Sri Lanka bans forced‑labour imports under US trade pressure

On 10 July 2026 President Anura Kumara Dissanayake signed a gazette that immediately prohibits the import of any goods wholly or partly produced with forced labour. The move responds to a U.S. threat to impose a 12.5 % tariff on Sri Lankan exports under Section 301 of the Trade Act, and it requires importers to provide certified documentation to customs.

The regulation aims to safeguard U.S. markets, counter perceived Chinese supply‑chain advantages, and could affect Sri Lanka’s key export sectors such as apparel, textiles and agricultural products. At the same time, World Bank Country Manager for Sri Lanka and the Maldives, Gevorg Sargsyan, urged the country to boost export competitiveness, noting low labour productivity and calling for lower business costs, wider market access and higher‑quality foreign investment. He spoke at the Exporters Association of Sri Lanka’s annual meeting, where new officers were elected to lead the association.

Both developments highlight Sri Lanka’s effort to align with international labour‑right standards while seeking to strengthen its export sector amid ongoing economic recovery.