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 expects to continue negotiations with the US after President Donald Trump’s decision to reduce tariffs on the island nation is seen as a “good start” by Colombo which had primarily negotiated to preserve its competitive advantage,

The impact is expected to be sharper for Sri Lanka, where 21 percent—or $618 million—of its $2.98 billion exports to the US in 2023 could now face Indian competition.