Sri Lanka to Work with US on Trade Deficit, Tariffs

Colombo, Apr 25 (PTI) Sri Lanka has expressed its readiness to work with the US government over its move to impose tariffs to deal with the trade deficit, a statement from President Anura Kumara Dissanayake's office said on Friday.

“Sri Lankan delegation highlighted the prompt and positive commitment of the Sri Lankan government to work with the US in reducing the trade deficit, and lowering tariff and non-tariff barriers," the statement said.

This was discussed at the Sri Lankan delegation's meeting with US Trade Representative Ambassador Jamieson Greer on April 22 in Washington.

The delegation updated Greer about the challenges faced by the island nation in the past and the steps being taken to overcome future issues and move towards full economic recovery.

Sri Lankan exports to the US are valued at USD 3 billion, mostly apparel and rubber goods.

The new tariffs made Sri Lankan exports subject to a 44 per cent tax as the island nation taxed US imports at 88 per cent.

Analysts said the new US tariff bands would cause depleted volumes in orders.