Sri Lanka will strengthen customs screening to identify imported goods made with forced labour and implement international labour standards in a bid to avoid being hit by new United States tariffs on its exports, Labour Minister and Deputy Finance Minister Prof. Anil Jayantha Fernando told Reuters in Colombo.
“Sri Lanka already has good labour practices within the country. There is already a legal framework. Sri Lanka will take measures to eliminate concerns over child labour and forced labour,” Fernando said.
Colombo is one of 60 economies facing proposed US tariffs of up to 12.5 percent that could take effect next month under the Office of the United States Trade Representative’s Section 301 forced-labour finding announced earlier in June. Sri Lanka’s 12.5 percent band is higher than competitor apparel exporters Bangladesh and Pakistan, both placed in the 10 percent group. The differential has been the central point of concern for the Joint Apparel Association Forum, which has previously warned about Vietnam’s lower tariff position.
The apparel industry, Sri Lanka’s second-largest foreign exchange earner, recorded US$5 billion in exports last year and employs around 300,000 workers. The US is Sri Lanka’s largest export market, accounting for roughly $3 billion in mostly apparel shipments. Total exports dipped 7.4 percent to $1.53 billion in the first four months of 2026, government data shows.
Two measures form the core of Colombo’s response. Customs screening will be upgraded to address Washington’s concerns over imports that may have entered Sri Lankan supply chains using forced labour — a process flagged in the USTR’s report on cotton supply chains potentially circumventing the Uyghur Forced Labor Prevention Act through intermediary manufacturers. Sri Lanka will also formally adopt ILO Convention C190, the first international treaty recognising the universal right to work free from violence and harassment, which Colombo ratified in April.
Talks with the USTR are ongoing, Fernando said, but Sri Lanka does not yet have plans to visit the United States to meet US trade officials. The minister had earlier dismissed as “false and misleading” suggestions that the 12.5 percent tariff was already in force, framing the measures as part of preliminary investigations that could still be revised through engagement.
Sources: Govt. to introduce new customs, labour rules to avoid 12.5% US tariffs — Ada Derana (Reuters), June 18 · Sri Lanka plans new customs policies to avoid 12.5% US tariffs — Newswire, June 18.
