Sri Lanka, April 4 -- By Dr Gayan Gunewardana
BSc, MBA, GARF/FRM, CIMA/CGMA, AIB, Ph.D.
Introduction
The imposition of a 44% reciprocal tariff by the U.S. on Sri Lankan exports, particularly on key sectors such as apparel, has introduced significant risks to the country's export-driven economy. As the U.S. represents over 40% of Sri Lanka's apparel export market, this steep tariff increase is expected to have severe direct and indirect consequences, exacerbating existing vulnerabilities in the Sri Lankan economy. The potential economic impact is serious, particularly given the country's reliance on this sector for employment, foreign exchange inflows, and industrial activity. To address this, we must engage with clients to evaluate their...