3 hours Ago By Sahan Weerasooriya
The Commonwealth may offer ‘a glimpse of hope for Sri Lanka to overcome effects of US tariffs’, says former chairman, British- Sri Lanka Chamber of Commerce, London, Jayampathi Perera (Jay). ‘As Sri Lanka grapples with the high tariff imposed by the US’ Donald Trump administration, the Commonwealth, a voluntary association with 56 nations, many of which share historical ties and economic cooperation could offer a valuable life line for us in the long term. Although the US has given a period of just 90 days until they consider the next round of tariffs, now is the time for us to consider alternatives, Perera explained.
Perera added: ‘While the US has traditionally been a significant trading partner, especially for garments and tea exports, overdependence on such a single market can prove risky and we are already experiencing such a situation. ‘The Commonwealth provides a platform for trade diversification, allowing Sri Lanka to strengthen economic ties with other member countries, especially in Africa and elsewhere to conduct safe business with comparative ease. ‘These countries share legal frameworks and business standards and could not only ease market access but also present safe business platforms to establish joint ventures for the future.
‘Several Commonwealth nations have preferential trade agreements with developing member states. ‘For instance, the UK’s Developing Trading Scheme (DCTS) offers duty free access for many Sri Lankan goods. Provided we concentrate on a priority list of products that can compete with others in a highly competitive market, we may be able to offset some of the negative impacts of US tariffs.
’ ‘Beyond trade, Commonwealth collaboration also promotes investment, capacity building and technical assistance. Sri Lanka can leverage these partnerships to boost local industries, enhance value -added production and improve competitiveness in global markets. ‘Sri Lanka can tap into business networks and regional cooperation opportunities, particularly in South East Asia and Africa, to explore new markets and foreign direct investment.
‘During the recently held Commonwealth Trade and Investment Summit, April – 2025 London (CTIS), I did manage to present my own idea of presenting Sri Lanka as a viable manufacturing partner for the Commonwealth. ‘My idea was overwhelmingly shared by Lord Marlon, Chair of the organisation and was supported by many members of the Committee who immediately sat with me for a round table discussion. ‘Lord Marlon himself is very keen to provide assistance to Sri Lanka and has requested me to introduce any Sri Lankan company who needs assistance in identifying strong business partners in respective countries.
‘Although some in Sri Lanka might find fault with this idea of diluting our production capabilities by extending production into foreign territories, with the current global situation and the possibility of losing GSP+ status in the near future, for Sri Lanka this might be a lifeline to stay in business. ‘Furthermore, Sri Lankan apparel manufacturers with decades of experience behind them with access to reliable quality fabric, supported by well-oiled logistics and compliance systems with most experienced managers, trainers and operational consultants’ can certainly add value to this whole process. ‘Considering some African countries such as Lesotho, Kenya, the Cameroons, Rwanda and many more benefiting from AGOA (African Growth and Opportunity Act), which allows duty-free access to the US for many goods, including textile and apparel, this avenue might provide joint ventures to maintain sales.
‘May be that’s why some major players of Sri Lanka’s apparel industry have already shifted their production to Kenya. ‘Sri Lanka’s engagement with the ommonwealth offers an alternative path forward and by strategically leveraging these partnerships, the nation could not only cushion the economic blow but also lay the foundation for a more diversified and resilient trade future.’ by Hiran Senewiratne.
