The Hon. S.M. Marikkar

¶ 01 Hon. Deputy Chairperson, with the U.S. export tariff now imposed, mere blame will not help. Two months ago, the Leader of the Opposition warned here that such a tariff was coming and urged technical engagement. Nothing was done. We must act now.

¶ 02 India’s External Affairs Minister, Piyush Goyal, anticipating around a 50% duty, immediately engaged the U.S.; India now faces only 26%. Among countries hit hardest, Sri Lanka is in the top five, along with China, Vietnam, and Cambodia—mostly under communist rule. We cannot pretend we are unaffected, nor make flippant comparisons. This requires state‑level technical negotiations.

¶ 03 The U.S. is our largest export destination—around 23% of exports. Over the last five years, we exported roughly USD 3 billion annually to the U.S. Our imports from the U.S. are only about USD 500 million—a large trade surplus there. If apparel exports are hit, over 300,000 jobs are at risk. In 2022, apparel brought USD 2,408 million; no other category exceeded USD 500 million. The value of apparel to our economy is clear.

¶ 04 Hon. Harsha de Silva also noted the risk to GSP+. In 2023, we exported USD 2,711 million to the EU; in the first eleven months of 2024, USD 2,739 million. If we lose the U.S. market and GSP+ in Europe, can this economy cope? This is not about Government vs Opposition; it is a national issue. In the 2022 crisis, even with exports, the country went bankrupt. If we now lose exports, what then?

¶ 05 At minimum, we must comply with the EU’s 27 conventions to retain GSP+. These are known; the Government has had over six months. Do the work before the evaluators arrive, not after.

¶ 06 On the youth detained at the Colombo luxury mall: if there were proper charges, why release him only after public pressure and after the President’s signed order circulated? If the charges were wrong, who is accountable for his detention? Those in Government once vehemently opposed the PTA; yet months pass without forming a new committee or law, raising doubts about intent.

¶ 07 We reiterate: we cannot afford to lose U.S. access and GSP+. Though we have no external debt service in 2028, we still need to borrow USD 7.3 billion this year to cover the deficit even if revenues meet targets; more next year. Therefore, we welcome the Government’s pragmatic shift on India and other FTAs. Proceed quickly with Thailand, Pakistan, and India agreements. Also note that if India and Bangladesh face lower U.S. tariffs than we do, our apparel industry could relocate there, costing us dollars and jobs. Act seriously and urgently. Thank you.