SL to present progress on trade negotiations

The Sri Lankan Government is to present its progress on trade negotiations with the United States Trade Representative in two weeks time, Deputy Minister of Trade and Commerce R.M. Jayawardena informed parliament yesterday (6), responding to a question posed by Member of Parliament Ravi Karunanayake.

“What is the current status of the trade negotiations with the United States, and have any timelines, draft frameworks or commitments being agreed upon with the target of March 2026?,” Karunanayake had queried officials of the government, emphasizing the growing attention to trade negotiations with the US, owing to United States President Donald Trump’s recent social media posts.

On Monday, the premier took to Truth Social, an American social media platform, to state that the US stands to benefit $ 600 billion from the application of its reciprocal tariffs. “We have taken in, and will soon be receiving, more than $ 600 billion in tariffs, but the fake news media refuses to talk about it because they hate and disrespect our country, and want to interfere with the upcoming tariff decision, one of the most important ever, of the United States Supreme Court.”

Karunanayake in parliament highlighted the need to finalise Sri Lanka’s negotiations with the US on favourable terms, considering the adverse impact cyclone Ditwah has had on the economy. “Public statements by United States President Doland Trump indicate an intention to conclude outstanding trade disputes and finalise bilateral trade agreements with partner countries including Sri Lanka by March 2026.”

“These negotiations assume heightened significance following the devastation caused by Cyclone Ditwah, which has severely affected Sri Lanka’s agriculture, industry, infrastructure and the export capacity, thereby impacting our economic resilience and negotiating position.”

Sri Lanka’s total export value to the US in 2024 was $ 2.9 billion, according to data published by the Export Development Board (EDB). While total export value to the US in 2025 is yet to be released, between January and October of 2025, published data indicates that the US accounted for 23% of the country’s merchandise exports. This makes the US the single largest export market for Sri Lanka.

According to the Monthly Treasury Statement for 2025 published by the US federal Government, the US Government had collected $ 195 billion in customs duties in the 2025 fiscal year, up by 250% from the previous fiscal year of 2024. In November 2025, the Congressional Budget office stated that expected tariff revenue is to reduce deficits by $ 3 trillion in the next ten years. This estimate was down from an earlier projection of $ 4 trillion, stated in August.

Effective from August 07 2025, Sri Lanka was levelled a 20% country specific reciprocal tariff, on top a 10% universal tariff. “What is the scope of the proposed agreement? Does it involve only tariff concessions or does it also cover services, investment, digital trade, labour and other strategic obligations?,” Karunayake continued.

“In view of the economic devastation caused by Cyclone Ditwah, has the government sought special concessions, preferential access, or relief based tariff treatment from the United States? This was given to Cambodia, Thailand and Laos when they signed the agreement. These are practical experiences that Sri Lanka must seize.” 

Source - The Morning