Sri Lanka is in urgent talks with the US to finalize a trade deal before August 1, hoping to avoid a 30% tariff on exports. Deputy Minister Anil Jayantha confirms efforts to gain tax concessions amid rising pressure.
Sri Lanka is making a last-minute push to finalize a bilateral trade agreement with the United States ahead of an August 1 deadline, according to Deputy Minister of Economic Development Anil Jayantha, who addressed Parliament today, July 11.
Speaking during the session, the Deputy Minister revealed that the U.S. government has issued a formal warning, stating that if Sri Lanka fails to reach a trade agreement before August 1, a 30% tariff will be applied to all Sri Lankan exports entering the U.S. market.
“In light of this, discussions are actively ongoing with U.S. officials to negotiate further tax concessions before the deadline,” Jayantha said.
The revelation comes at a time when Sri Lanka’s export sector is already under stress, and a new wave of tariffs could significantly affect key industries such as apparel, tea, spices, and rubber.
The proposed trade deal is seen as critical to maintaining Sri Lanka’s market access to the U.S. one of its largest export destinations. Officials believe that failing to secure an agreement could lead to billions in export losses, higher product prices, and potential job cuts across export-dependent sectors.
While details of the negotiations remain under wraps, the government’s announcement signals that Sri Lanka is working against the clock to avoid a damaging blow to its already fragile economy.
This move also comes amid broader geopolitical dynamics, as nations reassess their trade alignments in the post-pandemic and high-inflation era. With just weeks remaining, all eyes are now on the U.S.–Sri Lanka trade corridor as both sides weigh political and economic stakes.
