News
Govt. confirms commitment to GSP+ obligations
View(s):By Mimi Alphonsus
At the meeting with President Dissanayake, and the government shared their progress including on economic revival, anti-corruption, and reconciliation. They also elaborated on the government’s plans for repealing the Prevention of Terrorism Act (PTA) — one of the foremost concerns of the EU in the granting of GSP+.
Justice Minister Harshana Nanayakkara confirmed the government’s decision to repeal the PTA and introduce a new bill that will be in line with international commitments. “We hope to have a white paper within three to four months,” said Mr Nanayakkara who has appointed a committee headed by Rienzie Arsecularatne PC, to look into the PTA.
Mr Nanayakkara also said the government intends to do away with the criminalisation of same-sex relationships, another issue raised in previous GSP+ monitoring, but said he could not confirm a timeline as yet.
The EU delegation met with trade unions, civil society organisations, and several independent commissions during their visit, so far. The delegation shared with officials that a new GSP+ framework is being developed and Sri Lanka will have to reapply for GSP+ concessions, most likely in January 2028. It is not yet clear what updated requirements the new framework will include.
Until then, Sri Lanka does not face a big risk of losing GSP+, explained Asanka Wijesinghe, a researcher at the Institute for Policy Studies. Mr. Wijesinghe explained that GSP+ is very important for Sri Lankan industries as 30% of exports are sold to EU countries, and GSP+ status grants them a big competitive advantage. “When we lost GSP+ in 2010 our seafood sector all but collapsed,” said Mr. Wijesinghe. “It is the most vulnerable groups, like rural women workers, who will be most affected if we lose GSP+.”
Mr. Wijesinghe advises that until reapplication for GSP+, Sri Lanka attempt to use the concession more. Currently only 59% of eligible Sri Lankan exports to the EU are actually exported under GSP+. This is the second lowest “utilisation rate” of all GSP+ countries.
The low usage is because the apparel sector imports many materials from East Asia before manufacturing and exporting to the EU. As per GSP+ “Rules of Origin” requirements, only materials brought in from the region (India, Pakistan, Bangladesh, Maldives, Nepal, and Bhutan) or from Europe can then be further developed and exported to the EU under GSP+. Sri Lanka can make requests for other countries to be included as it successfully did last year, receiving approval to import certain textiles from Indonesia and still qualify apparel using those textiles for GSP+.
Officials at the Department of Commerce said that at the moment there is no plan to appeal for similar approval for materials imported from any
other country.
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