COLOMBO, Jul 11 (NNN-XINHUA) – Sri Lanka will continue talks with U.S. officials, to secure further reductions in tariffs, a senior official said, yesterday.
Central Bank Governor, Nandalal Weerasinghe, said at a press conference that, the United States has reduced tariffs on Sri Lankan exports from 44 percent to 30 percent.
He noted that, the current 10 percent tax rate will remain in place until Aug 1, and the government will use this period to seek an even lower tariff.
Weerasinghe explained that, at 30 percent, Sri Lanka faces a lower tax rate than many of its competitors in the U.S. market. However, he acknowledged that, Sri Lankan exports, like those from other countries, will still feel the impact of the new taxes.
He added, the government is working to diversify export destinations, but it will take time.
Sri Lanka’s GDP could decline by up to 1.5 percent, if the United States reinstates a 44-percent tariff on Sri Lankan exports, and lowers tariffs on competitor trading partners, according to a recent report released by the International Monetary Fund.– NNN-XINHUA
