Colombo has expressed readiness to engage with Washington on addressing trade imbalances, as it reaffirmed its commitment to strengthening bilateral economic ties. A statement issued by the Ministry of Finance on 4 April said the current tariff imposed by the United States stands at 44%, a figure deemed significant by Sri Lanka, which exports goods worth $3 billion annually to the U.S. market.
According to the statement, Sri Lanka remains committed to exploring reciprocal trade arrangements and seeks to engage with the Trump administration “at the earliest opportunity” to manage trade balances in a “fair manner.” The Dissanayake Government said it intends to reduce tariff and non-tariff barriers that could hinder trade and investment.
The announcement comes days after the U.S, under a directive by President Donald Trump, introduced sweeping tariff increases targeting imports from many countries including Sri Lanka . The U.S is the island’s largest single export destination, with annual shipments, predominantly garments and rubber products, valued at approximately $3 billion.
It is worth noting that amid ongoing economic recovery efforts, following the 2022 financial crisis, Sri Lanka has been under an IMF Extended Fund Facility (EFF) arrangement. The Ministry noted that the U.S has provided support for Sri Lanka’s external debt restructuring process during this period. Citing recent economic data, the Ministry stated that Sri Lanka has stabilised its economy and projected a steady growth of 5% since 2024. However, it cautioned that a global economic slowdown and Sri Lanka’s exposure to international markets could limit the recovery trajectory. The Ministry said improving the ease of doing business remains a key priority. It added that Sri Lanka is working to create an investment environment that encourages innovation and fosters bilateral commercial partnerships.
The statement concluded by expressing optimism that collaborative trade efforts between the two nations could lead to a “new era of growth” and mutual prosperity. No specific timelines, negotiations, or sectoral policies were disclosed in the announcement.