Sri Lanka’s apparel sector faces up to $290 million loss from US tariffs

Sri Lanka’s apparel sector could lose between $110 million and $290 million in export earnings due to recently imposed high US tariffs, according to new data from First Capital Research (FCR).

The newly adjusted 30% tariff rate, though reduced from an initial 44%, keeps Sri Lankan products priced well above those from regional competitors. The US accounts for nearly 40% of Sri Lankan garment exports, making the new tariff a major challenge.