Ceylon Chamber Welcomes Reduction in US Labour-Related Tariff

The Ceylon Chamber of Commerce welcomes the positive development in the reduction of the labour-related tariff imposed on Sri Lankan exports to the United States, from 12.5% to 10%, following sustained engagement between Sri Lankan authorities and their counterparts in the United States.

This outcome is an encouraging step forward for Sri Lanka’s export sector and reflects the value of constructive dialogue, evidence-based advocacy, and proactive engagement with international trading partners. The reduction will provide some relief to exporters, navigating a highly competitive and uncertain global marketplace while supporting Sri Lanka’s broader efforts to maintain and expand market access.

In our previous statement on the matter in early June, the Chamber had expressed concern regarding the potential impact of the proposed labour-related tariff measures on Sri Lanka’s trade competitiveness and urged urgent engagement with relevant stakeholders. The Chamber therefore commends the progress achieved by the negotiation team and appreciates the engagement with the private sector, which enabled industry perspectives and concerns to be effectively conveyed during discussions.

While welcoming this encouraging outcome, the Chamber emphasizes the importance of continuing constructive dialogue with the United States to secure a longer-term framework that minimizes uncertainty for exporters and promotes stable trade relations. The Chamber looks forward to continuing its collaboration with the Government and other stakeholders to support these efforts and further enhance Sri Lanka’s export competitiveness.