Private sector welcomes progress in US tariff talks

• The Ceylon Chamber calls for long-term trade deals and removal of non-tariff barriers for wider market access
• JAAF backs ongoing efforts to promote ethical, sustainable manufacturing 
• EASL urges Government to keep momentum through further trade support 
• SLAMERP warned that earlier 44% tariff created existential crisis 
• CRTA says tariff reduction opens new doors to US market

Five major industry bodies, The Ceylon Chamber of Commerce, the Joint Apparel Association Forum (JAAF), the Exporters Association of Sri Lanka (EASL), the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) and the Colombo Rubber Traders’ Association  (CRTA) have welcomed the drop in US tariffs on Sri Lankan goods from 30% to 20%. 

The Ceylon Chamber praised the outcome but said Sri Lanka should now aim for long-term trade deals that give exporters more stability. It also called for efforts to remove other trade barriers and to expand into new markets.



JAAF said the lower tariff helps keep Sri Lanka’s clothing exports competitive with countries like Bangladesh and Vietnam. It credited the Government and diplomats for their efforts and said it would continue pushing for fair trade, better labour standards, and innovation in the industry.

The Exporters Association said the lower rate was a timely win for exporters and thanked the Government for its work. It urged the authorities to keep the talks going and look at other ways to support exports.

The rubber industry group SLAMERP said the earlier 44% tariff would have badly hurt exporters and risked thousands of jobs. It welcomed the lower rate but asked the Government to also help locally, with tax relief and lower input costs to help the industry stay strong.

Their statements are reproduced as follows:

The importance of durable trade terms

The Ceylon Chamber of Commerce commends the Government of Sri Lanka and the national negotiation team on the successful outcome of recent discussions with the United States, which led to a further reduction in the reciprocal tariff rate – from 30% to 20% – on Sri Lankan exports.

 “While this is clear progress reflecting the value of sustained engagement and strategic diplomacy, it is now important to use this window of opportunity to work towards a long-term arrangement that ensures more stable and competitive market access for our exporters,” stated Ceylon Chamber Chairman Krishan Balendra.

 We appreciate the efforts of the officials involved for their proactive and strategic efforts, particularly in engaging with the US Government and the Office of the United States Trade Representative (USTR) to secure this positive result.

 As Sri Lanka continues its path toward economic recovery, we encourage further collaboration to address remaining non-tariff barriers and foster a more enabling environment for bilateral trade and investment. Deepening commercial ties in a mutually beneficial manner will be critical to strengthening Sri Lanka’s export competitiveness. At the same time, the country must focus on diversifying its export portfolio and expanding market access through strategic trade agreements.

 The Ceylon Chamber will continue to work with the Government through practical engagement, informed input from industry, and clear representation of private sector priorities.

Paving the way for further tariff reductions 

The Joint Apparel Association Forum (JAAF) welcomes the revised reciprocal tariff rate of 20% on Sri Lankan exports to the United States and commends the Government of Sri Lanka for its steadfast efforts in securing this critical outcome for the apparel sector.

We extend our sincere gratitude to President Anura Kumara Disanayake for his leadership and to the negotiating team led by Secretary to the Treasury Dr. Harshana Suriyapperuma, for their pragmatic and sustained engagement since the initial tariff announcement in April. Their tireless efforts throughout this complex process have been instrumental in achieving a fair and competitive outcome for Sri Lankan exporters.

We also wish to acknowledge the invaluable role played by Ambassador of Sri Lanka to the United States Mahinda Samarasinghe, and the Sri Lankan Embassy in Washington, D.C. Their ongoing diplomatic engagement and advocacy were pivotal in facilitating constructive dialogue with US stakeholders.

The revised tariff rate brings Sri Lanka into closer alignment with other leading apparel-exporting nations in the region — including Bangladesh, Cambodia, Vietnam, Indonesia, and Pakistan — thereby ensuring a more level playing field and preserving the competitiveness of Sri Lanka’s apparel industry in the key US markets.

JAAF remains firmly committed to working in close partnership with the Government of Sri Lanka and our counterparts in the United States to promote ethical labour practices, environmental sustainability, and innovation in apparel manufacturing. We are confident that these shared values, combined with continued diplomatic engagement, will contribute to deeper bilateral trade relations and pave the way for further tariff reductions in the future.

Boost to competitiveness

The Exporters Association of Sri Lanka warmly welcomes and commends the significant progress achieved in the trade negotiations between Sri Lanka and the United States, which have led to a reduction in tariffs on Sri Lankan exports to the US market, now lowered to 20%.

We express our sincere appreciation to the Government of Sri Lanka and, in particular, the dedicated efforts of the negotiation team led by Dr. Harshana Suriyapperuma. This achievement reflects the strategic foresight, persistence, and professionalism of the team in navigating a complex international trade environment to secure more favourable terms for Sri Lankan exporters.

We also extend our heartfelt thanks to the Ambassador of Sri Lanka to the United States Mahinda Samarasinghe, for his steadfast diplomatic support and engagement, which have been instrumental in advancing these discussions and building stronger bilateral trade relations.

This development is a timely and much-needed boost for Sri Lankan exporters, enhancing our competitiveness in a key global market and contributing to the broader recovery and growth of our national economy.

We look forward to continued dialogue with the Government to ensure that the momentum gained is sustained and that further trade facilitation measures are pursued to strengthen Sri Lanka’s export sector.

Timely and strategic win 

The Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) expresses its deep appreciation to the Government of Sri Lanka for its timely and effective diplomatic efforts, which have led to the successful reduction of the US reciprocal tariff on rubber-based exports to 20%, down from the initially proposed 44%. 

This revised rate significantly eases the pressure on Sri Lanka’s export competitiveness and ensures continuity in a key market that contributes substantially to the country’s foreign exchange earnings. 

This is a timely and strategic win: The United States is one of the largest export destinations for Sri Lankan rubber products, accounting for nearly a third of the sector’s annual export value. The original tariff proposal of 44% posed an existential threat to the industry, risking order cancellations, job losses and long-term erosion of market share. 

Thanks to persistent advocacy and high-level Government intervention, Sri Lanka has now secured a much-improved rate of 20%, aligning more closely with key competitors in the region. While 20% still presents a competitive challenge, it is a substantial improvement from the originally proposed 44%, which could have been catastrophic for many exporters. 

SLAMERP President Pushpika Janadheera welcomed the development with the following statement: “We are grateful to the Government of Sri Lanka, particularly the President, Minister of Foreign Affairs, and the Department of Commerce, for taking swift and decisive action to protect our national interest. The reduction of the tariff from 44% to 20% provides relief for hundreds of exporters and safeguards thousands of livelihoods across the country.” 

“This outcome reflects what can be achieved when the public and private sectors work in close collaboration. We also acknowledge the role played by our diplomatic mission in Washington D.C., whose engagement was instrumental in ensuring that Sri Lanka’s value-added rubber exports were fairly considered.” 

The rubber products sector, encompassing industrial gloves, tyres, mats, hoses, and medical items, supports over 300,000 livelihoods across Sri Lanka. The revised tariff ensures: sustained access to a $ 300+ million export market; stability of rural incomes linked to natural rubber supply chains; and renewed confidence among international buyers and investors. 

While this development provides significant relief, SLAMERP reiterates the need for continued strategic engagement with global trading partners to secure long-term market access. We also urge the Government to consider parallel domestic policy support, particularly the extension of SVAT, reductions in input costs, and incentives for export diversification to further strengthen Sri Lanka’s export ecosystem.

SLAMERP stands ready to work alongside Government stakeholders to capitalise on this momentum, support economic recovery, and ensure Sri Lanka remains a preferred sourcing destination for quality rubber products.

Tariff reduction opens new doors 

The Colombo Rubber Traders’ Association (CRTA) extends its heartfelt appreciation to the Government of Sri Lanka for its successful diplomatic and trade negotiations leading to the reduction of import tariffs on rubber product exports from Sri Lanka to the United States from 30% to 20%.

This significant development marks a milestone for the rubber industry and is a strong testament to the government’s commitment to supporting export-driven sectors and enhancing Sri Lanka’s global trade competitiveness.

This tariff reduction will opens new doors for Sri Lankan rubber manufacturers and exporters. It will strengthen Sri Lanka’s position in the U.S. market, improves price competitiveness, and offers renewed optimism for growth, investment, and job creation across the rubber sector.

The Association commends the Ministry of Trade, the Ministry of Foreign Affairs, and all relevant departments whose coordinated efforts and persistent advocacy were instrumental in achieving this outcome. It is a clear demonstration of what can be accomplished when government and industry work hand-in-hand toward shared national economic objectives.

As one of Sri Lanka’s cornerstone export sectors, the rubber industry is poised to take full advantage of this opportunity by further enhancing product quality, sustainability, and market reach. The CRTA reaffirms its commitment to working closely with the government to build a resilient and globally competitive rubber industry.

The Colombo Rubber Traders’ Association, established in 1918, is one of the oldest commodity associations in Sri Lanka and represents stakeholders across the rubber value chain including producers, brokers, buyers, exporters, and manufacturers.