📈 Sri Lanka Bans Forced Labour Imports to Protect US Trade Access

The Government of Sri Lanka has prohibited the import of goods produced using forced labour, effective July 10, 2026. The move aims to strengthen international trade compliance and mitigate the risk of severe US tariff hikes. • New Customs Regulations: Issued by President Anura Kumara Dissanayake in his capacity as Finance Minister, the directive mandates importers to submit documentary evidence to the Director General of Customs certifying that imports are free from forced labour. • The US Tariff Threat: The policy responds to the Office of the US Trade Representative (USTR), which flagged Sri Lanka among 60 economies lacking enforced bans on forced labour imports. The USTR proposed an additional 12.5% tariff on Sri Lankan exports, higher than the 10% rate proposed for regional competitors like Bangladesh and Pakistan. • Impact on Key Sectors: The US is Sri Lanka's largest export market, bringing in approximately US$ 3 Bn in annual revenue. This market is heavily dominated by the apparel & textiles sector, making compliance critical to maintaining competitive market access and protecting national employment. • Broader Compliance: Finance Deputy Minister Dr. Anil Jayantha Fernando noted that while domestic labour laws are robust, Customs screening will be tightened to eliminate child and forced labour concerns. This follows Sri Lanka’s ratification of the International Labour Organisation’s (ILO) Convention No. 190 in April, aimed at securing ethical supply chains.