The Hon. Wasantha Samarasinghe

¶ 01 6. Recent US tariff actions towards some countries in the region make clear that zero-duty access is not being granted automatically. Under the US’s 31 July 2025 Executive framework on selected ASEAN countries, reciprocal tariff rates were set: Thailand and Cambodia are subject to 19% rates; Lao PDR to 40%; Sri Lanka to 20%. These rates reflect country-specific assessments rather than automatic preferences.

¶ 02 ASEAN members have deeper economic integration and robust trade disciplines through plurilateral/regional agreements like RCEP, aligning domestic frameworks and thus enjoying better positioning in talks. Compared to an initial 44% indicative rate, Sri Lanka’s 20% rate reflects progress achieved through discussions. Even if Sri Lanka cannot obtain the higher preferential access some ASEAN members enjoy, we have made meaningful progress to improve market access for our exports.

¶ 03 Sri Lanka–US trade has a structural imbalance: Sri Lanka imports considerably more from the US than it exports. Current discussions focus on areas and products to reduce imbalances while safeguarding economic needs and priorities. [Annexed trade tables for 2022–2024 on exports and imports by HS chapters are tabled. 2025 data are being compiled.]

¶ 04 - Annex I tabled: Major exports to USA (2022–2024). - Annex on major imports from USA (2022–2024) tabled.

¶ 05 Further parts (1, 2, 4 and 8) of the Answer are tabled.

¶ 06 - Rest of the Answer tabled:

¶ 07 Talks with the US cover a reciprocal tariff agreement within a broader framework, with substantial convergence on many provisions. Both sides aim to progress as early as possible, but no firm timeline or target date (including within March 2026) has been agreed yet. Discussions are within government-to-government confidentiality; detailed drafts/binding specifics cannot be disclosed at this stage. Talks span goods tariffs as well as services, investment, digital trade, labour-related standards and other strategic areas. The Government proceeds carefully, safeguarding policy space and national interests, and will duly update Parliament as appropriate. Proper procedures will be followed prior to and after any agreement.

¶ 08 8. Sri Lanka fully recognizes the need to protect vulnerable sectors—agriculture, SMEs, apparel, fisheries—in any future engagement. No final understandings have been reached as talks are ongoing. Sri Lanka’s approach emphasizes established safeguards—negative lists, phased liberalization schedules, tariff-rate quotas as needed—consistent with long-standing trade policy practice, and reliance on domestic trade remedy laws (Safeguards; Anti-Dumping and Countervailing) independent of any agreement.

¶ 09 Given ongoing talks, a formal economic or state impact assessment has not yet been presented to Parliament. Potential economic and regional impacts are being continuously monitored to ensure any outcome aligns with national development goals, priorities and regulatory sovereignty.