Govt. urges energy imports, fair market access to reduce trade gap with US

Above:Both teams at the trade negotiations in Washington.

The Government is planning to import energy and fair access to markets in a bid to reduce the trade deficit with the United States.

Sri Lanka has officially submitted a package of comprehensive trade reform proposals to the US in an attempt to narrow the growing US-Sri Lanka trade deficit and eliminate restrictions on imports.

The proposals, both tariff and non-tariff in character, are being reviewed by US officials, with Sri Lanka awaiting a formal response.

Deputy Finance and Planning Minister Harshana Suriyapperuma, who led the Sri Lankan delegation in Washington recently, confirmed that a set of of formal documents was handed over to U.S. Trade Representative Jamieson Greer and other top officials.

The objective is principally to ensure Sri Lanka's comparative benefit the two countries trade as well as lay the foundation for additional economic cooperation.

We are waiting for a response to the proposals we have put forward," Mr Suriyapperuma said at a media conference in Colombo on Wednesday. "We've also made it clear we're willing to explore further negotiations if US exporters wish to continue, especially in areas where there is clearly potential."

Energy is one of these sectors. Since oil and gas imports form the bulk of Sri Lanka's foreign purchases, the government has proposed the opening up of procurement opportunities to American firms.

The deputy minister noted that Sri Lanka is offering a level playing field to competitive suppliers in liquefied gas, crude oil, refined fuel, and broader energy sectors.

“There is vast opportunity for U.S. vendors to supply energy products to Sri Lanka,” he said. “We’ve invited their suppliers and stakeholders to explore this further.”

The deputy minister also identified two key objectives behind the negotiations: reducing the US trade deficit with Sri Lanka, and streamlining tariffs to increase bilateral trade. But he cautioned that Sri Lanka's ability to implement some of the reforms is limited by its commitments under the ongoing IMF program.

"Our decision-making is bounded by the framework set under the IMF program, and we have communicated this in the negotiations," he added.

With the offers now in America's hands, Sri Lanka is optimistic about initiating the next round of negotiations. Success of this trade offensive may become a watershed moment in enhancing US-Sri Lanka economic relations in an evolving global trade environment. (Bandula)