The National Chamber of Exporters of Sri Lanka (NCE), the institution driving export growth of Sri Lanka notes that Sri Lanka has undertaken many positive initiatives need to be eligible to enjoy the GSP Plus trade concessions to the European Union.
The 21st Amendment introduced in 2022 to strengthen democratic institutions, positive steps in the Justice Sector Reform Program and greater engagement between the government and civil society are some of the areas in which Sri Lanka has made progress, the chamber notes.
The Chamber is in consultation with all its members and stakeholders to seek their views and support the continuity of the GSP Plus scheme which is crucial for the export sector and the economy considering the quantum of jobs it supports.
However, it notes that the ongoing use of the Prevention of Terrorism Act (PTA) despite reform pledges, human rights issues, including treatment of minorities and civil society actors and the proposed Online Safety Bill, which may limit freedom of expression are some of the concerns that need to be addressed if Sri Lanka is to continue benefiting from the trade concessions.
Although Sri Lanka has ratified all 27 Conventions, the EU emphasises actual implementation and tangible progress. Continued compliance and improvement are essential to preserve this trade advantage.
Secretary General / Chief Executive Officer, NCE, M. Shiham Marikar said, “The GSP+ scheme provides exporters with duty-free access to over two-thirds of tariff lines in the EU market. This preferential access plays a vital role in supporting key export sectors — particularly apparel, which stands to lose significantly if the benefits are withdrawn.”
Sri Lanka regained GSP+ in 2017, but ongoing compliance with the 27 required international conventions — covering human rights, labor rights, environmental protection, and good governance — is essential to maintain this status.
A monitoring mission from the EU is currently visiting Sri Lanka (April 2025) to assess the country’s performance from 2022–2024. This assessment is crucial in determining our continued eligibility for GSP+, Marikar said.
A study by the Institute of Policy Studies titled ‘Who Stands to Lose? The Effects of GSP+ Withdrawal on Sri Lanka’s Exports and Labour Force’ , highlights several other economic and labour market consequences for Sri Lanka if its preferential trade access to the EU is revoked.
“The GSP+ preference erosion in the EU-28 market is worrying, as it will dwindle Sri Lanka’s export value while impeding the diversification of its export product basket towards products with high technology content,” the report, authored by IPS Researchers Dr. Asanka Wijesinghe, Chaya Dissanayake and Rashmi Anupama stated.
The GSP+ program is the largest trade concession program the apparel sector enjoys. Granted in 2017 the program offers the industry the ability to compete on even terms with our major competitors for the supply of apparel to the EU. Accounting for about 30% of our exports, the EU is our second-largest export market. We export annually to the EU around $1.5bn of apparel.
Of this volume, roughly 50% of the garments qualify for duty-free status in the EU. For the balance, unfortunately, the rules of origin of the scheme disqualify these garments as they are made from “non-originating” fabric.
