‘If we fail to negotiate on US tariffs, we have other options’: Minister on Sri Lanka’s stance
Sri Lanka’s Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando says that Sri Lanka will hold talks and negotiate the new trade tariffs imposed by the United States on the country’s exports before April 09.
Issuing a clarification on the 44% trade tariffs imposed on Sri Lanka as part of US President Donald Trump’s decision to impose reciprocal tariffs with a baseline 10% tax on all imports and significantly higher rates on dozens of countries, the Minister stated that the government had prior knowledge of the situation, but awaited the US policy decision before taking action.
“We were aware of the situation…but a country cannot go into another country and pressure their policy decisions before they are enacted. This is their common policy, now we have to discuss and take decisions on its negative impact on us,” Dr. Fernando added.
“We have already held a few rounds of internal talks on what happened. These tariffs will come into effect on April 09. We’re hopeful of negotiating and receiving a possible reduction of the tariffs through discussions,” he noted.
Furthermore, the Minister stated that Sri Lankan government is hopeful of receiving a reduction of these new tariffs, since the country is moving forward with the International Monetary Fund (IMF) and is still in a state of recovery.
“We are in a special position right now. Although Sri Lanka has a beneficial trade deficit, the country is moving forward tied with a programme of the International Monetary Fund. The country is in a state of re-building, and is in a hard position…still in the process of stabilizing. So, we have space to explain this situation. This explanation will have to align with their [United States] policy as well.”
The Minister also highlighted possible negative impact on Sri Lanka through the new trade tariffs, explaining that the textile and food exports will possibly be hit and that the country’s export revenue will go down.
Commenting further, the Deputy Minister of Economic Development said that if Sri Lanka fails to receive a positive outcome through the negotiations, the government is confident of moving forward with other options.
“If we fail to negotiate, as US is following a common policy for the whole world, we have other options…As an example, we have the opportunity to discuss a special benefit through the GSP+ tariff system. “
“We are expecting to reach out to the US in a diplomatic manner to hold discussions and to enter a better trade and investment policy while building a long-term relationship, in a way that is beneficial to both countries”, he concluded.