Sri Lanka remains confident that ongoing discussions with the United States will resolve concerns related to reciprocal tariffs and proposed supply-chain regulations, Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando said on Friday.
The Deputy Minister was addressing recent reports that the US administration has proposed additional duties of 10% to 12.5% on imports from around 60 economies including Sri Lanka under a forced labour-linked supply-chain investigation, with Sri Lanka understood to be among 45 countries potentially exposed to the higher 12.5% tariff band.
Dr. Jayantha dismissed as “false and misleading” claims that an additional 12.5% tariff has already been imposed on Sri Lanka, saying the reported measures are linked to broader US investigations into global supply chains, particularly concerning allegations of forced labour practices in certain production networks. He said the US has launched supply-chain investigations covering around 60 countries, including Sri Lanka and several Asian and developed economies, and that preliminary investigations have led to proposed measures in some cases subject to further review.
He emphasised that Sri Lanka has consistently engaged with US authorities through diplomatic channels since the issue emerged and expects a final agreement on reciprocal tariff arrangements in the near future. Discussions are also underway on the possibility of a uniform 10% tariff framework under ongoing US trade policy revisions, he said.
Sri Lanka “fully supports global standards against forced labour and has already established legal safeguards to ensure compliance within its supply chains,” the minister said. A special committee chaired by the Secretary to the Ministry of Trade and operating with Cabinet approval is coordinating Sri Lanka’s response and engagement with US authorities. The committee is working to ensure no products linked to forced labour enter Sri Lanka’s export supply chains, and relevant information is being shared with US investigative bodies.
Other countries swept into the same US review include India, Bangladesh, Indonesia, Malaysia, Pakistan, the Philippines, Thailand, Australia, China, Canada, the European Union, Israel, Japan and the United Kingdom, reflecting the global nature of modern supply networks. The 12.5% band, if confirmed, would land on top of the existing US reciprocal tariff framework that took effect across Sri Lankan exports earlier in the cycle, tightening the pricing pressure on apparel and rubber-product exporters who depend on the US market.
Source: Ada Derana.
