Sri Lanka has emerged as one of the top-performing nations in Asia during high-stakes trade negotiations with the United States. As President Donald Trump prepares to end tariff concessions on July 9, a joint bilateral agreement is reportedly in place between the two countries. With new trade opportunities on the horizon, Sri Lanka may have just dodged a major economic bullet. Here’s what you need to know.
Sri Lanka Achieves Major Breakthrough in US Tariff Talks as Trump Set to End Trade Concessions
In a significant diplomatic and economic achievement, Sri Lanka has successfully reached a joint agreement with the United States on tariffs, just days before a critical July 9 deadline. The announcement comes amid growing global uncertainty, as US President Donald Trump prepares to end temporary tariff relief for multiple countries including Sri Lanka.
According to Deputy Minister of Labor and Economic Development, Professor Anil Jayantha, the groundwork has been laid for a positive resolution. The finalized bilateral agreement between Sri Lanka and the US is expected to be officially presented before the public by next Wednesday (July 9).
The existing 90-day tariff concession granted by the US is set to expire on that same date. Professor Jayantha noted that Sri Lanka held discussions with US representatives on two separate occasions regarding the tariffs and made the most progress in the entire Asian region.
He emphasized that the Sri Lankan government is optimistic that the export market will remain unaffected and that the nation is now poised to strengthen its economic relationship with the United States. The agreement, he noted, could pave the way for new trade investments and deeper bilateral cooperation.
“We believe we can turn this into an opportunity. Not only will our exports be safeguarded, but we also aim to build long-term trade relationships beyond the current framework,” he said.
Meanwhile, President Trump has maintained a firm stance. In recent remarks, he confirmed that the temporary tariff exemptions will not be extended. Countries failing to reach new agreements with the US will face hefty trade penalties. According to Trump, formal notices are already being sent to the respective governments.
“Congratulations, we will allow you to shop in the United States. You’re going to pay a 25% tariff, or 35%, or 50%, or 10%,” the US President is quoted as saying in those letters.
While many nations scramble to finalize trade terms with Washington, Sri Lanka appears to be one of the few to have successfully navigated the talks in time. The upcoming formal release of the agreement will be a key moment, likely to impact export strategies, investor confidence, and the broader trajectory of Sri Lanka–US economic ties.
