We conveyed clearly that, through good governance and tackling corruption, we aim to reduce the cost of doing business for American investors in Sri Lanka,” he said.
Further, the delegation is understood to have proposed the expansion of digital infrastructure to streamline commercial transactions and improve ease of doing business—measures aimed at creating a more investor-friendly climate and enhancing overall economic transparency.
The Treasury Secretary extended gratitude to President Anura Kumara Dissanayake for his direct involvement in facilitating the talks. He also acknowledged the contribution of Central Bank Governor Dr Nandalal Weerasinghe, Presidential Economic Advisor Duminda Hulangamuwa, Trade Ministry Secretary Vimalendra, and Sri Lanka’s Ambassador to the United States, Mahinda Samarasinghe.
“This was a team effort involving multiple institutions across government, and we are grateful for the collective diplomatic push,” Dr Suriyapperuma added.
Encouraged by the outcome, the government now hopes to pursue further tariff reductions. Dr Suriyapperuma confirmed that negotiations with the U.S. would continue in the coming months, with particular attention to legal mechanisms and procedural frameworks necessary for broader trade liberalisation.
“Our attention is now focused on the modalities for the next phase of tariff talks,” he said. “This is only the beginning.”
For a country seeking both economic stability and industrial growth, the reduction in U.S.-imposed tariffs offers a rare bright spot. Whether this momentum can be sustained—and expanded—remains to be seen. But for now, the Treasury views it as a timely and significant win.
-By LeN Economics Correspondent
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by (2025-08-02 16:35:42)
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