COLOMBO, July 31, 2025 —
Sri Lanka’s ongoing efforts to reduce tariffs imposed by the United States have encountered significant challenges, Minister of Industry and Entrepreneurship Development, Sunil Handunneththi, revealed on Wednesday.
Speaking at a press briefing, Minister Handunneththi acknowledged that despite multiple rounds of discussions with US officials, progress in securing tariff relief has been limited. “The talks have not yet achieved the breakthroughs we aimed for,” he stated candidly.
Economic Impact and Industry Concerns
Tariffs continue to weigh heavily on Sri Lanka’s export-driven industries, particularly apparel, tea, and rubber—sectors that form the backbone of the nation’s economy and provide livelihoods to thousands of workers across the country.
Industry leaders have expressed frustration over the sustained trade barriers, emphasizing how these tariffs put Sri Lankan products at a disadvantage in the highly competitive US market. “The inability to reduce these tariffs affects not just businesses but entire communities dependent on export earnings,” a senior export sector representative explained.
Government’s Commitment to Solutions
Despite the setbacks, Minister Handunneththi reassured stakeholders of the government’s commitment to persist with diplomatic efforts. “We remain engaged with our US counterparts and are exploring alternative strategies to improve our trade relations,” he said.
He also noted the importance of diversifying Sri Lanka’s export markets to reduce dependency on any single country. “Broadening our trade partnerships is crucial as we navigate these challenges,” he added.
Looking Ahead
Experts emphasize that successful resolution will require not only persistent negotiation but also alignment on regulatory standards and ongoing reforms within Sri Lanka’s trade and industry sectors.
As discussions continue, exporters and policymakers alike remain hopeful that constructive dialogue will pave the way for improved market access and sustained economic growth.
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