US tariffs may interfere with Sri Lanka's debt repayments, says expert

Record ID: 1988019

  • Title: US tariffs may interfere with Sri Lanka's debt repayments, says expert
  • Date: 3rd April 2025
  • Summary: PANADURA, SRI LANKA (APRIL 3, 2025) (REUTERS) VARIOUS OF WORKER OPERATING SEWING MACHINE WORKERS STITCHING GARMENTS IN FACTORY VARIOUS OF WORKER USING SEWING MACHINE WORKERS AT INDIVIDUAL WORK STATIONS STITCHING GARMENTS LARGE WAREHOUSE HOUSING WORKERS STITCHING GARMENTS COLOMBO, SRI LANKA (APRIL 3, 2025) (REUTERS) (SOUNDBITE) (English) CHIEF EXECUTIVE OFFICER OF ADVOCATA
  • Embargoed:
  • Keywords: Factory Garment Manufacturing Sri Lanka Tariff US
  • Location: PANADURA, COLOMBO, SRI LANKA
  • City: PANADURA, COLOMBO, SRI LANKA
  • Country: Sri Lanka
  • Topics: Asia / Pacific,Government/Politics,International Trade
  • Reuters ID: LVA003389203042025RP1
  • Aspect Ratio: 16:9
  • Story Text: An expert working in a Colombo-based policy think tank has warned of “serious” implications to Sri Lanka, after U.S. President Donald Trump announced a 44% tariff on the island nation on Wednesday (April 3).
    With debt repayments due to start in 2028 after the country declared bankruptcy and entered an agreement with the International Monetary Fund (IMF) in 2022, key industries in a structured IMF recovery program may be hit by Trump’s tariffs according to Advocate Institute CEO, Dhananath Fernando.
    These include the apparel and garment industry, the rubber industry and some agricultural categories, according to Fernando, who said the U.S. market accounts for 20-25% of all Sri Lanka's exports.
    "This impact of 44% tariff on most of these products is definitely going to impact on the growth of those sectors and will impact our dollar inflow. So, i would rate it as quiet serious", said Fernando.
    Sri Lanka's Labour Minister, Anil Jayantha, Sri Lanka will start "discussions" to see if the tariffs can be reduced before they kick in on April 9.
    (Production: Waruna Karunatilake, Channa Kumara, Gabriel Goh)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2025. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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