EDB Chief on US tariff reduction: A powerful vote of confidence in Sri Lanka’s economic trajectory

• Reduction offers tangible competitive advantage for SL products in American market

 The Sri Lanka Export Development Board (EDB) welcomed the US Government’s decision to further reduce reciprocal tariffs on Sri Lankan exports to 20%, calling it a monumental achievement for the nation’s economic recovery and future prosperity. 

This decisive action, a reduction from the previously announced 30% and an initial proposed 44%, provides critical relief and a level playing field for Sri Lankan exporters in their most important 

market.

“This is not merely a tariff reduction; it is a powerful vote of confidence in Sri Lanka’s economic trajectory, our commitment to governance reforms, and the quality of our exports,” EDB Chairman and CEO Mangala Wijesinghe said. “On behalf of the entire export community, I extend our deepest gratitude for this remarkable achievement. This outcome is a testament to the power of sustained diplomacy, mutual respect, and strategic collaboration.” 

The Chairman noted that the revised tariff rate places Sri Lanka on a competitive footing with key regional peers such as Bangladesh and Vietnam, particularly in the apparel and rubber sectors, which are vital contributors to the country’s foreign exchange earnings. “This remarkable outcome is a testament to the power of sustained diplomacy and strategic collaboration. The Government’s consistent efforts, led by President Anura Kumara Disanayake, towards fiscal stability, governance reforms, and anti-corruption measures, laid the critical groundwork for this favourable result. His direct engagement and foresight in establishing a high-level negotiating team were the driving force behind this success.” 

The Chairman also expressed his sincere appreciation to the national negotiating team, which, with its expert skills and fact-based approach, successfully navigated this challenging situation.

Furthermore, he extended his gratitude to the diplomatic teams, private sector stakeholders, including the various chambers and associations, and international partners. Their collective efforts, unified voice, and invaluable support were instrumental in this process. This achievement is a clear demonstration of what can be accomplished when the public and private sectors work as one.

The EDB is now focused on leveraging this positive momentum to propel Sri Lanka’s export sector forward. This significant tariff reduction is a powerful tool that offers a tangible competitive advantage for Sri Lankan products in the American market. It is a catalyst for enhanced competitiveness, particularly in key industries. 

The EDB will work tirelessly with exporters to capitalise on the new opportunities that have emerged, not only by regaining lost market share but also by expanding the product portfolio. This includes a strategic push towards more value-added goods and services, moving beyond traditional exports. It will actively support exporters in enhancing their capabilities through programs focused on quality, sustainability, and innovation.

Furthermore, this achievement opens doors for deeper collaboration with international partners. The EDB will explore avenues for technology transfer and trade facilitation to further strengthen Sri Lanka’s position in the US market, building on the goodwill established through these negotiations.

This moment marks a pivotal turning point in Sri Lanka’s journey to economic recovery. It provides a renewed sense of confidence for exporters and investors, reinforcing the nation’s commitment to building a resilient, dynamic, and export-driven economy. By maintaining a united front and continuing to pursue critical reforms, Sri Lanka can overcome even the most daunting challenges, ensuring that the benefits of this success are shared by all Sri Lankans and contribute to the nation’s long-term prosperity.