Sri Lanka is weighing the option of importing oil from the United States as part of efforts to reduce its trade surplus with the U.S. and possibly secure lower tariffs on its exports.

According to Dr. Anil Jayantha Fernando, the Minister of Labour and Deputy Minister of Economic Development, the government is open to purchasing American crude oil — provided it’s cost-effective. With monthly fuel imports costing between $300 million and $400 million, officials believe U.S. oil could help balance trade relations and support ongoing negotiations to lower the 30% tariffs currently placed on Sri Lankan exports to the U.S.

However, there’s a hurdle: unlike other countries, the U.S. doesn’t sell fuel through government channels, which means Sri Lanka can’t strike a government-to-government oil deal. “The U.S. market is run by private companies, so we’d need to go through a tender process,” the minister explained.

As of now, Sri Lanka does not buy oil from the U.S., but that could change. The Ceylon Petroleum Corporation (CPC) has already requested a sample of WTI crude oil—commonly used in the U.S.—to test whether it meets local standards. If it does, U.S. oil firms may soon enter Sri Lanka’s fuel tender process.

Last year, Sri Lanka exported $3 billion worth of goods to the U.S. — mostly garments — but only imported $368.2 million in return. This left a trade surplus of $2.6 billion in Sri Lanka’s favor. With talks ongoing and a negotiation deadline of August 1, importing U.S. oil is being considered as a step toward improving economic ties.

“If the cost of U.S. oil aligns with what we currently pay and logistics work out, we’re definitely open to the option,” Fernando added.

In a tight global fuel market and under pressure to unlock better trade deals, Sri Lanka’s shift toward American oil may serve both economic and diplomatic goals.