When the U.S. announced a hefty new 54% tariff on Sri Lankan exports this week, it sent shockwaves through an economy still reeling from crisis. The move could devastate the island’s apparel industry—a lifeline for over 360,000 workers and their families. 😱
"This isn’t just about trade numbers—it’s about survival," says Yasiru Ranaraja, a Sri Lankan researcher and Belt and Road Initiative expert. With $3 billion in annual exports to the U.S. at risk, the tariffs target textiles and clothing, which make up nearly a quarter of Sri Lanka’s total exports. 🤯
Here’s the crunch: Many apparel factories operate on razor-thin margins. Buyers may now shift orders to cheaper markets unless Sri Lanka slashes costs—a move that could crush workers already earning minimal wages. Over 70% of those affected are women, often the sole earners in rural households. 💔
Experts warn the tariffs could erase Sri Lanka’s $3 billion trade surplus with the U.S., worsening its financial stability after defaulting on debt in 2022. Will global brands step up to support suppliers? Or will Sri Lanka’s recovery hit another roadblock? 🚧
Analysis by Yasiru Ranaraja for CGTN. Views expressed are the author’s own.
