As the Trump administration leverages tariffs as a strategic tool to regulate trade, targeting countries with trade deficits under its new foreign policy, MP Ravi Karunanayake has raised concerns about the implications for Sri Lanka. He has questioned Minister of Finance, President Anura Kumara Dissanayake, on strategies to safeguard and advance the country’s textile and apparel industry, as well as general merchandise exports.
Raising his concerns under Standing Order No. 27 (2), Karunanayake has specifically inquired whether the government has assessed the potential impact of US de-globalization policies and possible tariff increases on Sri Lanka’s exports.
The MP submitted 12 key questions to the Finance Minister, seeking clarity on the government’s trade strategy:
- Has the government assessed how US de-globalization policies and potential tariff hikes could impact Sri Lanka’s general exports, including textiles and apparel?
- Given Sri Lanka’s vulnerable post-bankruptcy status, can the government enhance its negotiation efforts to secure special trade concessions from President Trump’s administration?
- What measures are being taken to sustain and expand Sri Lanka’s market access in the US under the Generalized System of Preferences (GSP) or alternative trade arrangements?
- Has Sri Lanka engaged in discussions with the United States Trade Representative (USTR) or other US authorities to ensure competitiveness in the US market while minimizing tariff risks?
- Amid uncertainties in US trade policies, what steps is the government taking to diversify export markets and reduce reliance on the US as a primary buyer of Sri Lankan textiles?
- Has the government explored foreign direct investment (FDI) opportunities or alternative trade agreements to strengthen Sri Lanka’s textile industry amid global protectionist trends?
- Will the government keep Parliament informed of emerging risks and the countermeasures it plans to implement?
- Considering that maintaining low production costs could keep Sri Lanka’s textile exports competitive despite tariffs, is the government engaging in discussions with industry stakeholders on this issue?
- While tariffs pose challenges, they also present opportunities for strategic adjustments. What initiatives, if any, has the government undertaken to mitigate risks while capitalizing on potential benefits?
- How does the government plan to facilitate these strategic adjustments through policy interventions and support programs?
- What steps are being taken to protect and support the textile industry and its workforce amid anticipated tariff hikes?
- Can the government leverage Sri Lanka’s strategic geographical position to attract US investors and position the country as a prime destination for FDI?
MP Ravi Karunanayake’s questions highlight the urgent need for a proactive trade policy to navigate the evolving global trade landscape and ensure Sri Lanka’s economic resilience.
