Colombo – June 3, 2025 — Sri Lanka is actively engaging with the United States to resolve tariff issues following a second round of in-person negotiations in Washington, Deputy Minister Harshana Suriyapperuma confirmed.
The talks come after the US initially imposed a 44% tariff on Sri Lankan exports, which has since been temporarily reduced to 10% for a period of three months. Sri Lanka was among the first countries to respond to the US offer for dialogue.
“There are areas that the US wants Sri Lanka to focus on, and areas where Sri Lanka needs support — particularly considering our current economic situation under the IMF program,” said Suriyapperuma. “We believe the discussions, which were very cordial, will lead to a favorable outcome.”
The minister noted that Sri Lanka is in regular contact with the Office of the US Trade Representative (USTR) and believes the country is ahead of others at the negotiation table in terms of progress and cooperation.
The urgency stems from Sri Lanka’s concern over being placed at a competitive disadvantage — particularly in sectors like apparel and rubber, where competing exporters from South and East Asia enjoy lower US tariff rates.
The broader issue of tariffs has sparked legal debates in the US as well. Former President Donald Trump had imposed tariffs via executive orders under national emergency provisions, bypassing Congress. Some US businesses challenged this approach in court, winning a lower court ruling now under appeal.
The situation mirrors domestic concerns in Sri Lanka, where the legality of sudden tax hikes issued via midnight gazettes has drawn criticism for undermining parliamentary authority. Critics liken the practice to a modern form of the royal prerogative, which the Magna Carta famously curtailed in favor of taxation by consent.