Meanwhile, tensions between the world’s two largest economies remain high

By Sanath Nanayakkare

Sri Lanka’s already vulnerable financial position could be further threatened by the ongoing US trade war, according to a recent analysis by Fitch Ratings.

The global ratings agency highlights that Sri Lanka, currently rated CCC+, is particularly susceptible to negative impacts if its export earnings are hit by the escalating tariffs.

Fitch Ratings, Hong Kong, in a press release issued on April 15, 2025, warned that increasing US tariffs would weigh on the credit metrics of many sovereigns in the Asia-Pacific (APAC) region. The report emphasised that APAC’s high trade openness and reliance on US demand make it especially vulnerable to the fallout from the trade war.

While the 10% tariffs imposed by the US on most countries are slightly below Fitch’s earlier projections, the agency believes that Asian economic growth will slow as exports and export-oriented investments suffer from tariffs and increased uncertainty.

“This slowdown, coupled with weaker commodity prices and exchange rate adjustments, will affect APAC sovereigns to varying degrees. Several economies in the region, including China, Vietnam, Taiwan, Thailand, and Korea, rely heavily on manufacturing exports and investments, with the US serving as a major export market. These economies could face significant challenges as a result of the trade war,” it stated.

Fitch noted that government policy responses would be crucial in determining the ultimate impact on APAC sovereign ratings. While some higher-rated jurisdictions like China, Singapore, and Taiwan may have the fiscal space to implement stimulus measures, some others, including Sri Lanka, have limited headroom due to high debt levels and constrained fiscal consolidation since the pandemic and its own economic crisis.

The ratings agency also cautioned that the US dollar could appreciate against some APAC currencies, potentially increasing debt burdens for countries with a large share of foreign-currency debt. Furthermore, foreign-exchange reserves could shrink if authorities intervene to support their currencies, further straining economies with low external buffers like Sri Lanka.

Fitch concluded that countries with relatively low external buffers, such as Bangladesh and Sri Lanka, were particularly at risk if their export earnings were negatively impacted by the tariffs.

Meanwhile, tensions between the world’s two largest economies remain high.

After the White House website claimed that imports from China to the US would face tariffs of up to 245 percent, the Chinese Foreign Ministry warned yesterday that China would pay no attention to the US’s further tariff numbers game, and it would take ‘resolute countermeasures’ and ‘fight to the end’ if Washington persisted in substantially infringing on China’s rights and interests.

China Daily – the ruling Chinese Communist party’s English-language mouthpiece published a sharply worded editorial on April 15, rejecting U.S. President Trump’s repeated claims that the US had been ‘ripped off’ by China.

“The U.S. is not getting ripped off by anybody. It is taking a free ride on the globalisation train and is living beyond its means,” China Daily argued.

Now supplies 11 automobile brands assembling vehicles in Sri Lanka, contributing to local value addition

Six years after it entered into its first Original Equipment Manufacturer (OEM) partnership in Sri Lanka, CEAT Kelani Holdings has grown into a significant contributor of value addition to the country’s burgeoning automobile assembly industry.

Locally-manufactured CEAT tyres are now original equipment in 11 brands of vehicles rolling off assembly lines in Sri Lanka, ranging from Sports Utility Vehicles (SUVs), cars, buses, lorries, pick-up trucks, motorcycles and scooters, the company said.

These tyres, many of them designed precisely to vehicle manufacturer specifications, fit more than 30 models of vehicles, including 16 bus models and five models of motorcycles now assembled in Sri Lanka.

CEAT Kelani currently supplies more than 150,000 Original Equipment (OE) tyres annually to the local vehicle assembly industry covering more than 90 per cent of vehicles assembled in Sri Lanka, and the OE segment accounts for 12 per cent of the CEAT branded tyres sold in the domestic market.

“The OEM partnerships a manufacturing brand like CEAT has entered into are extremely significant to all tyre users, because they demonstrate the automobile manufacturers’ confidence in the quality and performance of the products,” CEAT Kelani Chief Operating Officer Mr Shamal Gunawardene observed. “These partnerships are based on stringent evaluations of our tyres by experts and are based on CEAT’s ability to satisfy the technical requirements of each type of vehicle.”

“Through OEM projects, CEAT enhances its own manufacturing capabilities, aligns with global quality standards, and tailors products to meet local needs,” he added.

Among the automobile brands that have chosen CEAT tyres as original equipment in Sri Lanka are Hyundai, JAC, JMC, DFSK, Mahindra, Micro, Tata, Lanka Ashok Leyland, TVS, Bajaj and Dyno.

Citrus Resorts & Hotels, a leading name in Sri Lanka’s hospitality sector, has reported a significant increase in bookings and inquiries, reflecting a growing demand for premium travel experiences. With two iconic beachfront properties—Citrus Waskaduwa and Citrus Hikkaduwa—the brand continues to attract travellers seeking both relaxation and adventure.

Nestled along Sri Lanka’s southwestern coast, Citrus Waskaduwa stands as the ultimate getaway for those looking to unwind. Offering 140 rooms, including 7 suites, an executive suite, and a presidential suite, the resort boasts private balconies with panoramic views of the Indian Ocean.

Guests can indulge in a diverse culinary experience across multiple dining venues, including Lemon Sun Restaurant, Pomelo Hi Bar, Aqua Peel Pool Bar, and Pips n Sips Coffee Shop. The Asian-inspired Citron Senses spa further enhances the experience with expertly curated Eastern and Western treatments by skilled Balinese therapists.

Catering to families and corporate groups who plan to visit during the April holidays, the resort offers exclusive packages for fun-filled getaways as part of its Avurudu celebrations. Guests can enjoy a festive beachfront experience with traditional activities, including Beli Mal tea on arrival, a morning and evening tea table, and a special Sinhalese lunch buffet. The celebrations also feature Avurudu games with equipment setup and access to the swimming pool with changing rooms. Additionally, special rates for rooms and discounts on spirits, chasers, and bites make the occasion even more memorable.

For those seeking a vibrant beachside experience, Citrus Hikkaduwa offers the perfect mix of relaxation, culture, and adventure. With 90 stylish rooms spanning Deluxe, Superior, and Standard categories, the resort provides a comfortable stay in the heart of Sri Lanka’s southern coast.

Adrenaline seekers can enjoy scuba diving, wreck diving, snorkelling, deep-sea fishing, jet skiing, and surfing lessons—an opportunity to experience Hikkaduwa’s famous waves firsthand. Additionally, curated excursions, such as the Madu River Boat Safari, Galle City Tour, and visits to turtle hatcheries, offer guests a chance to explore the region’s natural and cultural heritage.