10th Parliament· 154 sittings on record · 30,475 speeches · latest 10 June 2026

The Hon. Ravi Karunanayake

New Democratic Front· National List· 17 June 2025 ·Adjournment: Adjournment Debate: Trade Tariffs and Iran-Israel Conflict Impact

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Hon. Ravi Karunanayake raised a series of questions on trade policy, focusing on the impact of the United States’ new tariff regime, the status of Sri Lanka’s discussions with US officials, and measures to protect key exports such as apparel, rubber products and tea. He also sought information on market diversification, reciprocal trade policy, and whether economic analyses on inflation, supply chains and employment would be presented to Parliament. He further questioned the Government on EU GSP Plus negotiations, including stakeholder engagement, labour law reforms, the PTA, the Online Safety Act, and contingency plans if preferences are lost. He also asked whether Sri Lanka is pursuing a bilateral or protective trade arrangement with the United Kingdom in response to the UK-India FTA and potential risks to Sri Lankan exporters.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Hon. Deputy Chairperson of Committees, to save time I will pose only the questions. I will speak during the debate on other matters. I raised three clusters relating to the US trade tariff issue:

¶ 02 1. Based on President Trump’s new tax regime, can the Hon. Minister inform this House of the outcome of discussions held between Sri Lankan representatives and the US officials?

¶ 03 2. What concrete steps is the Government taking to secure priority access in the US market—especially for apparel, rubber products and tea—in the wake of global security concerns?

¶ 04 3. Based on this trade environment, is the Government presenting proposed export pathways to diversify markets and rescue at-risk markets?

¶ 05 4. Is the Government pursuing a reciprocal trade policy to protect Sri Lankan producers from asymmetrical trade agreements dictated by large economies?

¶ 06 5. Has an economic analysis been done on potential domestic inflation, supply chain disruptions and job losses that could arise in Sri Lanka from global trade issues?

¶ 07 6. Will such analysis be presented to Parliament? Under bilateral agreements, regional blocs and WTO mechanisms, what measures are being taken to protect the economy from the impact of this tax transmission?

¶ 08 Then, the second part relates to European Union GSP Plus negotiations:

¶ 09 1. What measures have been taken to ensure transparency and stakeholder engagement—especially with trade unions, exporters and civil society—during the two rounds of GSP Plus negotiations? What specific labour law reforms has the Government agreed to or been asked to undertake?

¶ 10 2. What is the Government’s official stance on the Prevention of Terrorism Act (PTA)? Does it intend to repeal or substantially amend it to comply with international human rights standards?

¶ 11 3. What assessments have been conducted on the impact of potential GSP Plus changes on SMEs, especially in apparel, fisheries and agri-based sectors?

¶ 12 4. Given concerns about the recently enacted Online Safety Act and its potential effect on freedom of expression, media independence and digital rights, will the Government consider reviewing or amending the Act to include safeguards? Has stakeholder consultation taken place?

¶ 13 5. If GSP Plus benefits are suspended or negotiations collapse, what is the Government’s contingency plan to protect export industries and employment?

¶ 14 Third, regarding free trade with the United Kingdom, given the UK-India FTA:

¶ 15 1. Has the Government initiated or considered launching negotiations for a bilateral trade or market access agreement with the UK to ensure competitiveness for Sri Lankan exporters?

¶ 16 2. Why did Sri Lanka not proactively engage in trade discussions with the UK, especially when the India-UK FTA negotiations were publicly known and ongoing for nearly a decade?

¶ 17 3. Given our longstanding ties with the UK and shared Commonwealth membership, why has Sri Lanka not sought “priority country” status to expedite a Trade Agreement with the UK?

¶ 18 4. As Sri Lanka emerges from economic bankruptcy, is the Government exploring the possibility of securing a special protective trade arrangement with the UK?

¶ 19 5. Does Sri Lanka have a data-driven strategy to assess and respond to potential market erosion caused by the India-UK FTA? How will intelligence be used to protect and promote our exports to the UK market?

¶ 20 Thank you.

Provenance

Source
Hansard, Tuesday, 17 June 2025 ·No. 1750929357043199 ·English daily/uncorrected Hansard
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Cite as: The Hon. Ravi Karunanayake. 10th Parliament, Parliament of Sri Lanka. Hansard, 17 June 2025. No. 1750929357043199. Politick, https://staging.politick.io/lk/speeches/14738