ECONOMYNEXT – Sri Lanka’s President Media Division (PMD) said top European Union official who met President Anura Kumara Dissanayake as part of a lucrative trade concession review meeting has stated that the EU has a favorable perspective on the current trade concession review process.
Charles Whiteley, the Head of South Asia Division, European External Action Service of the European Union met President Dissanayake on Wednesday (30) to discuss over annually $500 million worth trade concession Generalised Scheme of Preferences Plus (GSP+) which has helped the island nation’s top export garments.
He (Whiteley) affirmed the EU’s willingness to continue supporting Sri Lanka in achieving further commercial progress,” the PMD said in a statement.
“He stated that the GSP+ concessions from the European Union are anticipated to encourage Sri Lanka to provide products that meet standardized quality requirements.”
“He further said that the continuation of GSP+ trade concession is assessed on alignment with the current government’s policy commitments and progress.”
The meeting assessed Sri Lanka’s advancements in executing 27 international conventions related to the European Union’s GSP+ tax concession.
The PMD said President Dissanayake expressed his gratitude for the EU’s assistance during Sri Lanka’s economic crisis.
“He acknowledged that the GSP+ facility has played an important role in supporting the country’s export sector and economic recovery.”
“The President further noted that the collapse of Sri Lanka’s economy was the result of a deeply flawed political system, marked by corruption and mismanagement. The President stated that the current administration is working to rebuild the country through stable and transparent governance, though this transformation will require time.”
EU officials were not immediately verify PMD’s comments.
Sri Lanka faces a risk of losing the GSP+ trade concession due to concerns over its human rights record, weak rule of law, and failure to fully implement key international conventions.
The GSP+ provides preferential access to EU markets, especially for Sri Lanka’s apparel industry, which is a major source of export earnings and employment.
The potential withdrawal of this concession would severely impact Sri Lankan exports, reduce foreign exchange inflows, and hurt thousands of jobs, particularly among women in rural areas.
Losing GSP+ would also signal diminishing international confidence in Sri Lanka’s governance and could further isolate the country at a time when it is struggling to recover from an economic crisis, analysts say. (Colombo/April 30/2025)
Continue Reading
