Sri Lankan authorities have informed the International Monetary Fund (IMF) that they cannot meet the export target of an additional USD 3 billion due to the potential impact of the US-China trade war on key exports like textiles, rubber, and coconut. They have requested a grace period for the condition until an alternative solution is found.
Additionally, Sri Lanka has revealed that the actual rate of the reciprocal tax imposed by US President Donald Trump is 54%, not 44% as previously reported. The government has appealed to the US to reconsider the tax rate, citing the burden it places on Sri Lanka’s export sector and overall economic growth. A special envoy is expected to travel to the US for further discussions.