Friday Dec 12, 2025
Friday Dec 12, 2025
Friday, 12 December 2025 00:28 - - {{hitsCtrl.values.hits}}
US Under Secretary of State for Political Affairs Allison Hooker
The President’s Media Division yesterday said that visiting US Under Secretary of State for Political Affairs Allison Hooker has conveyed to President Anura Kumara Dissanayake that the US has drawn its attention to restarting tariff negotiations with Sri Lanka.
While affirming that the United States stands ready to provide any necessary support to assist Sri Lanka’s post-Ditwah recovery, Hooker expressed support for enhancing tourism between the United States and Sri Lanka, as well as for the growth of trade and maritime operations between the two nations. Furthermore, she said the US would support Sri Lanka’s initiatives to combat drug-related issues.
In October, long before Cyclone Ditwa, the Asian Development Bank warned that Sri Lanka’s recovery will face pressure in 2026 as new US tariffs on apparel and rubber exports start to bite.
While growth this year and in 2025 is expected to hold at 3.9% on the back of manufacturing, construction and services, the ADB projects a slowdown to around 3.3% in 2026 as external demand weakens and job losses filter through.
The report noted that US tariff rates have climbed to their highest levels since the 1930s, pushing Sri Lanka’s effective tariff burden sharply higher. IPS separately estimated that the 20% reciprocal tariff could cut export earnings by $634 million and threaten nearly 16,000 apparel-sector jobs.
The ADB said risks to the outlook remain elevated, citing trade-policy uncertainty, energy-price volatility, Middle East remittance exposure, global demand softness and domestic weather disruptions.
Earlier this week, US-based Newsweek published an interview with President Dissanayake where he said Sri Lanka wanted market access, climate financing and technology partnerships with the US. “What we offer (the US) is a strategically placed, stable, democratic partner in the Indo Pacific.”
