The Sri Lankan government is holding a virtual discussion with the US Trade Representative today (18) with the aim of reducing the proposed tariffs by the United States.

The meeting includes the Secretary to the Ministry of Finance, Dr. Harshana Suriyapperuma, along with other relevant government officials.

This crucial discussion follows US President Donald Trump's official notification to Sri Lanka on July 12, announcing a 30% tariff imposition on Sri Lankan exports to the US.

This rate represents a 14% reduction from the initial 44% announced by Trump in April.

Several countries have already successfully secured lower tariff deals with the United States.

For instance, Indonesia negotiated a reduction from 32% to 19%, while Vietnam achieved a significant decrease from 46% to 20%.

Furthermore, President Trump has indicated that Washington and Delhi are "very close" to finalising a comprehensive trade deal.

Against this backdrop, Sri Lanka is reportedly aiming to reduce its tariff rate to 20% during these renegotiations.

Industries such as the Coconut and Rubber sectors favour a 20% rate, believing it would significantly enhance the competitiveness of their products in the US market.

However, Free Trade Zones Manufacturers are advocating for an even lower tariff, ideally pushing for at least a 10% rate.