Sri Lanka, July 24 -- Reduced tariff welcomed, but new challenges emerge

Sri Lanka's export sector has secured a reduction in tariffs imposed by the United States, with exports now subject to a 10% tariff instead of the previously announced higher rate.

However, economist Professor Rohan Samarajiva has warned that the new requirement to prove exports are free from forced labour-related inputs could create additional costs for businesses and weaken demand in Sri Lanka's largest export market.

The tariff reduction followed Washington's introduction of a new set of trade penalties targeting 60 countries over concerns related to forced labour practices.

During bilateral trade discussions, Sri Lanka introduced a national ban on goods produ...