Sri Lanka is set to engage in discussions with the International Monetary Fund (IMF) to assess measures to address the revenue losses expected from the 30% tariff imposed by the United States, effective August 1, according to Treasury officials.
Officials noted that the new tariff could significantly affect the country’s ability to meet the tax revenue targets agreed upon under the IMF’s Extended Fund Facility (EFF). As a result, consultations with the IMF are being planned to evaluate the potential economic implications.
In 2024, U.S. imports from Sri Lanka exceeded $3 billion, while U.S. exports to the island nation amounted to $368.2 million, leading to a trade deficit of $2.6 billion in Sri Lanka’s favor.
The officials further revealed plans to initiate dialogue with U.S. trade representatives to seek concessions for Sri Lanka’s apparel sector, which exports approximately 40% of its garments to the U.S. market. However, no date has been scheduled yet for these discussions.
