- APC meeting concludes with agreement to monitor progress and reconvene
President Anura Kumara Dissanayake has revealed at the All-Party Conference (APC) convened by the Government that two letters have been dispatched to US President Donald Trump regarding the ongoing tariff concerns between Sri Lanka and the US, according to Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva.
The first had been a general letter by President Dissanayake, which had been followed by a more detailed letter from the Secretary to the Treasury, outlining specific proposals to resolve the dispute. The President had then proceeded to articulate his commitment to the International Monetary Fund (IMF) programme and why it was imperative to ensure the upkeep of the economy.
The meeting on Thursday (10) brought together key political leaders from several factions, Government officials, and economic advisers to discuss Sri Lanka’s response to potential economic shocks stemming from US trade policies.
The conference had begun with Opposition Leader Sajith Premadasa stressing the need for a united national approach to mitigate the economic fallout, warning of severe consequences such as job losses and factory closures if no action was taken. Other political leaders, including MPs Mano Ganesan, Dayasiri Jayasekara, and Dr. de Silva had also contributed to the discussion.
Speaking to The Sunday Morning, Dr. de Silva, who is also the Chairperson of the parliamentary Committee on Public Finance, provided a technical analysis, stressing the importance of economic reforms and regional integration.
He had urged the immediate signing of the Economic and Technology Cooperation Agreement (ETCA) with India to leverage regional growth opportunities. He had also proposed a Harmonised System (HS) Code-based trading approach, which could potentially be negotiated with the US to enhance bilateral relations and resolve the issue.
While President Dissanayake acknowledged these points, he did not commit to any specific course of action, according to Dr. de Silva.
Dr. de Silva noted that while the US’s approach, particularly Trump’s focus on trade deficits, was flawed, Sri Lanka must adopt a pragmatic stance given the transactional nature of Trump’s negotiations.
“There’s no point in trying to reason out on the basis of logic, because he does not really care for it. We know it is structured completely wrong,” he said.
When asked how the US had arrived at the figure of 88% in tariffs, Dr. de Silva said that the entire calculation was misleading.
“We don’t tax them at 88%. The number is completely misaligned. It’s derived simply by dividing the trade deficit by the value of imports from Sri Lanka, using arbitrary parameters. This has nothing to do with actual tariffs. There’s no point debating it on technical grounds because the premise itself is flawed.”
The discussion had also touched on Sri Lanka’s need for deeper integration with regional trade blocs, particularly India, to bolster economic resilience. Dr. de Silva criticised past political resistance to trade agreements, which he argued had hindered Sri Lanka’s growth.
Additionally, concerns were raised about the potential loss of the European Union’s (EU) GSP+ trade concessions due to upcoming legislative changes in the EU. Dr. de Silva warned that all beneficiary countries, including Sri Lanka, would lose GSP+ by next year and would need to reapply under new regulations. He stressed the importance of securing a transitional arrangement to avoid disruptions.
The APC had concluded with an agreement to monitor progress and reconvene for further discussions. While no formal committee had been established, there had been suggestions to form a working group. Government officials are expected to engage with US trade representatives during the upcoming IMF and World Bank Spring Meetings in Washington, DC.