Connect with us

News

US tariffs : Ranil highlights remedial measures

Published

on

Former President Ranil Wickremesinghe has warned of severe economic repercussions for Sri Lanka rising from the trade war between the US and China.

In a statement, he states, “The U.S’ so-called “reciprocal” tariff and China’s retaliatory tariff on the U.S. have started a trade war. It brings to an end a globalisation and the WTO rules supporting it.”

He also adds that the “worst affected will be small countries like Sri Lanka with economies on the export of one or two commodities, with the US being a major market.”

He has noted several measures that may be considered in determining remedial action.

Full statement:

The U.S’ so-called “reciprocal” tariff and China’s retaliatory tariff on the U.S. have started a trade war. It brings to an end a globalisation and the WTO rules supporting it.

It will now lead to an uncertain period of the major economic powers, either challenging each other and/or cooperating with them. In this breakdown of the present world order, the worst affected will be small countries like Sri Lanka with economies on the export of one or two commodities, with the US being a major market.

Even after negotiations the tariffs will not return to pre-April 2nd levels. This will bring about a disruption in Sri Lanka’s exports, resulting in factory closures and large scale lay-offs, which may according to industry even be about 100,000. Similarly, the widening trade deficits will bring about a current account deficit. With the overall external trade being affected, the government will not be able to achieve the revenue estimated from duties and excise.

There is a strong possibility of political upheavals taking place due to the deteriorating economic situation, not only Sri Lanka but also in the neighbouring countries. Consideration may be given to the following measures in determining
remedial action.

1) In June 2024 the Cabinet of Ministers approved the National Tariff Policy
which was to be introduced in January 2025. With a simplified four band tariff regime (of 0%, 10%, 20% 30%) to be implemented from the 1st of January 2025. Many of the para-tariffs were to be removed, and the tariff regime was to be based on the principles of transparency, consistency and predictability. The Cabinet also approved the Trade National Single Window to be fast-tracked for implementation in 2025, addressing the non-trade barrier. So far these have not been implemented.

2) Under the proposed GSP Plus with EU, Sri Lanka together with seven countries form a duty free zone. In order to qualify for GSP Plus, we have to become parties to the following 27 conventions.

1. International Covenant on Civil and Political Rights2. International Covenant on Economic Social and Cultural Rights
3. International Convention on the Elimination of All Forms of Racial Discrimination
4. Convention on the Elimination of All Forms of Discrimination Against Women
5. Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment
6. Convention on the Rights of the Child
7. Convention on the Prevention and Punishment of the Crime of Genocide
8. Minimum Age for Admission to Employment (N° 138)
9. Prohibition and Immediate Action for the Elimination of the Worst Forms of Child
Labour (N° 182)
10. Abolition of Forced Labour Convention (N° 105)
11. Forced Compulsory Labour Convention (N° 29)
12. Equal Remuneration of Men and Women Workers for Work of Equal Value
Convention (N° 100)
13. Discrimination in Respect of Employment and Occupation Convention (N° 111)
14. Freedom of Association and Protection of the Right to Organise Convention (N° 87)
15. Application of the Principles of the Right to Organise and to Bargain Collectively.
Convention (N° 98)
16. International Convention on the Suppression and Punishment of the Crime of
Apartheid
17. Montreal Protocol on Substances that deplete the Ozone Layer
18. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes
and Their Disposal
19. Stockholm Convention on persistent Organic Pollutants
20. Convention on International Trade in Endangered Species
21. Convention on Biological Diversity22. Cartagena Protocol on Biosafety
23. Kyoto Protocol to the UN Framework Convention on Climate Change24. UN Single Convention on Narcotic Drugs (1961)
25. UN Convention on Psychotropic Substances (1971)26. UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances
(1988)
27. Mexico UN Convention Against Corruption
We are parties to many of these Conventions, if not all. Therefore, the Government must take immediate steps to negotiate with EU when they
visit Sri Lanka in May.

3) The Government must also take all steps to conclude the ECTA negotiations
with India, within 3 months so as to access the Indian markets.

4) Implement the Thailand-Sri Lanka Free Trade Agreement immediately.

News

COVID subvariants spreading in Asia detected in Sri Lanka

Published

on

By

The Medical Research Institute of Sri Lanka has confirmed that the COVID-19 variant currently spreading in the Asian region has also been identified in the country.

Dr. Jude Jayamaha, a specialist in viral diseases at the Medical Research Institute, stated that patients infected with the Omicron subvariants LF.7 and XFG are being reported locally.

Dr. Jayamaha explained that this finding was confirmed through research conducted on biological samples collected from several hospitals across the island.

However, he emphasized that there is no need for undue fear regarding these COVID-19 variants.

Health authorities have also stressed the importance of vulnerable groups—such as pregnant mothers, the elderly, and those with chronic illnesses—following health guidelines, including wearing face masks and avoiding crowded places.

Dr. Jayamaha reiterated that new COVID-19 variants emerge periodically, and health authorities are continuously monitoring the situation, so the public should remain calm.

(newswire.lk)

(This story, originally published by newswire.lk has not been edited by SLM staff)

Continue Reading

News

Anudi misses out from Miss World Quarter-Finals

Published

on

By

The Miss World organization has announced its quarter-finalists, selecting 40 contestants from across Asia, Europe, Africa, and the Americas.

Sri Lanka’s Anudi Gunasekara, was not selected in the top 40, despite being recognized for her impressive performances in the Multimedia and Head-to-Head challenges.

The top 40 consisted of 10 contestants each from Asia & Oceania, Europe, Africa and the Americas.

Continue Reading

News

Fuel prices unchanged

Published

on

By

The Ceylon Petroleum Corporation (CPC) announced that there will be no revision of fuel prices for the month of June 2025.

Accordingly, all fuel prices will remain unchanged for June, it said.  

Existing fuel prices (per litre):

Auto Diesel – Rs. 274
Super Diesel – Rs. 325
Petrol 92 Octane – Rs. 293
Petrol 95 Octane – Rs. 341
Kerosene – Rs. 178

Continue Reading

Trending

Copyright © 2024 Sri Lanka Mirror. All Rights Reserved