Sri Lanka’s trade negotiations with the United States (US) to finalise a deal over reciprocal tariffs are 95% complete, as the island nation tries to expand the zero-rated list of items exported to the US, Economic Development Deputy Minister Prof. Anil Jayantha Fernando said.

Speaking to TV Derana on Monday (4), he said that trade talks between Sri Lanka and the US are not yet finalised, even though the US has announced a reduced rate of 20%, which will come into effect on 7 August.

“Discussions are still ongoing at the last stage; we have not yet signed an agreement,” he said.

Fernando added that until a final agreement comes into effect through a joint statement by both nations, all the zero-rated preferential items will be charged a 20% tariff, while other products which had a tariff earlier will be charged the previous rate plus the 20% rate.

He noted that the tariff rate could even drop further depending on things Sri Lanka could offer to the US.

“It (tariffs) cannot be avoided as a whole, but some items could be exempted from the tariffs based on the negotiation outcome,” Fernando said.

He added that Sri Lanka is trying its maximum to expand the preferential list of zero-rated export items to the US.

Moreover, he said that the negotiations are completed 95% and the discussion on what Sri Lanka could offer mainly relied on the possible adjustments to CESS, PAL, and Custom Import Duties on US Imports.

Last month, Fernando said that the US has offered a list of 1,161 goods that are being exported to the US from Sri Lanka and has offered a zero tariff on 80% of those goods.