🛡️ CUBA Warns Against Rushing Tariff Dismantling

• The Ceylon United Business Alliance (CUBA) urges Sri Lanka not to dismantle tariffs or para-tariffs under the new Economic Stabilisation Act until the nation's foreign exchange (forex) reserves secure a sustainable and safe threshold. • CUBA argues that unilateral liberalisation amid severe forex pressures risks inviting a surge of cheap imports, weakening the rupee, and undermining domestic industries. • The current tariff policy is highlighted as "economically indefensible" due to extreme unevenness: Politically connected sectors (hardware, building materials) face very high para-tariffs (40-75%). • In contrast, a major domestic consumption sector, clothing (worth over US$ 2 Bn annually), remains severely under-protected with para-tariffs of only 5-10%. This disparity must be corrected immediately. • Policymakers are urged to introduce WTO-compliant non-tariff barriers, including quality standards and safeguard clauses, ensuring protection while linking tariff liberalisation directly to a clear foreign reserve threshold.