US offers 1,161 product lines for potential duty-free access: Deputy Minister

Friday, 18 July 2025 00:12 - - {{hitsCtrl.values.hits}}

Economic Development Deputy Minister Dr. Anil Jayantha Fernando

Economic Development Deputy Minister Dr. Anil Jayantha Fernando says proposal includes 80% of Sri Lankan exports for duty-free consideration
Describes it a “strong signal of goodwill” from US
Reveals President inquired exporters to review HS codes and assess alignment with offer list
Notes details remain confidential due to diplomatic sensitivities
Sri Lankan delegation departs to Washington today for final round of tariff negotiations

Economic Development Deputy Minister Prof. Anil Jayantha Fernando yesterday announced that the US has offered a list of 1,161 product lines, including apparel and 42 agricultural items, which could potentially receive duty-free access under the new proposal.

The announcement comes ahead of a Sri Lankan delegation set to depart for Washington today (18) to continue the final round of discussions aimed at securing further tariff concessions.

“This is a strong signal of goodwill from the US. It covers the most critical export segments for us and the discussions are progressing constructively,” Dr. Fernando said.

Speaking during a television program, he said the US has proposed allowing around 80% of Sri Lankan exports to enter the US market duty free.

The offer comes amid ongoing high-level trade negotiations between the two countries ahead of a scheduled increase in US tariffs on Sri Lankan goods to 30% from 1 August, as part of a broader reciprocal tariff policy initiated by the Trump administration earlier this year. “During the recent meeting chaired by President Anura Kumara Disanayake, he inquired the export industry stakeholders to review the Harmonised System (HS) codes and assess how well the proposed list of 1,161 product lines align with their export portfolios,” he said.

However, the Deputy Minister cautioned that the details of the agreement remain confidential due to the technical and diplomatic sensitivities involved.

In parallel, he said Sri Lanka is also negotiating for reduced or zero tariffs on imports from the US. “Imports from the US currently fall within a 0% to 20% tariff range, but our overall import volume from the US is relatively small, which is slightly over $ 300 million annually. So, even a modest adjustment would not severely impact the Government revenue,” he added.

The ongoing negotiations are seen as critical for Sri Lanka, whose export competitiveness faces increasing pressure from global economic uncertainty and shifting trade dynamics. The garment industry in particular, which contributes to over 40% of Sri Lanka’s total export earnings, would be significantly affected if the proposed 30% tariff is fully enforced.

“The objective is to continue these discussions and negotiate for additional concessions for our exports,” he said, adding that they remain hopeful that the upcoming round of negotiations will yield concrete outcomes before the 1 August deadline.

The US has already reduced tariffs from 44% to 30%—further reductions or exemptions would provide much-needed relief to Sri Lankan exporters and help stabilise trade flows.

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