Colombo | The US has announced a 20 per cent tariff on Sri Lankan exports, marking a 24 per cent reduction from the initial rate proposed for the island nation.

As the deadline for tariff negotiations ending on Friday, Sri Lankan officials were continuing talks to seek a further reduction.

The tariffs will go into effect on August 7.

In April, US President Donald Trump slapped a 44 per cent tariff on Sri Lankan goods, half of the 88 per cent duty Colombo had levied on US imports.

The rate was then reduced to 30 per cent last month.

Sri Lankan exporters who ship goods worth around USD 3 billion annually to the US were expecting tariffs below 20 per cent to remain competitive with regional rivals such as Vietnam and Bangladesh