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US tariff pause helps Sri Lanka's stock market surge, but economic recovery remains fragile.
Sri Lanka faces economic challenges due to 44% tariffs imposed by the US, impacting its exports and foreign currency earnings.
The country's debt crisis is exacerbated as it struggles to recover from a severe economic downturn.
The US has paused the tariff increase for 90 days, leading to a surge in Sri Lanka's stock market.
However, the Asian Development Bank warns that Sri Lanka's economic recovery remains fragile and requires continued fiscal discipline to manage future debt repayments.
The government is actively engaging in dialogue with the US to negotiate better terms and is exploring alternative trade strategies to mitigate the impact.
La pausa arancelaria de los Estados Unidos ayuda al aumento del mercado de valores de Sri Lanka, pero la recuperación económica sigue siendo frágil.