Harsha urges bipartisan push for better US trade deal amid tariff concerns

Friday, 11 July 2025 02:39 - - {{hitsCtrl.values.hits}}

Welcomes drop from 44% to 30% tariff, but warns it’s still too high to stay competitive
Notes Sri Lanka’s apparel sector risks 350,000 jobs and $ 2 b in exports
Warns competitors like Vietnam (20%) and India (26%) have better terms
Criticises Govt. for lacking full-time trade negotiation team since November 2024
Offers Opposition support to secure stronger trade deal before 1 August deadline

The main Opposition party, Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva yesterday called for urgent cross-party collaboration to renegotiate a more favourable trade agreement with the US, warning that the recently revised 30% tariff on Sri Lankan exports still poses a significant threat to the country’s economic stability and key industries, particularly apparel.

Taking to ‘X,’ he welcomed the reduction in US import tariffs on Sri Lankan exports from the initially proposed 44% to 30%, but cautioned that the new rate may still not be sufficient to maintain the country’s competitiveness.

“With 350,000 apparel jobs and 600,000 linked roles at stake—plus over $ 2 billion in export revenue—we must outperform our key rivals. Vietnam sits at 20%, Bangladesh at 35% (still negotiating), and India is pushing aggressively. This 30% stacks on top of existing Most-Favoured-Nation (MFN) tariffs (0-25%, averaging ~12% for key Harmonised System codes), lagging behind competitors,” he pointed out.

Dr. de Silva claimed that his repeated calls to the Government to leverage Sri Lanka’s expertise for a stronger deal have been ignored.

“Alarmingly, the international trade negotiator position remains vacant since November 2024, with no dedicated team in place—just part-time negotiators. We desperately need a robust national export strategy to guide us,” he added.

Dr. de Silva expressed concern that Sri Lanka is lagging in both diplomacy and institutional preparedness, especially as the deadline for finalising trade terms with the US is set to take effect on 1 August.

“The Opposition stands ready to support the Government, setting aside political affiliations, to get this right for Sri Lanka,” he noted.

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