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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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Malaysia declares emergency in Sarawak as haze from Indonesia worsens

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This aerial photo taken from a commercial plane shows haze from Indonesian forest fires blanketing a residential district in Kuching, the capital city of Sarawak state on the island of Borneo, on September 5, 2026 (Aljazeera)

Malaysia has declared a state of emergency in a district in Sarawak state after haze caused by wildfires in neighbouring Indonesia increased air pollution to “hazardous” levels.

King Sultan Ibrahim “has consented to the declaration of emergency throughout Serian Division, Sarawak, following haze conditions that have reached air pollution levels hazardous to public health and safety”, Prime Minister Anwar Ibrahim’s office said in a statement on Thursday.

The declaration followed a formal request from the Sarawak Disaster Management Committee after the region’s Air Pollutant Index reached levels warranting consideration of a local emergency.

Under the order, 647 schools in Serian will close from Monday until at least the end of next week, alongside government and private offices, plantations, construction sites and quarries, with only essential services continuing to operate.

The state’s disaster management authorities said a three-day cloud-seeding operation launched on Thursday would be extended to at least Monday, citing forecasts of “more conducive cloud formations” during that period.

Sarawak State Disaster Management Committee chairman Douglas Uggah Embas, speaking at a news conference in Kuching, stressed that the emergency applied only to Serian, not the entire state, but urged residents there to take the situation seriously.

“Please minimise outdoor activities and avoid strenuous activities outdoors,” he said.

Sarawak, in the northern part of Borneo island, has been heavily affected by haze for weeks, as have the neighbouring states of Sabah and Peninsular Malaysia.

(Aljazeera)

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Sun directly overhead Moratuwa, Kesbewa, Handapangoda, Idalgashinna, Yudhaganawa, Kotiyagala and Panama about 12.08 noon today (05)

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The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is
overhead today (05) are Moratuwa, Kesbewa, Handapangoda, Idalgashinna, Yudhaganawa, Kotiyagala and Panama about 12.08 noon

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Namal remanded until Sept. 18 over Airbus deal investigation

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Namal Rajapaksa being brought to the Colombo Chief Magistrate’s Court

Sri Lanka Podujana Peramuna (SLPP) National Organiser and Parliamentarian Namal Rajapaksa was yesterday remanded until September 18 by the Colombo Chief Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in connection with an investigation into the controversial SriLankan Airlines Airbus aircraft transaction.

Rajapaksa appeared before the CIABOC at around 9.15 am yesterday to record a statement after being summoned over the transaction. He was taken into custody following several hours of questioning and subsequently produced before the Colombo Chief Magistrate.

The investigation centres on allegations surrounding the acquisition of six Airbus A330 and eight A350 aircraft by SriLankan Airlines in 2013, in connection with an alleged USD 2 million bribe.

Former SriLankan Airlines Chief Executive Officer Kapila Chandrasena and his wife, Priyanka Niyomali Wijenayake, had previously been named in connection with the alleged bribery.

Chandrasena was arrested on March 12 as part of an investigation launched by the CIABOC under the Anti-Corruption Act and was subsequently released on bail. He was later found dead on May 8 while on bail, with police suspecting that his death was a suicide.

Open warrants have been issued for the arrest of Wijenayake, who is named as the second suspect, and Shamindra Rajapaksa, named as the third suspect, in the case pending before the Fort Magistrate’s Court in connection with the Airbus transaction.

The investigation has also received assistance from Airbus, with a delegation from the company’s parent group in France visiting Sri Lanka during the first week of August. The delegation provided statements and other assistance to the CIABOC as part of the ongoing inquiry.

Rajapaksa’s arrest and remand yesterday mark a further development in the widening investigation into the controversial aircraft deal.

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