The Ceylon Chamber of Commerce (CCC) on Thursday (04) expressed concern over a proposed 12.5% labour-related tariff by the United States on exports from several countries, including exports from Sri Lanka, warning that the move could place additional pressure on key export industries.
In a statement, the Chamber said the proposal comes while discussions are continuing with the United States following the suspension of previously announced reciprocal tariffs and efforts to secure a more favourable trading arrangement.
Competitiveness Concerns for Exporters
According to the CCC, the proposed tariff could weaken the competitiveness of exporters compared to countries facing a lower tariff rate of 10%.
The Chamber noted that export-oriented industries are already operating in a challenging environment. Any additional trade barrier could increase costs and make products less competitive in one of the country’s most important export markets.
The United States remains a major destination for exports, particularly for sectors such as apparel, tea, and manufacturing.
Export Growth Efforts Face New Challenge
The Chamber pointed out that the development comes at a time when policymakers and businesses are working to expand exports, attract investment, and create employment opportunities.
The statement also highlighted recent export performance figures, noting that apparel exports declined by 7% during the first four months of 2026, while tea exports fell by 6% over the same period.
Against that backdrop, business leaders argue that maintaining access to international markets on competitive terms is becoming increasingly important.
Chamber Calls for High-Level Engagement
The CCC urged authorities to engage proactively with the United States to better understand the basis of the proposed tariff and present the country’s position.
“It is important that Sri Lanka seeks to return to the lower tariff band while continuing discussions towards achieving a more competitive and predictable trading environment,” the Chamber said.
The organisation also stated that every effort should be made to secure a reduction in the proposed tariff and ultimately seek its removal.
Focus on Responsible Sourcing
The Chamber noted that many export industries have built a reputation as responsible sourcing partners by maintaining labour, environmental, and governance standards.
According to the statement, businesses have also made progress in strengthening regulatory frameworks and promoting ethical business practices.
Given the importance of the US market, the Chamber said timely engagement and clear communication on the way forward will be important in maintaining confidence among exporters and investors.
The CCC added that it stands ready to work with policymakers and other stakeholders to support efforts aimed at protecting export competitiveness and long-term economic interests.
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Last modified: June 9, 2026
