US Tariff Sparks Economic Tensions in Sri Lanka

Sri Lanka faces economic challenges as the US imposes a 30% tariff on imports from the country. This decision results from poor negotiations and endangers jobs in the export sector. The opposition criticizes the government, while analysts highlight that Vietnam negotiated better terms by reducing tariffs on US imports.

Sri Lanka's main opposition has criticized the government following a decision by the United States to impose a 30% tariff on all imports from the island nation. Calling it a consequence of ineffective negotiations, the opposition is alarmed by the potential economic repercussions.

The US government announced these tariffs as part of a broader initiative affecting multiple nations. Opposition leader Sajith Premadasa expressed dissatisfaction, citing this tariff as the cost of poor diplomatic efforts. Analysts warn this could threaten 50,000 jobs within the export sector.

Additionally, economist Talal Rafi indicated that the new tariffs pose significant challenges for the local economy. He suggested that Sri Lanka should have considered reducing tariffs on US exports to secure more favorable terms, pointing out that Vietnam managed a 20% tariff after such negotiations. The new tariff comes into effect on August 1, 2025.

(With inputs from agencies.)