High-level delegation heads to Washington to press for further US tariff relief

Foreign Minister Vijitha Herath

 Cabinet Spokesman and Minister Dr. Nalinda Jayatissa

• Foreign Minister Vijitha Herath says visit starting Friday is to seek further reduction in 30% reciprocal tariff on exports
• Cabinet Spokesman and Minister Dr. Nalinda Jayatissa says no change to current negotiation team
• Opines negotiations based on export industry feedback

By Charumini de Silva 

Foreign Minister Vijitha Herath yesterday confirmed that a high-level Government delegation is scheduled to depart for Washington, D.C. on Friday (18) for a final round of negotiations to secure further reductions in 30% US reciprocal tariffs on Sri Lankan exports. 

The visit comes ahead of the 1 August implementation deadline for the revised US tariff regime, which lowered duties on Sri Lankan exports from 44% to 30%. Although the initial cut has been seen as a modest gain, the Government is under mounting pressure from exporters and Opposition lawmakers to secure more favourable terms amid regional competition and overall economic recovery efforts.

“This is part of our ongoing diplomacy and economic engagement with the US. The objective is to continue these discussions and negotiate for additional concessions for our exports,” Herath told journalists.

Separately, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa reiterated the Government’s confidence in the current negotiation team, affirming that “there will be no change” in its composition.

“We have faith in the team because they were the ones who managed to bring the original tariff down from 44% to 30%,” he said at the weekly post-Cabinet meeting media briefing yesterday.

Responding to criticism from some quarters, Dr. Jayatissa stressed that the negotiations were not conducted in isolation. “These discussions with the Office of the US Trade Representative (USTR) were based on detailed feedback from export industry stakeholders and associations. 

Many of these were also chaired by the President himself. Therefore these discussions were not arbitrary,” he clarified.

He also noted that the talks with USTR have proceeded on a “professional basis” and cautioned against public speculation. “Various factions can say many things, based on assumptions—but that doesn’t mean it’s how a Government works,” Dr. Jayatissa added.

Many export industries including apparel and rubber argue that a 30% tariff still leaves Sri Lanka at a significant disadvantage compared to regional competitors such as Vietnam and India, who enjoy more favourable market access (https://www.ft.lk/front-page/Apparel-industry-expresses-concern-over-30-US-tariff-on-Sri-Lanka/44-778859).

Opposition MP Dr. Harsha de Silva recently warned that Sri Lanka was “falling behind” in securing competitive trade terms and called for bipartisan cooperation to strengthen the country’s trade negotiation capacity. He also criticised the lack of a permanent international trade negotiation team and raised concerns about institutional readiness (https://www.ft.lk/front-page/Harsha-urges-bipartisan-push-for-better-US-trade-deal-amid-tariff-concerns/44-778855). 

In terms of broader geopolitical concerns, Dr. Jayatissa assured Sri Lanka’s neutral stance on trade. “Sri Lanka is open for trade with all the counties in the world. There is no bias. We are following the friends of all enemies of none policy,” he added. 

Experts opined that the outcome of the upcoming negotiations will likely play a critical role in shaping not only the country’s export competitiveness, but also its broader trade strategy, especially at a time when foreign exchange earning and export resilience remain central to economic recovery.

The Free Trade Zone Manufacturers’ Association (FTZMA) last week expressed deep concern over the US tariff situation, noting that it may trigger the loss of up to 50,000 jobs in the initial phase and nearly 20% of Sri Lanka’s trade earnings, driven largely by exports, could be in jeopardy (https://www.ft.lk/front-page/Sri-Lanka-faces-50-000-job-loss-risk-amid-looming-US-tariffs-FTZMA/44-778692).