Plastics and Rubber Institute of Sri Lanka welcomes US tariff reduction on Sri Lankan exports

Monday, 4 August 2025 04:51 - - {{hitsCtrl.values.hits}}

The Plastics and Rubber Institute of Sri Lanka (PRISL) has extended its appreciation for the recent decision by US President Donald Trump to reduce and finalise the tariff rate to 20% on Sri Lankan exports to the United States. This strategic policy move marks a pivotal milestone for Sri Lanka’s manufacturing and export sectors, particularly the rubber and plastics industries, which have long been key contributors to the national economy.

This significant tariff reduction comes at a critical juncture as Sri Lanka continues its recovery from a severe economic downturn, still navigating through an International Monetary Fund (IMF) bailout program. The lowered tariff rate offers a much-needed boost to the country’s export competitiveness, especially in light of the intense regional competition faced by Sri Lankan manufacturers in South and Southeast Asia.

“With this final tariff structure now in place, we are optimistic that demand for Sri Lankan rubber and plastic products in the US market will rebound to levels experienced before the reciprocal tariff measures were introduced,” said a spokesperson for PRISL. “This renewed market access is a vital step toward restoring investor confidence and sustaining export-led economic recovery.”

PRISL also acknowledges the relentless efforts of the Sri Lankan trade negotiation team, whose constructive engagement with the US Trade Representative’s Office played a central role in securing this favourable outcome. The leadership and intervention of President Anura Kumara Disanayake were also instrumental, underscoring the importance of high-level diplomacy in advancing national economic interests.

The United States continues to be one of Sri Lanka’s most important trading partners, and this revised tariff framework reaffirms the value of maintaining strong bilateral trade relations. The rubber and plastics sector—alongside other key export industries—has consistently highlighted the importance of ensuring fair and competitive access to the US market.

Looking ahead, PRISL emphasises the need for Sri Lankan manufacturers to capitalise on this opportunity by accelerating innovation, product diversification, and market expansion. In a challenging and rapidly evolving global trade environment, competitiveness will be increasingly defined by value addition, quality assurance, and the ability to meet emerging sustainability standards.

The Plastics and Rubber Institute of Sri Lanka remains committed to supporting the industry through capacity building, research, and advocacy, ensuring that local manufacturers are well-equipped to thrive in global markets.

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