The 44% tariff imposed by the U.S. on Sri Lankan imports is a major setback, especially for the apparel industry, which contributes nearly 50% of exports to the U.S. This will make Sri Lankan goods less competitive, leading to reduced orders, job losses, and slower economic growth
With fewer exports, foreign exchange inflows will drop, putting pressure on the rupee and increasing inflation. Import costs will rise, making everyday goods more expensive. Additionally, Sri Lankaโs trade surplus with the U.S. will shrink, further straining economic stability
To counter this, Sri Lanka must diversify export markets, strengthen trade agreements, and focus on value-added exports. Quick action is needed to prevent a major economic slowdown
