Harsha urges govt to provide relief to exporters amidst US tariffs

The government must provide urgent relief to exporters on the backdrop of the reciprocal tariffs imposed by United States President Donald Trump, according to the Chairman of the Committee on Public Finance, Parliamentarian Harsha de Silva. 

MP de Silva while acknowledging the complexities that could arise following the announcement urged the government to introduce urgent relief measures until the matter is resolved. He also urged the government to suspend next week’s scheduled amendment of the Simplified Value Added Tax (SVAT) removal for exporters. 

Despite being a key figure of the opposition, MP Harsha de Silva offered to help the incumbent government led by President Anura Kumara Dissanayake to help figure out a way forward. 

On Wednesday, US President Donald Trump announced a sweeping set of reciprocal tariffs, imposing a baseline 10 per cent tax on all imports and significantly higher rates on dozens of countries with which the US runs trade deficits. Sri Lanka is facing one of the steepest tariffs among countries amounting 44 per cent. 

Following the announcement, President Anura Kumara Dissanayake appointed a committee to conduct an in-depth study on potential issues that may arise due to the new reciprocal tariff system and to submit recommendations to the government. 

The committee comprises key economic policymakers and industry experts, including the Secretary to the Ministry of Finance, the Governor of the Central Bank of Sri Lanka, the Chairman of the Board of Investment (BOI), the Chairman of the Export Development Board (EDB), and the Director General of Economic Affairs at the Ministry of Foreign Affairs. 

Additionally, Senior Economic Advisor to the President Duminda Hulangamuwa, Chief Economic Policy Advisor of the Ceylon Chamber of Commerce Shiran Fernando, and business figures Ashroff Omar, Sharad Amalean, and Saif Jafferjee have also been appointed to the committee. 

The President’s Media Division said the initiative aims to assess challenges arising from the US tariff adjustments and propose strategic measures to mitigate any adverse effects on Sri Lanka’s economy and trade. 

The committee is expected to submit its findings and recommendations to the government in the coming weeks. 

Moreover, Minister of Labour and Deputy Minister of Economic Development Dr. Anil Jayantha Fernando said Sri Lanka will hold talks and negotiate the new trade tariffs imposed by the United States on the country’s exports before April 09. 

Issuing a clarification on the 44 per cent trade tariffs imposed on Sri Lanka as part of US President Donald Trump’s decision to impose reciprocal tariffs with a baseline 10 per cent tax on all imports and significantly higher rates on dozens of countries, the Minister stated that the government had prior knowledge of the situation, but awaited the US policy decision before taking action.