The Free Trade Zone Manufacturers Association (FTZMA) has warned that the proposed tariffs imposed by US President Donald Trump could have a huge impact on the Sri Lankan economy, with up to 50,000 jobs lost in the initial phase.
The association also points out that this could damage the country’s competitiveness across South and Southeast Asia.
Addressing the media, the association’s chairman, Dhammika Fernando, said that about 20% of Sri Lanka’s total trade revenue, especially export revenue, could be at risk due to these tariffs.
He further said that according to current data, about 50,000 jobs could be lost.
The United States is Sri Lanka’s largest export market, with the garment sector accounting for about 20-25% of its garment and textile exports to the US.
The proposed tariffs, part of US President Donald Trump’s retaliatory trade strategy, could seriously undermine the competitiveness of Sri Lankan goods, he says. Trump’s new tax policy proposes a 44% tax on imports from Sri Lanka, which economic analysts say will drive up the prices of Sri Lankan products and push them out of the US market.