Features
Trump drives USA perilously close to recession

First 100-days of the administration
With President Trump now engaged in renaming various parts of the world after the name of the land he rules with an iron Sharpie, it may be interesting to consider what else he has achieved in the first 100-days of his second term.
Trump had a wonderful first 100-days in his first term in 2017, when he inherited from President Obama 75 consecutive weeks of a booming economy and the lowest unemployment rates in decades. An economy that even he did not have the experience to ruin. Experience which he has now gained sufficiently to bring an economy he inherited from President Biden, which was the strongest in the world in October 2024, to the cusp of recession in a mere 100 days.
Trump has unilaterally already instructed the cartographers in the United States to rename the oceanic basin and marginal sea of the Atlantic Ocean, bounded on the northeast by the gulf coast of the United States, on the south by Mexico and the southeast by Cuba, which has been known in all maps of the world for the past four centuries as the Gulf of Mexico, as the Gulf of America.
The Gulf of Mexico is now called the Gulf of America for Google Maps users in the United States, in keeping with the terms of President Trump’s controversial Executive Order. In fact, President Trump recently banned an Associated Press reporter from White House briefings for continuing to name the Gulf of America by its original name, though that body of water remains the Gulf of Mexico in all other maps of the world.
Trump is also proposing to rename Canada as the 51st State of the Union, Greenland as red white and blue land, the Gaza Strip as the United States Riviera and the Panama Canal as the Panamerica Canal. It is surprising that he has not renamed the Great States of New Mexico and Indiana as the Great States of Old America and Americana, respectively.
Actually, Canadian liberals must thank Trump for his proposal to call Canada the 51st State. Pro-Trump Canadian conservatives, led by Pierre Poilievre, were leading the liberals by 25 points when Trump made the 51st State announcement after his inauguration in January, 2025. This angered all Canadians and united them, liberals and conservatives, so as to elect Mark Carney, the leader of the Liberal Party, as the Prime Minister of Canada last week. Thus arresting the swing towards the right that Canada was leaning after over a decade of liberal rule.
It is likely that Trump will similarly unite all Americans against the Republicans, except, of course, the MAGA (Make America Great Again) cult, if his first 100-day performance is anything to go by.
The performance of a president in his first 100 days was always measured by that of President Franklin Delano Roosevelt, who was inaugurated in 1933 during the depths of the Great Depression, when America was reeling under unemployment and poverty. Since then, the first 100 days of every president’s term has been taken as a benchmark to gauge the early success of a president.
In Roosevelt’s first inauguration speech in January 1933, he made his famous statement, “We have nothing to fear but fear itself”. He spent his first week dealing with bank closures which were ruining the finances of families nationwide. He began a series of his renowned “fireside chats”, when he spoke to a radio audience of more than 60 million people, explaining to them what steps he was taking to alleviate the crisis.
He restored the confidence of the people with the reopening of the banks with the enactment of the Emergency Banking Act. He created the beginnings of a social safety net with his New Deal, which aimed at the goals of increasing employment and to address the immediate needs for a support system for the poor. He spent millions of dollars on soup kitchens, employment schemes and nursery schools.
Roosevelt’s first 100 days saved America not only from the depression, but created the beginnings of an equitable “woke” society, despised by today’s American conservatives, in the richest nation in the world. A system which brings out all the creative features of capitalism with the compassion of democratic socialism, an ideology followed by every one of the advanced, wealthy nations of the world, bar the richest and the most advanced.
It would be remiss if I did not list Trump’s most important act on the first day of his inauguration, which had nothing to do with the economy. He pardoned every one of the 600 plus criminals who stormed the Capitol on January 6, 2021, threatening to kill Vice-President Mike Pence and to violently impede the peaceful transfer of presidential power, as incited by him.
Trump’s first 100 days have taken the United States of America from an economy, which according to The Economist of October 2024, was “The Envy of the World”, to one on the cusp of recession. The announcements of his increased tariffs have already increased prices and promises certain rises in inflation, as their effects begin to take effect in the immediate future.
The biggest retailers in the country, like Walmart and Target, have already warned that increased tariffs will result in empty shelves within weeks, and small businesses, especially those trading in toys and other Christmas items, are already consulting with bankruptcy lawyers.
Given the Republican’s razor-thin majority in the House, Trump has so far ruled the nation by Executive Order. His record of 140 Executive Orders in his first 100-days eclipses Roosevelt’s 99 in his first 100-days.
Of course, FDR’s Executive Orders were aimed primarily at saving the nation from the Great Depression. Trump’s 140 were mainly aimed at “the greatest deportation program in the history of the world” – which he has been carrying out by illegally deporting immigrants, some citizens and Green Card holders, without due process – but still at a lower rate than that achieved during the Biden administration.
Trump has also, through the illegal Department of Government Efficiency (DOGE), led by Elon Musk, the richest man in the world, terminated federal and other employees arbitrarily; often with no reference to merit and concentrating on eliminating DEI (Diversity, Equity and Inclusion) hires. A program designed to ensure that the interests of minorities are protected in hiring procedures. But a concept completely at odds with the Trump/Musk belief that only a white man is capable of doing any important job. A concept that Trump has conclusively proved in his hiring of the most important jobs in his cabinet, the most notable being the appointment of Defense Secretary, Pete Hegseth, a Fox Newscaster with a police record of lewd and drunken behavior.
One of the first cuts by DOGE was the defunding of US AID (United States Agency for International Development), the premier US Agency for international aid to poverty-stricken communities worldwide, the greatest and most admired instrument of the USA for soft power. The closure of all US AID offices worldwide and immediate stoppage of shipping of food and medicines to poor nations have already cost thousands of lives.
Trump has taken over as the Chairman of the John F. Kennedy Center for the Performing Arts. It’s a matter of time that its Board of Directors, including his Chief of Staff, Susie Wiles and the Second Lady of the USA, Usha Vance, clamor for its renaming to
as the Trump Center. While JFK will be doing somersaults in his grave, the name is strangely appropriate. Who better at the Performing Arts than the Donald, whose performances in American courtrooms, election rallies and indeed during his time at the Oval Office, have captivated a nation.
Trump has also threatened to stop the federal funding to Harvard University on false grounds of anti-Semiticism and DEI hires, and to force the university to submit to the government’s control over its academic programs. Harvard’s lawyers are fighting Trump, arguing, correctly that these orders violate the university’s constitutional rights.
Trump has already taken measures to close the Department of Education, and educational curricula will be left to the individual states. The history of the genocide of 10 million native Americans, slavery, Reconstruction, the Apartheid of Jim Crow, will be hidden from future generations of American kids.
Fareed Zakhariya of CNN had an interesting take on Trump’s assault on American universities. He stated that the federal funding of the greatest universities in the world, like Harvard, has enabled research resulting in major breakthroughs in science and medicine, which has made the USA produce the greatest number of Nobel Prize winners since World War II. That is what will be lost through Trump’s idiocy. Fortunately, Trump will never win this particular battle.
Of course, Trump blames the negative GDP numbers on the Biden administration. Although he did say, after he was elected, that the numbers will go up from the first day of his administration. Just as he said, during the first months of his first term, when he was claiming the credit for the booming economy he inherited from President Obama.
Trump’s polling numbers are all under water. He only has the support of his MAGA cult, and the Republican politicians who fear they will lose their jobs at the next midterms by being “primaried” by Elon Musk. Of course, that depends on how long that unholy Trump/Musk alliance will last; it’s already showing signs of a split.
Trump’s translation of the famous FDR words that “the only thing we have to fear is fear itself” seems to be “the only thing we can rule by is fear itself”.
The consensus of all media outlets, including Fox News, is that Trump’s first 100 days of his second term are the worst in 70 years. They are opening the eyes of Americans, as evinced by nationwide protests against tariffs, rising prices and illegal deportations. Americans seem to be regaining their courage, and courage is contagious.
by Kumar de Silva
Features
A visa for bringing in expertise and expanding tourism

In this article, I introduce an idea which is simple to implement but is powerful and helps with building technical skills, strengthening the country brand and creating international opportunities for Sri Lankans. Furthermore, it can diversify and extend the country’s tourism revenue streams.
The simple idea is to introduce a hassle-free visa for Internships, Volunteering, Expert Exchange Programs and Short-term Studies. For brevity, let me call it a Knowledge Transfer Visa or KTV. There are three important clarifications to make up-front. Firstly, this visa is not for those seeking paid employment in Sri Lanka. Secondly, the local partner needs to ensure that if any local permits or permissions are applicable, these are in place and cover any KTV holders. Thirdly, it is not a resident’s visa and tourist rates will have to be paid by KTV holders for their sightseeing.
It is also important to spell out up-front a critical requirement for success. This is that an applicant from a country who is entitled to obtain an online tourist visa quickly and easily should be able to obtain a KTV with the same ease and convenience. It would be reasonable for the Department of Immigration to have an additional information box in the visa application to ask for the name and contact details of the local partner (corporate or individual). But it should not be the role of the visa issuing officer in a Sri Lankan foreign mission or the Department of Immigration to examine paperwork to assess the credentials of the visitor and the local partner. This should be left to the applicant and local partner to assess each other. By analogy, a tourist is not asked to demonstrate that the hotel they have booked into is validly registered as a tourism business. Nor does the visa issuing process ask the hotel if they have vetted the tourist’s ability to pay. If the KTV is kept as simple as an online tourist visa, it will succeed, otherwise it will fail to deliver the potential benefits.
A reader may ask why this sort of visa is needed. The answer is that Sri Lanka is well positioned to benefit from activities covered in a knowledge transfer visa. However, such visits will only materialise if foreign nationals are reassured that they can arrive for such purposes with a visa where the purpose of their visit is explicitly recognised and they are confident that their visit is welcomed. Visitors on a KTV will bring in hard currency revenues in much the same way as ordinary tourists but importantly lead to other benefits such as the import of expertise, building international networks for local corporates and individuals and being potential repeat visitors. Let me explain by running through the various strands.
Internships
With the first strand, Internships, there is an overt intention that people want to work in a very structured manner and obtain useful work experience to help obtain paid employment back in their home country. Sri Lanka for various reasons, wishes to have tight controls over foreign workers and to limit foreign nationals on work visas. It is important to point out that facilitating internships need not conflict with this thinking. Incoming foreign interns are different to full-time foreign workers and caters to a younger demographic looking for a short period of work experience. If Sri Lanka restricts foreign internships to unpaid internships, this will limit the candidate pool to those interns who have parental financial support. Nevertheless, this is still a start and better than not opening the door at all.
In many sectors, Sri Lanka can offer meaningful summer internships of up to 3 months or longer. Two obvious examples are Tourism and Information Technology (IT). Sri Lankan companies cannot run viable business models by relying on a supply of foreign interns. Therefore, foreign interns do not in any way threaten the prospects for locals for employment. On the contrary, foreign interns from developed economies can benefit locals working with them in various ways. These could include improving language skills, and locals gaining exposure to skills such as time-management and project planning. Internships can also be used for foreign students to engage in undergraduate and postgraduate university projects with local academics.
To explain how foreign interns can be very useful, let me construct an example. It is a fact that Sri Lankan companies are writing the software for some of the most technologically advanced companies in the world. Imagine Sri Lankan IT companies actively pitch this to foreign universities in advanced economies and foreign undergraduates take up internships in Sri Lanka. Not only do they gain work experience of an equivalent standard to working in London or New York, but they will have a more exciting time in a tropical country. When they graduate, they will take up jobs in London, New York or wherever. When their employers are looking to outsource work, they may recommend the companies they worked with in Sri Lanka. Some of these foreign interns may even start their own companies in the future and look to outsource work to the Sri Lankan companies they worked with. If the new start-ups do well, there may be frequent business visits. When their former interns start families, they will visit Sri Lanka on visits which combine business meetings with a family holiday. Their children in turn will grow up with Sri Lanka being a place that was a regular holiday destination and, in the future, bring their own children on holiday. Internships in Sri Lanka to foreign students can grow future business revenues and also create a multi-generation chain of tourists.
Some foreign interns can also work in a three-way collaboration between their university, a local university and a private sector company. Take for example, a hotel that has placed camera traps on its property to study wildlife. If they do it on their own, it may simply be for marketing the hotel. If they can partner with a local academic or conservation NGO, it could be elevated into a formal study, perhaps even a long-term study. For both the local academic and the hotel, it would be useful if any work they do is part of a long-term study with a foreign university. International collaborations like this are also more useful to the hotel in their efforts for international publicity. For the local academic or conservation NGO, the international collaboration could also open opportunities for funding and recognition and invitations to present in international conferences. A win for all.
If Sri Lanka companies open up to foreign interns, it may result in them realising the value of well-structured internship programs and the dialogue with overseas interns and their academic supervisors may lead to good internship programs being set up for both local and foreign applicants. This can only help young resident Sri Lankans who at present are frustrated by the paucity of structured internship programs even amongst Sri Lanka’s leading companies.
Before I continue to the next two strands, it is useful to reiterate why a knowledge transfer visa is important. The above-mentioned benefits can only arise if potential foreign interns and volunteers have a mechanism of a special visa to reassure them that the purpose of their visit is properly disclosed and that their activity in Sri Lanka is welcomed and completely above-board within the stated purpose of the visa.
The same will apply, with voluntourism, which is a form of commercial tourism activity. Overseas companies that have a business model of arranging voluntourism abroad are more likely to add Sri Lanka as a destination if a KTV existed.
Volunteering
The second strand is Volunteering and here I define it narrowly to cases where a volunteer is not volunteering to build out their CV to help them gain paid employment in their home country. If they are doing so, it is covered under the Internship category. Under this definition, volunteers are people who fall into two broad categories. They may be volunteering for recreational purposes, coupled with wanting to do something that is societally useful. Or they may be people who are retired and on a comfortable retirement income who now have time and money to give something back to society. For example, a person in a highly paid job may come and volunteer for two weeks on a science (e.g. biodiversity surveys) or an arts project (e.g. cataloguing temple art). They may do this because they enjoy doing something different from their day job which is related to their personal interests and societally useful. This type of volunteering has become a significant form of tourism, known as voluntourism.
For the second type of volunteering an example would be a retired wildlife reserve manager from overseas who is happy to work for free with a Sri Lankan hotel or game lodge to train guides and provide practical help in rewilding the grounds of the property. They may enjoy mentoring and want to share their experience with others who are happy to learn from them. To take another example, it could be a retired museum curator who is happy to volunteer at a government museum to train local staff and inject fresh thinking into how exhibitions are curated.
The host country receives free expertise and valuable time from such volunteers. The volunteers are also paying tourists.
In G20 countries, volunteering is highly organised and has resulted in businesses that provide on-line platforms to match volunteers with recipient organisations. Sri Lanka can benefit from making it easy for people to volunteer and to come over, whether it is to paint hospital wards, help in beach clean-ups, or to help at a literary, music or cultural festival or to train local wildlife guides. Many volunteers will also look to add on a holiday extension to their volunteering stay. It is not just free people-hours of work and spending as foreign visitors: Carefully chosen good volunteers also bring in ideas, know-how, enthusiasm and energy.
Expert Exchange
The third strand in the knowledge transfer visa is for Expert Exchange. This is for people who are established in their discipline and looking to diversify their experience and build an international network by engaging in short term unpaid assignments overseas. For example, let’s assume a senior academic would like to spend a month working with local counterparts. Perhaps it is someone from a Management Science faculty who is interested in South Asian trade and wishes to work with local counterparts in a Sri Lankan professional institution or the Management Science faculty of a university. Or, perhaps it is an academic with an interest in contemporary Asian art. In such situations, a mutually useful arrangement between the foreign visitor and any local counterparts would be for the visitor to be provided a desk and some working space in the local faculty. Perhaps the visiting academic or professional can even undertake to give a certain number of lectures to Sri Lankan students. Relationships established in this way could lead to reciprocal invitations for Sri Lankan academics to attend foreign conferences and workshops and possibly help with Sri Lankan students receiving guidance and support with doing a PhD overseas. The visiting academic or expert is not being paid by the local partners in Sri Lanka and will continue to be on the payroll of their employer in their home country. Again, such visitors need to be reassured that what they are doing is deemed above -board and welcomed. They would not wish to come to Sri Lanka on a standard tourist visa for an engagement of this kind.
Short-term Study
The final strand of the knowledge transfer visa is for Short-term Study. Sri Lanka already has the skilled teachers and education infrastructure to offer undergraduate degrees from several foreign universities. It also runs accredited courses for professional qualifications from organisations that are based in G20 countries, whether it is in Accountancy or Marketing or IT. This capability can be expanded to provide ‘summer schools’ where foreign students arrive for a combination of classroom and field teaching. Local educational institutions can use their business initiative to develop curricula in consultation with foreign universities to meet the coursework credit requirements. If it is simple and easy to obtain a visa to attend such a course in Sri Lanka, this becomes a tempting offer for foreign students. In areas spanning from medicine, tourism, and the biological sciences, Sri Lanka can become an exciting destination for classroom and field work.
Conclusion
The results won’t be seen immediately as it takes years for local counterparts and foreign counterparts to respond and adapt to the benefits of such a visa. But slowly and steadily, we will see benefits accruing to the country. We also need to keep in mind that with anything that involves people, sometimes things don’t work out. A few foreign visitors or the Sri Lankan partners may not fulfil their obligations properly. We should not allow misguided fears of a few bad apples to block the massive potential for Sri Lanka to benefit from a simple but powerful idea that is easy to implement. It would benefit the private sector, state institutions, the universities, and many other sectors to encourage the government to introduce such a visa.
To conclude, if a knowledge transfer visa (KTV) is created which is as simple and quick to obtain as an online tourist visa, it will create a comforting and reassuring environment to encourage foreign visitors who are looking for something more than a short holiday. This will result in hard currency revenues in multiple ways as with ordinary tourism. However, there are potentially significant additional benefits from the bringing in of know-how, skilled people-hours of work, the scope for new types of businesses to develop, and allow Sri Lankan individuals, corporates and institutions to have doors opened for them for international business and academic opportunities. Furthermore, there is a huge Sri Lankan diaspora out there whose children and grandchildren do not have dual nationality but could be encouraged to bring their money and know-how for a longer length of time in Sri Lanka through a knowledge transfer visa.
by Gehan de Silva Wijeyeratne
Features
Corruption outed; Stirrings in the West

TV news showed Keheliya Rambukwella with a walking aid and grizzled unshaven, attending courts and leaving in a prison van. His son Ramith is implicated in a corruption case being heard against his father. So it’s a case of like father, like son. We recall this cricketer son was no gentleman. He supposedly broke into an office in his college – Royal, Colombo 7 – to interfere with a marks sheet or whatever. More notoriously, returning from Australia as a member of a cricket team, he attempted opening a door of the Sri Lankan plane they were in. Doors in planes are extra strong and difficult to open; otherwise if he had succeeded, there would have been a fierce rush of air and he surely would have been dragged out to fall to the ocean or land and sure death. More seriously, havoc would have been created within the plane accompanied by dire danger to passengers. He is supposed to be unemployed but living in a very expensive, luxurious flat.
Wages of sin
Not many like to see others suffering, particularly mothers of sons. But there was no sorrow, not a twinge, on seeing Keheliya limping and getting into a prison van; so different from the suave man he was. The reason is that one has to pay for sins and transgressions including the procurement of substandard and fake medicinal drugs for government hospitals.
There is no sympathy in Cass’ heart, even for Rambukwella Jr. since he developed within himself his father’s nature. The uppermost thought in her is that retribution is inevitable. Most people think it passes to manifest itself in the sinner’s next and future births. Not always. They suffer in this life too. Here is a solid example to prove this point.
When we women talk about corruption in this beautiful island some note that entire families are corrupt to the core and have collected vast amounts of illicit money, safely stashed away. They seem to be fine; the younger ones grinning from ear to ear, cock sure of themselves. But what about their minds, their nightly dreams? Are they afraid? Do nightmares torment them? Sure the older thieves suffer thus.
“Retribution often means that we eventually do to ourselves what we have done unto others.”
Why two remembrances?
Politicians particularly, often prove that Sri Lanka is a land like no other – negatively – Cass adds. The Medamulana Rajapaksa family proved this point on Tuesday 20 May.
The War Heroes Commemorative ceremony, which is Remembrance Day in Sri Lanka, is observed on May 19, when the end of the civil war in 2009 is marked. Those who died in the 28 year war, both armed forces personnel and civilians, are remembered on this day. A solemn ceremony was held in Battaramulla in the grounds of the stately National War Memorial, with the President, and army, navy and air force heads of that time present. Also the nearest kin of those who gave their lives to save the country, mostly mothers and wives, laid red roses at the foot of the memorial.
Then surprise, surprise, another ceremony was held the following day at the same venue and most prominent were Mahinda and Gotabaya Rajapaksa. The news reporter of the channel Cass watched announced it was a memorial service for war heroes. But the war heroes had already been duly remembered the previous day by the entire nation. Pohottu members would have been present but it was not an SLPP ceremony. What was it then? A public remembrance by private persons since both brothers are out of politics and out of job now.
It is only in Sri Lanka that such a ‘circus’ can be staged. IWere the dead being used to shore waning popularity? Perfectly true, the two brothers did much to bring peace to the country; they went to war against severe objections and obstacles placed by local persons in secondary power, and foreign nations. But that does not justify a separate remembrance.
Maybe they do not know how such ceremonies are conducted in civilized foreign countries. They would not have watched the anniversary of VE Day (May 8) held in London and the respect and homage paid to WWII veterans and the remembrance of those who died in battle. Such an impressive, dignified late morning ceremony with King Charles III, Queen Camilla and other Royals present. The country and its leaders unified in remembrance and gratitude. No politics whatsoever. In this country politics rears its Medusa head in all public occasions and even very private ones like weddings. Next year we may have two separate celebratory events for National Day – February 4.
Lies and subterfuges
As usual a mega Trump deal is surrounded by lies, denials, drawing the wool over the public eye and subterfuges which last means “deceit used in order to achieve one’s goal.” The goal was getting a replacement for the presidential airplane which certainly is old – 40 years – and its interior not up to Trump’s garishly lavish standards. The Trump administration first approached Qatar to acquire a redundant Boeing 747 with a price around USD 400m to replace Air Force One. The other story is that Qatar reached out and offered the jet as a gift to Trump. The 747 flew to Florida in March so Trump could inspect it, which he did. A circulated report is that Qatar gifts the 747 to Trump personally to be used as his presidential jet and once he leaves the White House, it is his private possession. This tale one could well believe knowing the sort of a person Trump is and how wily Middle East potentates are: no giving without getting in return.
Cancer stalks American VVIP
Trump’s immediate predecessor has had another trauma. President Joe Biden announced he had been diagnosed with aggressive prostate cancer, which means his days are numbered. He was the oldest US Prez but much admired and polled to be the 14th best president in the history of the US. His first wife and one-year daughter died in a car accident on December 18, 1972, just four years after marriage. He was a devoted father to his two sons aged 2 and 3 years then. At age 46, in 2015, his elder son Beau died of brain cancer, which Biden maintained was due to his service in the Kosovo war where dangerous gases were used. And now this illness at 82. A good man given more than his fair share of tribulations.
Cruelty beyond measure
Deaths in the Gaza strip increase by the day as Israel bombards it with air missiles and debars food aid getting in. Children are dying by the hundreds and doctors in large numbers as hospitals are targeted for attack. Netanyahu has pronounced he wants the entire Gaza strip as part of Israel. How can he possibly expect this? However, at the rate the war is proceeding he will soon overcome Hamas and ride into Gaza as a vanquisher and acquirer. No nation seems to be ready to help the Palestinians.
Features
Trump’s trade tariffs pose hidden threats to Sri Lankan economy

Colombo, Sri Lanka – While U.S. President Donald Trump’s trade war primarily targeted global economic heavyweights like China and the European Union, its ripple effects are being felt across smaller economies including Sri Lanka. Experts warn that Trump’s protectionist trade policies, particularly the imposition of tariffs and the “America First” doctrine, could significantly impact Sri Lanka’s export-driven growth model.
Global Supply Chains Under Pressure
One of the most immediate threats stems from the disruption of global supply chains. Sri Lanka’s key industries, including textiles, apparel, and electronics components, are heavily reliant on imported raw materials. The U.S. tariffs on Chinese and other foreign goods increased global production costs, leading to delays and price hikes that affect Sri Lankan exporters.
“These disruptions trickle down,” says an economist at the Central Bank of Sri Lanka. “Higher input costs and reduced access to affordable materials can hurt the competitiveness of our exports.”
Falling Global Demand Hits Exports
Trump’s tariffs contributed to broader economic uncertainty, weakening global trade and slowing growth. This downturn has lowered demand for Sri Lankan goods, particularly in Western markets. Apparel exports, which account for over 40% of Sri Lanka’s total exports and rely heavily on U.S. consumers, are especially vulnerable.
“As American retailers reevaluate their sourcing strategies, Sri Lankan garment manufacturers face increased competition from countries like Vietnam and Bangladesh, some of which benefit from more favourable trade agreements,” notes a trade policy analyst in Colombo.
Foreign Investment and Tourism at Risk
The trade tensions also made investors more cautious, leading to a decline in foreign direct investment (FDI) in emerging markets. Sri Lanka, already grappling with high debt levels and political instability, may find it increasingly difficult to attract investment in its export-oriented industries and infrastructure projects.
Tourism a vital source of foreign exchange could also see knock-on effects. Global economic instability tends to reduce travel spending, which directly impacts Sri Lanka’s tourism sector.
Regional Spillovers from China and India
China, a key trading partner and infrastructure investor in Sri Lanka, was one of the main targets of Trump’s tariffs. As Chinese economic growth slows due to reduced U.S. trade, its demand for Sri Lankan commodities and its ability to invest abroad could also decline. Similarly, any reduction in India’s economic engagement due to trade tensions with the U.S. may impact regional cooperation and investment flows.
Out of the Trade Bloc Loop
Perhaps, more concerning in the long term is the global realignment of trade alliances. As the U.S. withdrew from multilateral trade deals and others like the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gained momentum, Sri Lanka risks being left behind.
A Wake-Up Call for Trade Policy Reform
The indirect but significant threats posed by Trump-era tariffs underline the urgent need for Sri Lanka to diversify its markets, join new trade alliances, and upgrade its export infrastructure.
While the Trump administration, the shift towards economic nationalism and trade protectionism continues to influence global policy. Sri Lanka, as a small and open economy, must adapt quickly or risk falling further behind.
By M. I. D Perera,
Economist
-
Features7 days ago
Searching for George Keyt
-
Features7 days ago
The Strategic Imperative:Why Sri Lanka Could Transform Indo-Pacific Security Through Space
-
Life style7 days ago
Behind the sparkle
-
Business5 days ago
Dialog Enterprise strengthens data protection and cybersecurity with ISO/IEC 27017 and ISO/IEC 27018 certifications
-
Business6 days ago
Cargills Bank Q1 PAT rises to Rs. 162 million, up Rs. 116 million
-
Editorial4 days ago
Expediency vs. Public duty
-
Midweek Review4 days ago
Journalistic Brilliance Joins Humanity
-
Business4 days ago
Ethical AI and responsible leadership in emerging markets