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Trade | Economy

Sri Lanka Bans Imports Made With 'Forced Labour' Amid US Tariff Threat

Published Monday, 13th July 2026 10:39 AM ● By

MONETABRIEF – Sri Lanka has issued a gazette notice banning the import of goods made with forced labour, shortly after the United State threatened to impose tariffs on goods exported form the island, claiming gaps in combatting the activity.

Regulations signed by President Anura Kumara Dissanayake as Finance Minister said the import of goods that are "mined, produced or manufactured, wholly or partly" with forced labour was prohibited.

The regulations said the minister may from time to time notify goods, entities or countries to which the regulations apply, "having regard to determinations of the International Labour Organization".

Importers of goods from a notified country will have to furnish documentary evidence, declarations or certification as prescribed, to the Director General of Customs.

In June, the US Trade Representative proposed that a 12.5 percent tax be imposed on imports from Sri Lanka, following a investigation into goods made using forced labour.

The USTR would conduct appeal hearings from July 07. Sri Lanka was to present its case to the USTR on July 09. (Colombo/July12/2026)