Sri Lanka’s apparel manufacturing industry warned on Thursday that sweeping US tariffs will disrupt the island’s largest export sector and place thousands of jobs at risk.
‘The tariff level is extremely high relative to our regional competitors,’ said Yohan Lawrence, head of the Joint Apparel Association Forum (JAAF), referring to a 44 per cent tariff imposed by US president Donald Trump on Sri Lankan goods.
In comparison, neighbouring India was hit with a lower 27 per cent and Bangladesh 37 per cent. Both are Sri Lanka’s competitors in the garment industry.
JAAF said in a statement the tariff hike could ‘significantly disrupt’ the garment industry and threatened ‘thousands of jobs’.
‘Our focus now is on engagement, agility, and ensuring Sri Lanka remains a trusted sourcing destination,’ Lawrence said, adding that the government had appointed a committee to study the impact of the new tariffs.
Sri Lanka exported $3.0 billion worth of goods to the United States last year, while importing goods and services valued at $368 million, creating a huge trade surplus in favour of Colombo.
About two-thirds of Sri Lanka’s exports to the United States are clothing.