Sri Lanka's garments sector is pinning its hopes on further discussions with the U.S. government after Donald Trump's administration's 30% tariff on the nation has placed it at a disadvantage to some of its biggest rivals.

Sri Lanka will continue talks with Washington for further reduction in tariffs, after US President Donald Trump imposed a lower-than-proposed 30% levy on the South Asian nation.

The impact is expected to be sharper for Sri Lanka, where 21 percent—or $618 million—of its $2.98 billion exports to the US in 2023 could now face Indian competition.