Ceylon Chamber Expresses Concern Over New US Labour-Related Tariffs and Calls for Urgent Engagement
The Ceylon Chamber of Commerce is concerned by the announcement of new labour-related tariffs by the United States on several countries, including a proposed 12.5% tariff on exports from Sri Lanka. This development comes at a time when Sri Lanka was continuing discussions with the US following the suspension of the previously announced reciprocal tariffs and was seeking to secure a more favourable trading arrangement.
The imposition of an additional tariff on Sri Lankan exports risks undermining the competitiveness of key export sectors compared to other countries, which are at a lower rate of 10%. At a time when Sri Lanka is working to accelerate export growth, attract investment, and create employment opportunities, any increase in trade barriers presents a significant challenge. At present, key goods exports such as Apparel and Tea are down by 7% and 6% respectively in the first four months of 2026.
Sri Lanka has built a strong reputation as a responsible sourcing destination, with many industries adhering to high labour, environmental, and governance standards. The country has also made substantial progress in strengthening regulatory frameworks and promoting ethical business practices.
The Ceylon Chamber therefore requests the relevant authorities to engage proactively and at the highest levels with the United States to better understand the basis for the tariff and to present Sri Lanka’s case. Every effort should be made to secure a reduction in the proposed tariff and, ultimately, to seek its removal altogether. It is important that Sri Lanka seeks to return to the lower tariff band while continuing discussions towards achieving a more competitive and predictable trading environment.
Given the importance of the US market to Sri Lankan exports, timely engagement and clear communication on the way forward will be critical in providing confidence to exporters and investors. The Ceylon Chamber stands ready to support these efforts and work collaboratively with all stakeholders to safeguard Sri Lanka’s export competitiveness and long-term economic interests.