A press conference was held yesterday (1) at the Department of Government Information to address the recent developments regarding reciprocal US tariffs on imports from Sri Lanka.

Clarifying the government’s position, Treasury Secretary Dr. Harshana Suriyapperuma said that Sri Lanka has maintained an open and transparent approach throughout discussions, sharing all non-sensitive details with the public. However, he emphasized that due to the diplomatic and commercial nature of the negotiations, certain aspects—particularly related to trade strategies and tax percentages—must remain confidential.

When asked whether tax concessions related to intellectual property or export quotas for Sri Lankan agricultural and fuel products had been part of the discussion, Dr. Suriyapperuma reiterated that some areas require discretion to protect ongoing negotiations.

“We focused not just on securing a lower US tariff percentage,” he explained, “but on ensuring Sri Lanka’s tax structure is competitive with regional peers exporting similar goods.” As a result, he noted, the US has agreed to a 20 percent reciprocal tariff, which places Sri Lanka on par with other countries in the region.

Dr. Suriyapperuma credited President Anura Kumara Dissanayake’s leadership for mobilizing the public and private sectors early in the process of reducing US tariffs. “The moment this opportunity was identified, the President convened industry representatives, consulted the business community, and formed a dedicated task force. This collective effort helped us reach a favorable outcome within just 90 days—a timeline that would usually take years in international trade talks.”

He noted that multiple government institutions worked intensively to provide necessary data and ensure broad-based input from businesses, exporters, and investors across the country. “This wasn’t confined to one ministry; it was a nationwide initiative,” he said. He also extended thanks to the US trade delegation and all involved for their cooperation and professionalism.

Addressing the confidentiality surrounding the discussions, he stated:
“These weren’t just bilateral talks with the US—they were part of a broader, multi-country engagement. We must protect the confidentiality of business-sensitive information to avoid undermining the negotiations. Nevertheless, the business community’s participation was vital, and their input guided our approach.”

When asked whether these negotiations would lead to a dilution of labor rights, or why direct talks with workers’ unions were not held, Dr. Suriyapperuma clarified:
“This was never about weakening Sri Lanka’s sovereignty or undercutting labor protections. Rather, it was about building a long-term strategy to strengthen our industries and integrate our businesses into the global market. We have not left any stakeholder out of the process—we did, in fact, hold discussions with industry leaders.”

He added that the broader goal with negotiations related to US tariffswas to align Sri Lanka’s trade policy with future growth, focusing on policy development, efficiency gains, and strategic global integration, while respecting national and worker interests.