IMF Addresses Impact of New Trump Tariffs on Sri Lankan Exports

The IMF discusses the impact of a new 44% tariff by the US on Sri Lankan exports, affecting apparel and rubber industries significantly. The IMF is willing to adjust the EFF program to mitigate adverse effects. Sri Lanka is negotiating with the US to resolve the issue.

The International Monetary Fund (IMF) highlighted the significant impact of a new 44% tariff imposed by the US on Sri Lankan exports, particularly affecting the apparel and rubber industries, which comprise a substantial portion of Sri Lanka's export economy.

Speaking at a virtual press conference, IMF Mission Chief for Sri Lanka, Evan Papijorju, emphasized that these industries employ a large number of workers in Sri Lanka, noting that the apparel sector alone has over 300,000 employees. Despite the challenges, the IMF remains open to modifying the Extended Fund Facility (EFF) to accommodate the adverse effects and supports the ongoing negotiations between Sri Lanka and the US.

Amidst these developments, Sri Lanka and the IMF reached an agreement on the fourth review of the USD 2.9 billion EFF program. The IMF commended the Sri Lankan government for its commitment to economic reforms, stressing the importance of sustaining momentum and reducing corruption to ensure long-term economic stability and growth.

(With inputs from agencies.)