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Sri Lanka Cushions U.S. Tariff Shock, Faces Twin EU Compliance Tests

    ​​​​​​​Sri Lankan rubber and rubber products exports held their ground in June 2025, despite facing a daunting 44% tariff on shipments to the US, one of the largest destinations for Sri Lankan rubber-based exports. The island nation’s exporters have since been able to heave a sigh of relief with their government negotiating with the US Administration and successfully bringing down the tariffs first to 30% in July, and then to 20% in August.

    Highlights

    • June exports dipped 1.04% YoY but rose 11% month-on-month
    • Sri Lanka uses diplomacy to safeguard US$300 million US market
    • Domestic Reforms, EU market access next on agenda