Ceylon Chamber expresses deep concerns over tariffs

The Ceylon Chamber of Commerce has expressed deep concern over the imposition of a 44% tariff on Sri Lankan exports to the United States (US). 

With the US accounting for approximately USD 3 billion in exports and 25% of Sri Lanka’s total merchandise export, this development poses a significant challenge to the country’s trade and economic stability, the Chamber said in a news release. 

Additionally, broader global trade disruptions could slow economic growth, affecting overall demand in key export markets such as the US and the EU, the Chamber said.

‘We appreciate the President setting up a committee to evaluate the impact of the US tariffs and provide solutions to mitigate potential risks to the export sector. Since we are halfway through the IMF Extended Fund Facility programme and navigating a tight fiscal space, it is vital that Sri Lanka is able to negotiate down from the high tariff band,’ it said.

The news release added that it is an opportune moment for the Government to relook at its tariff structure and implement measures that will improve trade facilitation and improve the ease of doing business.  

‘The Ceylon Chamber remains committed to working closely with the Government to develop a coordinated and strategic response to mitigate the potential economic impact of these tariffs. We urge all stakeholders to collaborate in ensuring that Sri Lanka’s trade interests are safeguarded, while actively pursuing diplomatic and policy-driven solutions to sustain and strengthen its export sector.’