🇺🇸🇱🇰 US Ready to Restart Tariff Talks with Sri Lanka 📈

US Under Secretary of State Allison Hooker has informed President Dissanayake that the US is ready to restart tariff negotiations with Sri Lanka. This comes amidst concerns over new US tariffs impacting Sri Lanka's economic recovery. • The US affirms support for Sri Lanka's post-Ditwah recovery, aiming to enhance tourism, trade, and maritime operations between the nations. • Economic Outlook: The Asian Development Bank (ADB) warned in October that new US tariffs on apparel and rubber exports could slow Sri Lanka's recovery in 2026. • While 2024-2025 growth is projected at 3.9% (driven by manufacturing, construction, services), the ADB forecasts a slowdown to ~3.3% in 2026 due to weaker external demand and job losses. • Impact: The Institute of Policy Studies (IPS) estimates a 20% reciprocal tariff could cut export earnings by US$634 million and threaten nearly 16,000 apparel-sector jobs. • Sri Lanka's Position: President Dissanayake seeks market access, climate financing, and technology partnerships, offering the US a "strategically placed, stable, democratic partner in the Indo Pacific."