ECONOMYNEXT – Sri Lanka’s Joint Apparel Association Forum of exporters have called for parity with other manufacturing nations in negotiations with the US, as the island attempts to reduce a 44 percent Trump tariff.

“…[W]e are encouraged by the Government’s commitment to address key trade barriers and seek solutions that safeguard market access and competitiveness for Sri Lankan exports,” the JAAF said in a statement.

“We trust that any future tariff arrangements agreed upon will reflect parity with those offered to other apparel-producing nations, ensuring a level playing field for Sri Lankan exporters.

“In this context, we respectfully urge both governments to consider the long-term sustenance of Sri Lanka’s apparel industry—an industry that remains a key pillar of the national economy and a global leader in ethical manufacturing.”

The full statement is reproduced below:

JAAF welcomes Government efforts in U.S. trade dialogue, Seeks parity of tariff for Apparel exports

The Joint Apparel Association Forum (JAAF) welcomes the Government of Sri Lanka’s proactive engagement with the Office of the United States Trade Representative (USTR) in Washington D.C., and extends its appreciation to His Excellency President Anura Kumara Dissanayake and the delegation for prioritizing discussions that advance equitable and mutually beneficial trade relations between Sri Lanka and the United States.

The U.S. continues to be a vital and long-standing trading partner for Sri Lanka’s apparel industry. As an industry that supports 350,000 employees directly, and a further 700,000 livelihoods across the country, we are encouraged by the Government’s commitment to address key trade barriers and seek solutions that safeguard market access and competitiveness for Sri Lankan exports.

We trust that any future tariff arrangements agreed upon will reflect parity with those offered to other apparel-producing nations, ensuring a level playing field for Sri Lankan exporters. In this context, we respectfully urge both governments to consider the long-term sustenance of Sri Lanka’s apparel industry—an industry that remains a key pillar of the national economy and a global leader in ethical manufacturing.

As discussions progress towards a potential bilateral trade agreement, we take this opportunity to reiterate that Sri Lanka’s apparel sector operates with full traceability, transparency and sustainability, in line with internationally accepted ethical standards and that this should be recognized in setting a special concessionary tariff. We remain confident that Sri Lanka’s value proposition as a responsible sourcing destination is both credible and competitive.
We look forward to continued dialogue between the two governments and express our full support for a future-oriented agreement that will enhance trade, attract investment, and contribute to shared prosperity.

ECONOMYNEXT –Foreign investors bought 11 million dollars worth Sri Lanka government securities in the week ended on April 24, the Central Bank data showed, after they dumped the bonds in the previous two weeks amid jitters over U.S. President Donald Trump’s tariff.

The rupee has fallen slightly since Trump’s declaration while global investors have been shifting to safe-havens like gold.

Sri Lanka saw 3.33 billion rupees ($11.1 at 1 US dollar = 300 LKR) worth outflows from the government securities in the week ended on April 24 after suffering an outflow of 10.1 billion rupees in the previous two weeks.

U.S. stocks have been on the rise this week as investors watched for signs of progress in the U.S.-China tariff stand-off.

Before the outflows started, the island nation had enjoyed a total inflow of 28.6 billion rupees ($95.6 million) since December 26 last year, the data showed.

The dollar and U.S. Treasuries have taken a beating as Trump’s tariffs, plus a 245 percent duty on China, took effect, while China retaliated. In contrast, safe-haven favourites such as gold continue to pull in cash.

The island nation witnessed total inflows of 29.9 billion rupees into treasury bonds and bills in the 15 weeks through December 26, the official data showed.

The value of government securities held by foreign investors was at 69,262 million rupees by December 26.

Sri Lanka’s deflationary policies have helped to see inflows amid curtailed imports, Analysts have said.

The country witnessed foreign outflows worth 48.2 billion rupees in 2024 with 66 percent or 78.1 billion rupees worth outflow from the government securities in the first nine months of last year. (Colombo/April 26/2025)

ECONOMYNEXT – A monitoring mission to from the European Union will be in Sri Lanka to assess progress meeting conditions linked to granting GSP+ preferences to the island, the Delegation for EU said in statement.

The mission will be in Sri Lanka from April 28 to May 07, to “take stock of progress on the fulfillment of conditions linked to the granting of GSP+ trade preferences.”

“This is part of the regular biannual monitoring to which the Government of Sri Lanka has committed in order to benefit from GSP+,” the statement said.

“Sri Lanka is one among eight low- or lower-middle income countries benefitting from the GSP+.

“This is a special incentive arrangement for Sustainable Development and Good Governance that is open for vulnerable developing countries that have ratified 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance.

“The effective implementation of these 27 conventions is monitored with biannual missions and reports.”

The EU has raised concerns over Sri Lanka Prevention of Terrorism Act, which allows to long periods of detention without trial.

The GSP+ allows duty free access to Sri Lanka exports, especially apparel to EU nations. The mission is arriving as US President Donald Trump has threatened 44 percent tariffs on Sri Lanka products.
(Colombo/Apr25/2025)