Sri Lanka Awaits U.S. Reply on Tariff Talks

COLOMBO (News 1st); Acting Minister of Finance Dr. Anil Jayantha, announced that Sri Lanka expects a formal response from the United States by August 1st regarding ongoing discussions to reduce tariff rates.

Speaking to media following a public event in Gampaha, Dr. Jayantha emphasized that the government had already presented its proposals and is awaiting feedback. “We previously reduced the rate from 44% to 30% through consistent dialogue. Talks are still ongoing, and we expect a response by the 1st,” he said.

When questioned about oil imports from the U.S., the Minister clarified that Sri Lanka would only consider purchases at competitive market prices. 

“We won’t pay more than what’s available in other markets. That’s not practical,” he added, noting that discussions are focused on balancing the trade deficit through strategic imports.

Dr. Jayantha also addressed the government’s attention toward reducing VAT. He stated that due to a broadened tax base, existing planned taxes are being collected effectively, eliminating the need for new tax categories.

“We are exploring whether VAT can be reduced further. As a responsible government, we aim to stabilize revenue while delivering benefits to the public,” he said.