Minister of Labor and Deputy Minister of Economic Development, Dr. Anil Jayantha Fernando, says that active discussions are underway with the relevant parties regarding the United States’ newly introduced tariff system and Sri Lanka’s future course of action.
Speaking at a media briefing held at the Government Information Department today (06), the Deputy Minister elaborated on the current stance of the government and its diplomatic response to the situation.
He explained that while certain groups are spreading misleading narratives in the public domain, the Ministry of Finance officially issued a press release addressing the matter on April 4. That document was submitted to the United States Embassy in Colombo.
He added that this issue has also been raised with high-level institutions such as the United States Department of State, the White House, the U.S. Trade Representative’s office, and the International Monetary Fund (IMF). According to him, this is the formal and accurate representation of events.
“The statement was issued on the second day. This matter was also discussed through the online system. They asked us to submit proposals. We will be submitting our proposals at a meeting scheduled for Tuesday,” Dr. Fernando said.
He emphasized that Sri Lanka, being a small nation, does not possess the capacity to retaliate against the United States using similar measures. Instead, the country must look at creative and viable alternatives, such as exploring new markets to mitigate the impact.
“Once the 44% tariff is implemented, around 80 to 86 percent of our main export sectors will be directly impacted,” he said. “This includes garments, plastic and rubber products, food processing items, jewelry, and more. Altogether, 86% of our key export products will suffer.”
“With the introduction of this tariff, our products will become uncompetitive in the US market,” he continued.
Dr. Fernando explained that in discussions with US trade representatives, the Americans suggested that Sri Lanka should present proposals to reduce the trade gap between the two countries. “They asked us to show how we plan to narrow this gap. We are set to submit our final proposals on Tuesday,” he said.
He further stated that the US had floated the idea of setting a general import tariff rate at 10%. For goods imported from countries like Sri Lanka, they suggested that rates below 20% might be negotiable.
“We are giving special attention to the five sectors most affected,” he said.
In conclusion, Dr. Fernando underlined that Sri Lanka’s diplomatic efforts are focused on creating sustainable solutions through dialogue, strategic market diversification, and cooperation rather than confrontation.
