News
Sajith: Were trade negotiations handled in nation’s best interest?
Opposition and SJB Leader Sajith Premadasa yesterday warned that the 30% reciprocal tariff imposed on Sri Lanka by US President Donald Trump would have a serious negative impact on the country’s export sector.
Making a special statement, Premadasa said the new tariff would severely affect key industries such as apparel, tea, rubber, information technology, and fisheries. He said that the United States accounts for 26.4% of Sri Lanka’s exports and that in 2024, the total value of exports to the US stood at USD 3.8 billion.
He warned that imposing a 30% duty under the US’s reciprocal tariff strategy would create major challenges for exporters. Currently, 60% of Sri Lanka’s apparel exports are destined for the US, and this tariff is expected to result in a 30–40% drop in orders, he said.
“This will significantly affect not only the apparel industry but also the rubber and tea sectors,” Premadasa said, adding that the reduced dollar inflow could lead to depreciation of the Sri Lankan rupee, which in turn would drive inflation and increase import costs.
He further noted that with around 350,000 people employed in the apparel sector, this tariff hike would deal a severe blow to job security. He warned that it poses a serious obstacle to Sri Lanka’s goal of maintaining its position as an export-driven hub for foreign direct investment.
Premadasa emphasised that although the tariff was later reduced from 44% to 30%, it still represents a substantial retaliatory measure that would inflict significant damage on Sri Lanka’s economy. He warned that countries like Vietnam and Bangladesh could benefit from the situation, as Sri Lanka risks losing high-end apparel brand orders due to price sensitivity in the industry.
He added that value-added products in the tea and rubber sectors would also suffer major setbacks as a result.
“This crisis is something we warned about well in advance through the SJB,” he said. “There is now a question as to whether the current government did everything it could to secure the best possible outcome for Sri Lanka. After President Trump’s election victory, we repeatedly warned both inside and outside Parliament about the consequences of such actions—but did the government fulfill its diplomatic duty to protect the export sector and the interests of the people?”
Premadasa also questioned whether the mechanisms used in negotiations between the two countries were appropriate and effective, and whether they were followed through in the country’s best interest.
Prime Minister Dr. Harini Amarasuriya met with the representatives of the European External Action Service [EEAS] on Tuesdqy [10 th February] at the Prime Minister’s office.
Welcoming the delegation from the European External Action Service (EEAS), the Prime Minister emphasized the importance of further strengthening and deepening the long-standing partnership between Sri Lanka and the European Union, noting the role of the European Union as a key development and economic partner.
The Prime Minister also expressed appreciation for the timely assistance extended by the European Union to Sri Lanka in response to the recent cyclone, highlighting the EU’s continued solidarity and support during times of need.
Attention was drawn to the need to expand economic cooperation between Sri Lanka and the European Union. The Prime Minister underscored the importance of undertaking necessary legislative and policy reforms to facilitate enhanced economic engagement, trade, and investment.
The delegation was briefed on the ongoing initiatives and reforms being implemented by the new Government aimed at strengthening economic stability, governance, and creating a conducive environment for sustainable growth and international cooperation.
The meeting was attended by the Acting Managing Director for Asia and the Pacific in the European External Action Service, EU co-chair of the Joint Commission, Ms. Paola Pampaloni; EU Ambassador, Head of EU Delegation Ms. Carmen Moreno and the representatives of European External Action Services and Delegation of the European Union, and Additional Secretary to the Prime Minister, Ms. Sagarika Bogahawatta and the officials from the Ministry of Foreign Affairs, Foreign Employment, Tourism Sri Lanka.
[Prime Minister’s Media Division]
The newly appointed Country Director of the Asian Development Bank for Sri Lanka Ms Shannon Cowlin and the accompanying delegation met with Prime Minister Dr. Harini Amarasuriya on Tuesday [0th of February] at the Prime Minister’s office.
Welcoming the delegation, the Prime Minister extended congratulations to the newly appointed Country Director and acknowledged the long-standing partnership with the Asian Development Bank. The Prime Minister also expressed appreciation for ADB Bank’s continued engagement and support aligned with Sri Lanka’s national development priorities.
The Prime Minister also conveyed gratitude for the timely assistance extended by the ADB in response to Cyclone Ditwah, noting the importance of such support in mitigating the immediate impacts of natural disasters.
The ADB delegation reiterated its readiness to further assist Sri Lanka during the post-cyclone recovery phase, including rebuilding and reconstruction efforts, and emphasized its commitment to the supporting the education sector.
The meeting was attended by OIC / Deputy Director General, SARD Ms. Sona Shrestha, Ms. Cholpon Mambetova Country Operations Head of ADB Sri Lanka Mission Resident, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta, Director General of the External Resource Department, Ministry of Finance Samantha Bandara, Director for ADB Division in External Resource Department, Ministry of Finance Ranjith Gurusinghe.
[Prime Minister’s Media Division]
A discussion on regulating school student transport services was held on the 09th of February at the Prime Minister’s Office under the patronage of Prime Minister Dr. Harini Amarasuriya, with the participation of officials from the National Transport Commission and the Ministry of Education.
The authority for regulating school student transport has been vested with the National Transport Commission, and as the relevant draft of regulations have already been prepared, discussions were held on the provisions contained in these drafts as well as on new proposals that should be incorporated.
During the discussion, the attention was focused on meeting the emerging needs of transportation arising from the schools, minimizing issues encountered in the transportation of school students by establishing an organized transport mechanism, and deploying the “Sisu Sariya” school transport service in a more efficient and effective manner followed by the new educational reforms process.
Discussions were also held on introducing laws and regulations to systematize the transportation of schoolchildren, prioritizing child protection by preventing reported incidents of abuse and harassment during student transport, and enhancing professionalism among school transport service providers to ensure a responsible and accountable service.
The focus was also emphasized on the need for coordinated action among the Ministry of Transport, Highways and Urban Development, the National Transport Commission, the Ministry of Education, Higher Education and Vocational Education, and the National Child Protection Authority.
The discussion was attended by the Minister of Transport, Highways and Urban Development Bimal Rathnayake, Chairman of the National Transport Commission P. A. Chandrapala, officials of the National Transport Commission, and the officials from the Ministry of Education, Higher Education and Vocational Education.
[Prime Minister’s Media Division]
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