Home » President appeals to Washington over tariff dispute amid trade deficit concerns

President appeals to Washington over tariff dispute amid trade deficit concerns

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April 08, Colombo (LNW): Sri Lanka has formally engaged the United States government over the economic fallout from newly introduced tariffs, with President Anura Kumara Dissanayake directly reaching out to President Donald Trump in a bid to address the strain these measures have placed on bilateral trade.

The move was disclosed in Parliament by Deputy Minister of Economic Development Prof. Anil Jayantha Fernando, who confirmed that the White House had acknowledged receipt of the correspondence.

The intervention comes as Sri Lanka grapples with an increasingly lopsided trade relationship with the United States, its largest single-country export destination.

According to Deputy Minister Fernando, the island nation is currently facing a trade imbalance with the US that hovers around 88 per cent, a figure based on trends observed over the past five years.

Responding to a parliamentary query raised by New Democratic Front MP Ravi Karunanayake, the Deputy Minister said that apparel and food products, along with three other primary export categories, make up the bulk of Sri Lankan shipments to the US.

These goods are now subject to a range of new tariffs and para-tariffs, introduced as part of Washington’s efforts to recalibrate its trade relationships based on persistent deficits.

The government, Fernando noted, is seeking to address the situation through both direct diplomacy and strategic policy interventions aimed at mitigating the potential harm to domestic industries.

“This is not an issue isolated to our country alone,” he said, adding that a common formula had been used by the US to assess trade deficit-related tariffs across the board, which even regional powers like India have been unable to circumvent.

As part of ongoing efforts to negotiate relief, Sri Lanka’s Ambassador in Washington has been engaged in continuous dialogue with senior officials from the Trump administration since early February.

In addition, Fernando confirmed that another round of high-level discussions was scheduled for the evening of 8 April with representatives from the Office of the United States Trade Representative.

He stressed that the new administration remains committed to addressing the wider implications of these tariffs. Measures taken so far include assessments of affected sectors, support for local manufacturers, and potential diversification of trade partners to reduce dependency on any single market.

Although no immediate concessions have yet been announced, the government insists that diplomatic pressure and pragmatic negotiations will continue in parallel with internal economic adjustments.

These include a review of export structures, identifying vulnerable sectors, and introducing support frameworks to cushion the impact on small and medium-sized enterprises.

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