US Proposes 12.5% Labour Tariffs on Sri Lanka; Ceylon Chamber Urges Action 📉

The Ceylon Chamber of Commerce has expressed deep concern over a proposed 12.5% labour-related tariff by the United States on Sri Lankan exports, warning it could severely harm the island's economic recovery. • The Tariff Impact: The 12.5% rate puts Sri Lanka at a distinct disadvantage against competing nations, which face a lower tariff rate of 10%. This comes despite ongoing bilateral discussions following a prior suspension of reciprocal tariffs. • Export Slowdown: The proposed trade barrier hits at a critical juncture. According to provisional data for the first four months of 2026, Sri Lanka’s key goods exports are already struggling, with apparel & textiles down by 7% and tea down by 6%. • National Context & Reputation: The Chamber emphasized that the tariffs undermine Sri Lanka's established reputation as an ethical, responsible sourcing destination that adheres to high global labour, environmental, and governance standards. • Call to Action: The government is urged to engage proactively at the highest levels with US authorities to clarify the basis of the tariff, secure a reduction to the lower 10% band, and ultimately push for its complete removal to safeguard national employment and investment.