The Central Bank of Sri Lanka has recommended to the government that it is essential to review the tariff rates imposed by this country on goods sent to foreign markets and those imposed by those countries on goods in our country.
The latest Economic Outlook Report (2024) of the Central Bank of Sri Lanka has recommended this. The Central Bank of Sri Lanka says that any tariff imposed by the US on Sri Lankan exports can have a major impact on the country’s export sector and therefore risks should be considered for prompt intervention.
The Central Bank also says that it is essential to review the tariff structures, especially considering reciprocal tariffs (tariffs applied between countries).
The Central Bank has also pointed out in the report that the impact that the US government’s tariff changes may have on Sri Lanka’s other trading partner countries may also have an adverse impact on Sri Lanka’s exports.
The report also points out that the potential slowdown in the global economy due to the US government’s tariff policy changes could also affect remittances received by Sri Lanka from foreign workers, and further emphasizes that due to this uncertain global environment, it is essential to actively implement free trade agreements and increase policy preparedness to use opportunities for trade diversion to Sri Lanka’s advantage.
Shyam Nuwan Ganewatta