Ceylon Chamber of Commerce Calls on Government to Act Fast Over US Labour Tariff Threat

The Ceylon Chamber of Commerce has raised the alarm over a proposed 12.5 per cent labour-related tariff announced by the United States, urging the Sri Lankan government to engage swiftly with Washington to protect the country's vital export industries.
A Critical Moment for Sri Lankan Exports
The Chamber, which represents a broad spectrum of Sri Lanka's business community, has expressed serious concern over the potential economic impact of the proposed American tariff measure. The levy, tied to labour standards, could significantly affect Sri Lankan exporters who depend heavily on the United States as one of their most important international markets.
In a strongly worded appeal, the Chamber called on the government to initiate high-level diplomatic and trade discussions with US authorities without delay, stressing that early engagement would be key to safeguarding the country's export competitiveness.
Exporters Face Mounting Pressure
Sri Lanka's export sector, particularly the apparel and garment industry, relies substantially on access to the American market. Any additional tariff burden could erode the price competitiveness of Sri Lankan goods, potentially diverting buyers toward rival nations not subject to such measures.
- The proposed tariff stands at 12.5 per cent and is linked to labour-related conditions set by the United States.
- Sri Lanka's garment and textile sector is among the most exposed industries should the tariff be enforced.
- The Ceylon Chamber has stressed the need for a coordinated government response involving trade and foreign affairs ministries.
Chamber Urges Proactive Diplomacy
The Ceylon Chamber of Commerce has called on relevant government authorities to engage proactively with their US counterparts, emphasising that a timely and strategic response is essential to minimising any adverse impact on Sri Lankan businesses and workers.
The Chamber also noted that Sri Lanka must position itself as a responsible and compliant trading partner, highlighting the country's existing commitments to labour rights and international standards as part of any diplomatic outreach.
With Sri Lanka still navigating its post-economic crisis recovery, the stakes are particularly high. A disruption to export revenues at this stage could undermine hard-won economic gains and place additional pressure on the country's balance of payments.
Government Response Awaited
As of the time of reporting, the government had not issued a formal response to the Chamber's appeal. Industry stakeholders and exporters are watching closely, hoping that authorities will act decisively to open dialogue with Washington and negotiate terms that protect Sri Lanka's economic interests on the global stage.