• Trade deficit with US provides some advantage, but currency concerns remain
• Govt. analysing impact and engaging in discussions with US Trade Rep.

Sri Lanka’s apparel and textile sectors are in the direct crosshair of US President Donald Trump’s trade tariffs, although the anticipated impact is currently at a lower level, Economic Development Deputy Minister Prof. Anil Jayantha Fernando said.

Speaking yesterday (18) at Parliament, he said that the US tariffs, which are based on the trade gap between the US and other trading countries, have put Sri Lanka in an advantageous position as the US is in a trade deficit with Sri Lanka.

“However, when compared to the US dollar, we think we are in a weak position, since we are not a strong currency, the impact we can have is at a lower level,” he said.

He said based on the 2024  international trade numbers with the US, apparel and textile, rubber and rubber products, coconut and coconut based products and plastic products which accounts to 86% of our export revenue, have been identified as the sectors that could be impacted from the tariffs.

According to the US Trade Representative Office, the US total goods trade with Sri Lanka was an estimated $ 3.4 billion in 2024, as US goods exports to Sri Lanka in 2024 were $ 368.2 million, up 4.9% ($ 17.1 million) from 2023.

While the US goods imports from Sri Lanka totaled $ 3 billion in 2024, up 6.1% ($ 173.5 million) from 2023. Therefore, the US goods trade deficit with Sri Lanka was $ 2.6 billion in 2024, a 6.3% increase ($ 156.4 million) over 2023.

Moreover, Fernando said that since Sri Lanka has good diplomatic ties with the US, the negative impact from the Trump tariffs is very low.

He said that the Finance Ministry, Trade Ministry and the Export Development Board are currently analysing the impact of the tariffs while Sri Lanka’s ambassador to US has started discussions with the Trade Representative office of the US and have come to primary understandings.