
Ease of doing business
theboardiQ Tariffs Dashboard:
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Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.

Implications
As of January 2026, the trade relationship between the US and Sri Lanka is navigating significant shifts due to a transition from generalized trade preferences to a more aggressive reciprocal tariff strategy.
Latest US Tariffs Update (2026)
Following the policy shifts initiated in late 2025, the US has moved away from the standard Most Favored Nation (MFN) rates for Sri Lanka.
Current Effective Rate: Most Sri Lankan exports now face an effective trade-weighted tariff of approximately 29.9% (up from ~10.2% in early 2025).
Sector-Specific Levies: * Apparel: Tariffs have surged to an average of 36.8%.
Rubber Products: Now face an effective rate of 20.2%.
Reciprocal Baseline: A 20% "floor" tariff was applied to all Sri Lankan goods in August 2025, which remains the baseline for 2026 as the US seeks to address its trade deficit.
Major Companies Impacted
The impact is most severe for large-scale manufacturers with high exposure to the US market (which accounts for nearly 40% of Sri Lanka's garment exports).
Company | Sector | Nature of Impact |
MAS Holdings | Apparel | High exposure; vulnerable to US sourcing shifts to Vietnam/India. |
Brandix | Apparel | Facing margin compression; exploring "near-shoring" options. |
Hirdaramani Group | Apparel | Significant pressure on the intimate wear and knit segments. |
Hayleys PLC | Rubber/Agri | Impacted by the 20.2% levy on industrial rubber and value-added tea. |
Ansell Lanka | Rubber | Potential relocation of production lines to lower-tariff regions. |
GDP and Economic Impact (2026 Forecast)
The IMF and Asian Development Bank (ADB) have adjusted Sri Lanka's growth outlook downward due to these "trade headwinds."
GDP Contraction: Analysts estimate a reduction of 0.8% to 1.5% in real GDP growth compared to the pre-tariff baseline.
Export Loss: Potential loss of $220 million to $290 million in annual export earnings from the apparel sector alone.
Growth Forecast: The ADB has revised Sri Lanka’s 2026 GDP growth down to 3.3% (previously projected at 3.9%).
Employment: Risk to approximately 100,000 direct and indirect jobs in the export manufacturing belt.
Latest Country Balance of Trade (BOT) YTD
The trade deficit has widened as import costs for fuel and vehicles rise while export growth to the US stalls.
Total Exports (Monthly Avg): ~$1.05 Billion
Total Imports (Monthly Avg): ~$1.78 Billion
Overall Trade Deficit (Nov 2025): -$731 Million
US-Sri Lanka Specific BOT: Sri Lanka maintains a surplus with the US (approx. +$225M monthly), but this surplus has shrunk by ~14% year-on-year as US demand cools under the new tariff regime.
SWOT Analysis: Sri Lanka Economy 2026
Strengths | Weaknesses |
High-quality apparel manufacturing (ethical sourcing). | Over-reliance on the US market (40% of apparel). |
Strategic location on Indian Ocean trade routes. | High external debt servicing requirements ($7B+ due). |
Resilient tourism recovery (surpassing 2019 levels). | Low diversification in the manufacturing basket. |
Opportunities | Threats |
Expanding trade with India and the EU (GSP+). | Sustained high US tariffs leading to factory closures. |
Potential to become a regional logistics and green energy hub. | Regional competitors (Vietnam/Bangladesh) having lower tariffs. |
Digitalization of the public sector to improve ease of business. | Global commodity price volatility (fuel/fertilizer). |
US Revised Tariffs
Country Tariffs
Balance of Trade
Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals
Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
US Imports Guide
United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |