Sri Lanka's Export Tariff Challenge with the US
The US has imposed a 20% tariff on Sri Lankan exports, reduced from an earlier proposed rate. Sri Lanka's negotiator, Harshana Suriyapperuma, views this as an opportunity to level the playing field with competitors. The government plans to consult with businesses to leverage the tariff for potential technological and investment opportunities.
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- Sri Lanka
The United States has announced a 20% tariff on exports from Sri Lanka, reflecting a 24% reduction from the earlier proposed rate for the South Asian nation.
This tariff, effective August 7, is seen as an opportunity to put Sri Lanka on equal footing with its global competitors, says Harshana Suriyapperuma, the government's chief negotiator. "This puts us on level ground with our competitors, so we must strategize to capitalize on this advantage," Suriyapperuma stated, emphasizing the government's plan to collaborate with local entrepreneurs.
Despite the reduction in tariffs from 44% to the current 20%, Sri Lanka was aiming for an even lower rate. The garment and rubber industries, which account for USD 3 billion in exports, face challenges remaining competitive. In light of ongoing negotiations, Sri Lanka seeks to explore new prospects for technology transfer and increased investment.
(With inputs from agencies.)
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