U.S. Lowers Tariffs on Sri Lankan Exports

Who’s Taking Credit?

In what some officials are touting as a "major diplomatic win," the United States has decided to reduce tariffs on Sri Lankan exports — from a punitive 44% to a slightly less punishing 30% — starting August 1. The announcement came via a corrected letter from U.S. President Donald Trump to Sri Lankan President Anura Kumara Dissanayake, after the first version, rather memorably, addressed him as “Aruna.”

“An honest typo,” noted a U.S. State Department official dryly, “though perhaps less egregious than the 30% tariff.”

The U.S. insists the move is a response to long-standing "persistent tariff and non-tariff barriers" maintained by Sri Lanka. President Trump, in true form, framed the decision as the result of America’s commitment to “fairness” in trade — a term whose definition appears to have been reimagined somewhere between the South Lawn and Twitter.

Meanwhile, Sri Lanka’s Ministry of Finance sees a silver lining. “We negotiated this down from 44%. That’s a 14-point reduction,” said Dr. Harshana Suriyapperuma, Secretary to the Ministry. “We’re continuing talks until August 1. There’s still time.”

For the business community, even 30% is a heavy blow — but perhaps a slightly less fatal one. The Ceylon Chamber of Commerce called the move "a constructive and important first step," carefully applauding the government for doing… something.

They urged the administration to continue talks in hopes of closing the gap with regional competitors, many of whom enjoy far more favorable access to the U.S. market. “Buyer confidence depends on it,” the Chamber added, clearly aware that a 30% tariff does little to inspire retail affection.

But not everyone is breaking out the milk rice.

Opposition Leader Sajith Premadasa, ever the voice of rainy-day realism, took to X (formerly Twitter) with a message that read more like an obituary for economic pragmatism. “The 30% tariff is the price we pay for poor negotiation,” he wrote. “Our ego kept us from seeking every ally, every expert hand.”

A fair point — though it might sting a little less if Premadasa hadn’t said the same thing about the IMF, India, China, and at least three previous Finance Ministers.

Still, he’s not wrong: nearly $3 billion in Sri Lankan exports to the U.S. are now on uncertain footing, with key sectors — textiles, rubber products, and agricultural goods — bracing for impact. And while the government’s supporters claim this reduction shows the power of principled diplomacy, others suggest the U.S. simply shaved the penalty from “catastrophic” to “crippling” for the sake of optics.

The ball remains firmly in Colombo’s court — with a ticking clock. And the U.S., it seems, has moved on… possibly to correcting the next round of name spellings.