COLOMBO, July 10 (Xinhua) -- Sri Lanka will continue talks with U.S. officials to secure further reductions in tariffs, a senior official said on Thursday.
Central Bank Governor Nandalal Weerasinghe said at a press conference that the United States has reduced tariffs on Sri Lankan exports from 44 percent to 30 percent.
He noted that the current 10 percent tax rate will remain in place until Aug. 1, and the government will use this period to seek an even lower tariff.
Weerasinghe explained that at 30 percent, Sri Lanka faces a lower tax rate than many of its competitors in the U.S. market. However, he acknowledged that Sri Lankan exports, like those from other countries, will still feel the impact of the new taxes.
He added that the government is working to diversify export destinations, but the process will take time.
Sri Lanka's GDP could decline by up to 1.5 percent if the United States reinstates a 44-percent tariff on Sri Lankan exports and lowers tariffs on competitor trading partners, according to a recent report released by the International Monetary Fund. ■
