Following President Donald Trump’s imposition of a 44 per cent tax on the island, Sri Lanka has asked India to increase the export quota under the Indo-Lanka Free Trade Agreement from the current 8 million units to 50 million, according to Foreign Minister Vjitha Herath.
On Tuesday, Minister Herath told Parliament that the reciprocal tax levied by the United States had impacted Sri Lanka’s exports. The nation responded by holding talks with India and pointing out that the Indo-Lanka Free Trade Agreement’s current 8 million-piece quota is being used to its fullest.
Sri Lanka has asked the Indian Government to raise the apparel export quota to 50 million pieces, pointing out that the agreement was signed 25 years ago and the market has grown significantly since then. Alternatively, the country has requested support to boost exports by US $ 500 million.
When it comes to exporting to the United States, India has a significant lead over Sri Lanka, which accounts for 44 per cent. A number of Sri Lankan companies also exported to other countries from India.
