SJB MP Dr. Harsha de Silva yesterday warned that Sri Lanka’s annual trade concession worth over $500 million to the European Union (EU) through the Generalized System of Preferences Plus (GSP+) would be in jeopardy due to human rights violations and the proposed Anti-Terrorism laws.
The former non-Cabinet Minister was speaking in Parliament.
Sri Lanka’s garment sector, one of the top forex earners for the country, relies heavily on the GSP Plus concession.
Under new regulations, the EU now requires six countries including Sri Lanka and Pakistan to submit applications for the renewal of the GSP+ facility. The EU will decide whether to grant the facility from 2024 to 2033 after evaluating compliance with various conventions related to human rights, labour rights, good governance, environmental protection, and democratic rights. However, Sri Lanka’s proposed Anti-Terrorism Bill has raised concerns that it violates fundamental rights guaranteed by the country’s Constitution, potentially jeopardizing its chance of regaining the GSP+.
Losing this trade concession would have far-reaching economic consequences for Sri Lanka, particularly in the already-struggling garment sector. As the debate unfolds, the outcome will significantly impact Sri Lanka’s future trade relations with the EU. The country must address these human rights and democratic governance issues to retain its economic lifeline and build a sustainable future.
