Sri Lanka’s government formed a working group aimed at evaluating the repercussions of the US’ tariffs on Sri Lanka goods, which will impact its fashion export sector.
JAAF, whose members include the Sri Lanka Apparel Exporters Association and the Fabric and Apparel Accessory Manufacturers Association among others, has thrown its full support behind this initiative.
The task force is in the process of crafting a proposal slated for submission to President Anura Kumara Dissanayake.
JAAF secretary general Yohan Lawrence said: “We appreciate the urgency with which the Government has responded. We are working closely with the relevant authorities to determine a constructive path forward that also remains consistent with Sri Lanka’s ongoing IMF programme.”
With over 40% of its exports heading to the US, a figure surpassing $5.5bn in 2023, Sri Lanka considers the US its most crucial apparel export destination.
The policy, enacted by US President Donald Trump on 2 April institutes an immediate baseline tariff of 10% on all imports into the US, which started on 5 April.
Subsequently, on 9 April, this rate will escalate for each country based on the US administration’s assessment of “Tariffs charged into the USA.”
For Sri Lanka, this means an increase from the baseline to a staggering 44%. The apparel industry fears that this could significantly disrupt the nation’s primary export domain.
However, it maintains a steadfast commitment to principles such as ethical production, transparency, and sustainable practices.
“This tariff is significantly higher than what our regional competitors face. We could see a rapid shift in US sourcing away from Sri Lanka, which would be extremely difficult to recover from,” Lawrence stated.
Meanwhile, Sri Lankan officials have affirmed their readiness to engage with the US to fortify trade ties.
A statement from the Ministry of Finance, Planning and Economic Development reads: “We are committed to substantially reduce tariff and non-tariff barriers that hinder trade and investment.”
–-Agencies
