July 30, 2026
3 developments
Forced-labour ban carries China risk
Sri Lanka barred imports made with forced labour to secure a lower US tariff, a measure analysts read as targeting Xinjiang cotton and risking friction with Beijing.
Apparel exports exposed
Sri Lanka's $4.9 billion apparel sector sends about a quarter of its output to the United States, giving Washington leverage over the tariff decision.
Small-state squeeze
The episode showed how little room Colombo has to satisfy Washington without signalling alignment against Beijing.