The Hon. Ravi Karunanayake

¶ 01 Hon. Speaker, I would like to ask the following Question from the Minister of Finance, Planning and Economic Development under Standing Order No. 27(2).

¶ 02 The export of Sri Lanka’s textiles, apparels and other general items is a key driver of economic growth with a projected target of US Dollars 8 to 10 billion by 2030. A significant portion of these exports is directed towards the United States, a major trading partner. However, US President Donald Trump is pursuing a policy of deglobalization, using tariffs as a strategic tool to regulate trade, particularly targeting countries with which the US has a trade deficit. While the previous US administrations adopted a different approach for developing countries, the possibility of a return to protectionist policies in the future remains a concern under the new Trump administration.

¶ 03 In this context, could the Hon. Minister inform this House,

¶ 04 1. whether the Government has conducted an assessment on how the deglobalization policies and potential tariff hikes by the US could impact on Sri Lanka's general, textile and apparel exports;

¶ 05 2. whether we cannot step up our negotiating skills, especially as a country that is very precariously coming out of bankruptcy, and negotiate for a special accommodation from President Trump and his Government;

¶ 06 3. as to what steps the Government has taken to retain and expand market access for Sri Lankan exports in the US under the existing Generalized System of Preferences (GSP) or alternative trade arrangements; and

¶ 07 4. whether Sri Lanka has engaged in any bilateral negotiations with the US Trade Representative or other US authorities to mitigate tariff risks and ensure that Sri Lanka remains competitive in the US market;

¶ 08 5. considering the uncertainty related to United States trade policy, what measures are being implemented by the Government to diversify export markets and reduce Sri Lanka’s dependence on the US as a principal buyer of textiles and apparel;

¶ 09 6. in view of global protectionist trends, whether the Government is exploring foreign direct investment (FDI) opportunities and trade agreements with other countries to strengthen Sri Lanka’s apparel industry;

¶ 10 Hon. Speaker, 1.2 million people are directly employed in that industry.

¶ 11 7. whether the Government will assure Parliament that it will brief the House on potential risks emerging from its trade strategy and the countermeasures it intends to adopt;

¶ 12 8. given that maintaining low production costs in Sri Lanka would keep our apparel exports competitive in the US market even with higher tariffs, whether the Government is conducting relevant consultations with the sector;

¶ 13 9. while deglobalization and tariffs pose risks, they can also create opportunities for strategic realignment; if there are potential advantages, what pathways are being examined to leverage them while minimizing negative impacts;

¶ 14 10. how the Government can facilitate such strategic adjustments through policy interventions and support programs;

¶ 15 11. what measures the Government can take to support the affected industries and the 1.2 million-strong workforce, considering the potential tariff increases; and

¶ 16 12. how the Government intends to leverage Sri Lanka’s geographic location to attract US investors so that Sri Lanka becomes an attractive FDI destination; what actions are envisaged in this regard?

¶ 17 Thank you, Hon. Speaker.