The President made this statement while addressing Parliament during a parliamentary debate on the country’s economic situation.

He further stated that certain agreements had been reached during the discussions held so far, and as a result, the tariff rate has been reduced to 20%.

“We get 44% based on our Trade deficit. That is their principle. We consider reducing it from 44% to 20% as an important outcome of the discussions and the agreement between them and us,” President Dissanayake noted.

He also added, “if you were expecting a collapse of the economy based on the U.S. tax policy that is over now. There is still no final agreement. We had 20%. We are still trying, and we have started discussions, to see if we can reduce that 20%. That is the decision we have to make as a country.”

Meanwhile, the President also refuted rumours of restrictions on vehicle imports, assuring that there will be no change in the importation policy. 

He also stated that there will be no tax increases in the immediate future.

Speaking further in this regard, the President said that, as of yesterday (06), letters of credit worth USD 1,267 million had been opened for vehicle imports, and it is projected that letters of credit worth between USD 1,500–1,800 million will be opened by the end of this year.

He further emphasized that there will be no increase in taxes on vehicles in the future.