FINANCIAL CHRONICLE – The Ministry of Finance, Planning and Economic Development of Sri Lanka has announced that the United States has reduced its proposed additional Section 301 tariff on Sri Lankan exports from 12.5 percent to 10 percent. This adjustment is expected to yield favorable results for local exporters.
The new tariff rate follows Sri Lanka’s recent initiative to impose an import ban on products made using forced labor. The decreased duty provides Sri Lanka with a competitive advantage over other countries that are subject to the standard 12.5 percent tariff due to non-compliance.
The Ministry remarked that this development is beneficial for exporters and underscores Sri Lanka’s ongoing dedication to upholding fair trade, responsible business practices, and established international labor standards.
Furthermore, the Ministry noted that the adjusted tariff framework enhances Sri Lanka’s position in its key export market and conveys economic stability to international buyers and investors.
According to the Ministry, “This revision boosts the competitiveness of Sri Lankan exports within the US market and sends a positive message to investors and buyers regarding the nation’s commitment to sustainable economic reforms.”
This change follows the U.S. government’s initiation of Section 301 investigations into 60 countries concerning forced labor practices. Although the overall effective tariffs on Sri Lankan apparel will still average around 26.5 percent, the reduction to 10 percent helps alleviate potential adverse impacts on trade.
The United States remains the largest single export market for Sri Lanka, accounting for more than 20 percent of the country’s total merchandise exports. (Colombo/Jul24/2026)
