The United States has requested Sri Lanka to grant duty-free access to American-manufactured vehicles including Electric Vehicles (EVs) as part of ongoing tariff negotiations between the two nations, according to a source familiar with the discussions.
The move is aimed at reducing the existing trade imbalance between the two countries, with the U.S. pushing for improved market access for its automotive sector.
While Sri Lanka did not immediately approve the proposal, the government is said to have responded positively in principle, agreeing to consider the matter in a phased approach over time.
“The request was acknowledged, but no outright commitment was given. Instead, Sri Lanka expressed willingness to assess such trade concerns gradually,” the source stated.
Officials from both countries are expected to continue their dialogue in the coming months, with a focus on reducing tariffs and promoting bilateral trade.
The talks come amid broader efforts by Sri Lanka to strengthen its economic ties with key global partners as the country works towards long-term fiscal stability and trade diversification.