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U.S. slashes tariffs on Sri Lankan goods to 20% — ‘A Game-Changer for Exporters’

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In a significant boost to Sri Lanka’s export economy, U.S. President Donald Trump has signed an executive order reducing import tariffs on Sri Lankan goods to 20%—a dramatic drop from the steep 44% announced in April. The decision, confirmed by the White House recently, comes as a major relief to Sri Lankan exporters, particularly in key industries such as apparel, ICT, minerals, tea and aquatic products, who were struggling to remain competitive in one of their largest markets, the National Chamber of Exporters has said.

Extracts from the NCE media statement: “This breakthrough is the result of strategic diplomatic efforts, and the leadership of the National Chamber of Exporters (NCE) has warmly welcomed the move.

“NCE president Indhra Kaushal Rajapaksa commended the government and the negotiating team, stating:

‘This is a timely and hard-won achievement. The reduction in tariffs creates breathing space for our exporters and reopens doors to the U.S. market. The negotiating team must be applauded for delivering this positive result amidst a complex and highly protectionist global trade environment.

‘We commend the professionalism and persistence of the Sri Lankan officials and negotiators who made this breakthrough possible. Their efforts have created a platform for renewed optimism within our export community.’

However, NCE Secretary General/CEO Shiham Marikar cautioned that while the tariff cut provides a more level playing field, Sri Lankan exporters are still burdened by high domestic costs:

‘Electricity, logistics, port charges, and regulatory red tape make the cost of production in Sri Lanka significantly higher than in countries like Vietnam, Bangladesh, and India. Without addressing these fundamental inefficiencies, we risk falling behind—despite having tariff access.

‘While the reduced U.S. tariffs are welcome, Sri Lanka must now take a broader and long-term view of its export strategy.

‘We cannot be overly dependent on a single market like the U.S., said Marikar. ‘Global trade is becoming increasingly volatile. To ensure resilience, Sri Lanka must diversify its export destinations, add more value to its products and focus on niche markets.’

“Exporters are encouraged to explore emerging markets in the Middle East, Africa, Eastern Europe, and Latin America—regions that offer growing demand and fewer entry barriers. Government-to-government trade agreements, regional partnerships, and targeted marketing efforts are key to accessing these untapped opportunities.

“Sri Lanka’s traditional reliance on raw and semi-processed exports must shift toward innovation-driven, high-margin products. For example:

“Instead of bulk tea, promote premium wellness teas with sustainable packaging.

“In apparel, capitalize on ethical manufacturing to build global brands.

“Value addition not only increases export earnings but also enhances Sri Lanka’s positioning on the global stage.

“Sri Lanka should focus on sectors that prioritize quality, traceability, sustainability and ethical sourcing. These include: Artisanal foods, Organic products, Designer home décor, Wellness goods, Fair-trade certified apparel”



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Heat Index likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in Monaragala and Mannar districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 12 March 2026, valid for 13 March 2026.

Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Western, Sabaragamuwa, Southern and North-western provinces and in
Monaragala and Mannar districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.


Effect of the heat index on human body is mentioned in the above table and it is prepared on
the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Govt. bends rules, lowers coal standards in favour of errant company: FSP

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Pubudu

The Frontline Socialist Party (FSP) yesterday accused the government of trying to award another tender to the Indian company that supplied low-grade coal to the Norochcholai Power Plant and failed to deliver the stipulated amount of coal according to schedule.

The allegation was made by the Education Secretary of the Progressive Socialist Party, Pubudu Jayagoda, during media briefing at the party office in Nugegoda last afternoon.

Jayagoda said that in September 2025, the government had awarded a tender to the Indian company Trident Chemphar to supply 25 coal shipments for electricity generation in 2026.

In August 2025, it was confirmed that the coal delivered by the company was substandard. The company also failed to supply coal on schedule. Although the first shipment was expected in the second week of December 2025, it arrived at the end of the month. By mid-March, only 12 ships had arrived, and biweekly deliveries have been disrupted, putting Sri Lanka at risk of a severe energy shortage.

On 11 March, the government called a sudden spot tender for five coal shipments. Four companies submitted bids, and they include Trident Chemphar. FSP criticiced awarding the tender to the same discredited company, saying it was unethical and could trigger a major national crisis, as the company had failed to supply quality coal reliably in the past.

Previously, coal quality was strictly measured, with a “Reject Value”. But now to help the errant supplier the term of Reject Value has now been omitted altogether and replaced with a new term ‘Minimum Value’ setting it as the minimum calorific threshold—coal producing less than 5,900 kilocalories per kilogram was rejected, and coal with ash content above 16% was also discarded.

However, the government is now reportedly lowering these standards, accepting substandard coal, and changing tender specifications to accommodate the company.

Jayagoda castigated the latest stunt coming especially at a time when the world faces war and oil shortages. Diesel meant for electricity generation is being diverted to school buses, public transport, and emergency vehicles, leaving households at risk of prolonged blackouts. Even if diesel is imported, electricity tariffs could skyrocket.

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Lanka requests diesel from India

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The Indian Ministry of External Affairs has said it is considering requests for diesel supplies from neighbouring countries, including Sri Lanka, Bangladesh and the Maldives.

Speaking to the Press Trust of India, Ministry Spokesperson Randhir Jaiswal noted that India was a major exporter of refined petroleum products in the region. He confirmed that Bangladesh had formally requested a diesel supply, which is currently under review.

He said that diesel exports to Bangladesh had largely continued since 2017, but any new allocations would take into account India’s refining capacity, domestic demand, and overall fuel availability.

Jaiswal added that similar requests from Sri Lanka and the Maldives were also being considered, with India’s own energy requirements forming a key part of the decision-making process.

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