Deputy Minister of Economic Development, Prof. Anil Jayantha Fernando, announced yesterday that the United States has presented Sri Lanka with a list of 1,161 product lines, including apparel and 42 agricultural items, for potential duty-free entry under a fresh proposal.
This development comes as a high-level Sri Lankan delegation prepares to leave for Washington today (18) for the final round of discussions aimed at securing broader tariff concessions.
“This demonstrates strong goodwill from the US side, as it targets our most vital export sectors,” Prof. Fernando said during a television appearance, noting that the proposed list could allow approximately 80% of Sri Lankan exports to enter the US market without duties.
The offer emerges amid intense negotiations to mitigate the planned hike in US tariffs on Sri Lankan goods, set to rise to 30% from August 1 under a reciprocal tariff policy introduced by the Trump administration earlier this year.
Prof. Fernando added that during a recent meeting chaired by President Anura Kumara Dissanayake, export industry representatives were instructed to review the proposed product lines against their current export portfolios to maximise potential benefits.
However, he cautioned that specific details of the draft agreement remain confidential due to diplomatic and technical sensitivities.
In parallel, discussions are underway to reduce or eliminate tariffs on Sri Lankan imports from the US. “Currently, imports from the US attract duties ranging from 0% to 20%, but our total annual import volume from the US is only slightly over \$300 million. Therefore, any tariff reduction on imports will have a minimal impact on government revenue,” he explained.
These negotiations are seen as crucial for Sri Lanka’s export sector, particularly the apparel industry, which accounts for over 40% of the nation’s export earnings and risks severe repercussions if the full 30% tariff is enforced.
“The focus remains on securing the best possible concessions before the 1 August deadline,” Prof. Fernando said, expressing optimism for a favourable outcome in the upcoming discussions.
The US had already lowered tariffs from 44% to 30% earlier this year, and any further reductions or exemptions are expected to provide significant support to Sri Lankan exporters during this period of global economic volatility.
