### US Tariffs: Sri Lanka Faces Regional Competitiveness Gap 📈

The Opposition has raised concerns over Sri Lanka's current trade position, noting that the country now faces higher US import duties on apparel compared to its regional peers. This follows recent trade deals secured by competitors that have realigned the South Asian export landscape. • Comparative Tariff Rates India: 18% (following a recent interim trade framework). Bangladesh: 19% (reduced from 20% under a new reciprocal agreement). Sri Lanka: 20% (current reciprocal rate as of February 2026). • Impact on the Apparel Sector Garments constitute approximately 70% of Sri Lanka’s total exports to the US. The 20% tariff, while lower than the initially proposed 44%, remains a significant barrier compared to the concessions secured by India and Bangladesh. Industry analysts warn that even a 1-2% difference in duties can shift major orders to regional alternatives, threatening the 300,000+ jobs within the apparel & textiles industry. • Economic Risks Based on provisional projections, the sector could face potential export losses of up to US$ 220 Mn annually under the 20% regime. Competitors like Bangladesh have also secured "zero-tariff" clauses for specific goods made with US-sourced raw materials, further widening the competitiveness gap. _Note: This summary is based on current market data and official statements as of February 13, 2026._