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In a strategic move to boost bilateral trade and reduce the widening trade gap, the United States has dispatched crude oil samples to Sri Lanka. The aim is to evaluate the feasibility of fuel trade between the two nations.
The Sri Lankan government has shown interest in purchasing U.S.-produced West Texas Crude (WTC) if it proves to be cost-effective. Accordingly, the Ceylon Petroleum Corporation (CPC) has requested samples for testing.
However, CPC Chairman D.A. Rajakaruna confirmed that the samples, sent via courier due to their hazardous nature, are unlikely to reach Sri Lanka before August 1. This delay makes it difficult to finalize any trade agreement ahead of the expected implementation of new U.S. tariffs on Sri Lankan exports.
The U.S. has already imposed a 30% tariff on Sri Lankan products, but has granted time until August 1 for potential negotiations, provided Sri Lanka takes steps to address the current trade imbalance.
Meanwhile, President Anura Kumara Dissanayake held a virtual discussion with U.S. Trade Representative Jamieson Greer, focusing on tariff reductions and enhancing trade and investment ties.
The International Monetary Fund (IMF) also weighed in, with its mission chief Evan Papageorgio warning of growing risks to Sri Lanka’s economic outlook due to looming tariffs, policy uncertainties, and geopolitical tensions. He stressed the urgency of continuing structural reforms to protect the nation’s hard-won economic recovery.
