As part of efforts to narrow the trade imbalance, the United States has dispatched samples of its crude oil to Sri Lanka to assess suitability for local fuel requirements, a senior official confirmed.
Sri Lanka had expressed interest in importing U.S.-produced West Texas Crude (WTC) if deemed cost-effective. Following this, the Ceylon Petroleum Corporation (CPC) requested test samples. CPC Chairman D.A. Rajakaruna stated that the crude samples were sent via courier, but due to restrictions on transporting hazardous materials by air, delivery is expected to take several weeks.
Given the delay, Rajakaruna said that Sri Lanka would be unable to finalize any fuel import decisions from the U.S. before August 1—the deadline set for negotiations over new tariffs on Sri Lankan exports entering the U.S. market.
Currently, a 30% tariff is imposed on Sri Lankan goods exported to the United States. However, a grace period has been granted until August 1 to explore options for reducing the tariffs if Sri Lanka takes meaningful steps to address the trade deficit, which currently favours Sri Lanka.
In parallel, President Anura Kumara Dissanayake held a virtual meeting with U.S. Trade Representative (USTR) Jamieson Greer to discuss the potential revision of these tariffs and to strengthen bilateral trade and investment ties.
The development comes amid broader concerns highlighted by the International Monetary Fund (IMF). Concluding a recent mission to Sri Lanka, IMF mission chief Evan Papageorgiou warned that while the country’s economic outlook remains broadly positive, significant downside risks persist. These include the possibility of high tariffs on exports, ongoing trade policy uncertainty, and escalating geopolitical tensions.
Papageorgiou emphasized the importance of sustaining reform momentum and rebuilding fiscal and external buffers. He noted that any external shocks would be managed within the framework of Sri Lanka’s existing Extended Fund Facility (EFF) programme.
