• 44% US tariffs not aimed solely at SL: Deputy Minister
• Govt. optimistic about negotiating an amicable resolution with Washington
• No downward revision planned to $ 18.7 b export goal
• Alternative markets in Europe under consideration to offset US impact

The Government has claimed that it has no plans to revise down the export target for 2025 despite the recent announcement of 44% reciprocal tariffs imposed on Sri Lankan exports by the United States.

Speaking to The Sunday Morning Business, Deputy Minister of Trade, Commerce, and Food Security R.M. Jayawardana stated that notwithstanding the announcement made by US President Donald Trump on 2 April, imposing 44% reciprocal tariffs on all Sri Lankan exports, the Government had no intention of revising Sri Lanka’s 2025 export target. 

He pointed out that the reciprocal tariffs introduced by the US were not specifically targeted at Sri Lanka, but instead were part of a larger policy decision taken by the US impacting countries across the globe indiscriminately. 

Therefore, he was optimistic that an amicable settlement could be reached by directly engaging with the US. 

“Our garment industry exports around $ 1,800 million worth of goods. In addition, we export rubber to the US. In total, we export around $ 3 billion worth of goods to the US. In contrast, we import only a small amount from the US – around $ 300 million. This tax has been imposed on this trade deficit,” he explained.  

Nevertheless, he said that even if an amicable settlement could not be reached with the US, Sri Lanka would adapt and look for alternative markets. He revealed that discussions had already commenced in this regard and that they were looking at Europe to offset any loss of Sri Lanka’s business with the US. 

Accordingly, he claimed that there were no plans to revise the 2025 export target.

“Due to the increased cost of our products as a result of this new tax, we will face increased competition when selling our products. However, despite this increased competition, we do not expect to lose out on 100% of our US business. We will commence discussions to identify alternative markets for any products that do not go to the US,” he added.  

The Export Development Board (EDB) had previously announced that the Government was targeting total export earnings of $ 18.7 billion for 2025. This forecast comprises $ 14.54 billion from merchandise exports and $ 4.16 billion from services exports.