ECONOMYNEXT – Sri Lanka is continuing discussions with the US on tariffs after a negotiation team returned from a second round of in-person talks in Washington, Deputy Minister Harshana Suriyapperuma said.
Sri Lanka was in the first set of the countries that offered to discuss with the US after a 44 percent tariff was slapped on the country which has since been limited to 10 percent for three months.
“There are areas that the US wants Sri Lanka to focus on, there are areas that Sri Lanka wants input and assistance from the US, particularly given the situation that Sri Lanka is in as a country within the IMF program,” Minister Suriyapperuma said.
“So, we have discussed the challenges and they have acknowledged the situation that Sri Lanka is in. We believe it will lead to a good outcome.”
Sri Lanka is scrambling to avoid a situation where it is hit with a different tariff from other competing countries particularly in apparel and rubber for which the US is a top market and competitors are in South Asia, with much lower rates and East Asia also with slightly lower ones.
Sri Lanka is in ‘regular communications’ with the Office of the US Trade Representative, Minister Suriyapperuma said.
“I believe Sri Lanka is ahead of some of the countries who are on the negotiating table and we have been assisted by the USTR team,” he said.
“It was a very cordial discussion.”
US President Donald Trump slammed the tariffs without Congressional approval, citing a law on national emergencies, to reduce trade deficits.
However some US businesses have gone to court saying the tariffs were illegal, and won a decision at a lower court which is being appealed.
After Trump, the practice of issuing executive orders, especially on tariffs without Congressional approval.
READ MORE : Sorry, Mr. President: If You Want Tariffs, You Need Congress
In Sri Lanka also taxing by midnight gazette is also questioned for going against the Magna Carta and parliamentary control of public finances.
The Magna Carta ended the practice of imposing taxes by a decree of the King, called the Royal Prerogative, and brought in the concept of ‘taxation by consent’ and the birth of Western parliamentarism. (Colombo/June03/2025)