Sri Lanka's garments sector is pinning its hopes on further discussions with the U.S. government after Donald Trump's administration's 30% tariff on the nation has placed it at a disadvantage to some of its biggest rivals.

Sri Lanka will continue talks with Washington for further reduction in tariffs, after US President Donald Trump imposed a lower-than-proposed 30% levy on the South Asian nation.

In a post on Truth Social, President Trump said these tariffs on Sri Lanka will kick in from August 1 and warned the country against transshipping to evade the levies.