Sri Lanka's Garment Industry Faces Tariff Turmoil

Sri Lanka's garment sector may face significant challenges due to a proposed 30% tariff by U.S. President Donald Trump. The country exports a substantial portion of its apparel to the U.S., making this levy a potential economic obstacle. Other garment-exporting nations like Vietnam face lower tariffs, putting Sri Lanka at a competitive disadvantage.

Sri Lanka's garment industry is currently facing a looming threat as U.S. President Donald Trump has announced a 30% tariff on imports from the nation. This decision, warned a leading industry organization, could spell distress for an industry that is vital to Sri Lanka's economy.

The United States accounts for approximately 40% of Sri Lanka's apparel exports, generating $1.9 billion last year and making the sector the third-largest source of foreign exchange for the country. With 300,000 employees, most being women, the industry is understandably concerned about the new levy, especially since competitors like Vietnam are subjected to lower tariffs.

Despite the announcement, there is still hope for ongoing discussions, according to Yohan Lawrence of the Joint Apparel Associations Forum. The Sri Lankan government is expected to address the issue in a forthcoming news briefing, especially as the IMF recently noted the nation's generally positive economic outlook amid global trade policy uncertainties.

(With inputs from agencies.)