GSP Archives

June 6, 2023

With the current GSP+ regulation set to expire by the end 2023, it is imperative that Sri Lanka takes measures to secure concessionary access to the European market. Securing GSP+ depends on Sri Lanka upholding the already ratified conventions spanning human rights, labour, environment and governance. If Sri Lanka is to lose GSP+, the combined loss for the apparel sector is estimated at USD 494 million, which is 79% of the estimated trade loss.

Secretary General of the Joint Apparel Association Forum Sri Lanka, Yohan Lawrence spoke on the critical need to retain GSP+ post-December 2023. In this interview, Lawrence shares his perspectives on the importance of trade concessions for Sri Lanka’s apparel sector and the economy, the potential consequences if revoked, and the apparel sector at present.

What is the current state of Sri Lanka’s economy, and how does it impact the apparel sector?

Sri Lanka’s overall economic outlook shows slow but steady signs of recovery, especially after the Sri Lankan Government reached a staff-level agreement with the IMF for a 4-year Extended-Fund Facility programme (EFF) earlier this year. This is critical to inspire investor confidence and attract much-needed foreign direct investment (FDI) to the country.

With that being said, the country was able to achieve over USD 1 billion[1] in March in exports for the first time in 2023; however, in apparel exports specifically, there has been a 15-25% drop in orders as a result of the global economic slowdown caused by the increase in interest rates to combat high inflation in the West specifically in major exporting countries including the US, UK and Europe.

Recent data shows apparel exports declining by 14.95 per cent Year-on-Year (YoY) to USD 1.18 billion in the first quarter of this year compared to the same period last year, which is the lowest since the first quarter of 2013. The industry projects it could be five to six more months before it sees a recovery in global demand.

Can you explain the Generalised Scheme of Preferences (GSP+) and why securing it is essential for Sri Lanka’s apparel sector?

GSP+ is a trade incentive granted by the European Union (EU) to developing countries, eligible to import items to the EU market, guaranteeing increased trade with the EU. It has also been observed that the EU’s GSP+ helps developing countries alleviate poverty by generating employment across vulnerable communities specifically, adding skill, knowledge and technological know-how to a pool of resources and creating jobs based on international values and principles.

Latest data shows that EU imports from Sri Lanka amounted to about €2.55 billion in 2021, of which approximately 54% benefitted from reduced tariffs under the GSP+ arrangement[2]. Moreover, 85% of Sri Lanka’s current exports are eligible for tariff reductions under the GSP+ scheme[3]. Such preferential access granted through GSP+ provides Sri Lankan apparel exporters with an advantage of diversification and exploring new export opportunities.

It is important to note that the apparel industry has experienced a rapid decline in demand (15%-25%) amidst an ongoing dip in apparel exports in the first quarter of this year. Securing GSP+ within the two-year period post-December 2023 becomes critical in this context, as the apparel industry cannot absorb a further reduction in orders with the loss of the concessionary scheme nor the Sri Lankan economy bear the loss of essential foreign exchange inflows and investment incentives the GSP+ scheme underwrites.

What can the global apparel industry do to help Sri Lanka secure GSP+?

GSP+ concessions are conditional on qualifying countries ratifying and effectively implementing[4] 27 international conventions spanning human rights, labour rights, the environment, and good governance[5]. Therefore, at this point, the onus is on Sri Lanka to ensure that the required criteria are met.

We must understand that over 30% of Sri Lanka’s apparel exports are to the EU and having GSP+ in this current economic environment is critical. Apparel factories in the north and east regions, for example, export at least over 80% of their products under this scheme. Sri Lankan apparel was the very first large-scale manufacturing sectors to enter the region and remains the single largest sector in those areas today. This has infused much-needed investment into the community and providing employment opportunities, especially for women in the North and the East (the majority of whom are breadwinners), following the end of the civil war.

Therefore, concessionary schemes like this help Sri Lanka to be price competitive within the EU market.

Is JAAF in talks with the European Commission at the moment? If so, how is that going?

As an industry body, we do not engage directly with the EU Commission regarding GSP+; as it is a matter dealt with from Government to Government. On the other hand, whenever a delegation visits our country, we make every effort to arrange a meeting with them in our capacity as the leading authority representing the apparel sector, as and when necessary.

However, we work closely with relevant Government authorities and the newly established International Trade Office to ensure the importance of GSP+ is recognised and that Sri Lanka makes its application within the required timeline, abiding by protocol.

When can we expect to receive the report by the European Commission that was due to be released in early 2023?

While we do not know the details, our understanding is that this is imminent, and we are confident that the Government is fully aware of the importance of the continuity of GSP+. A cabinet paper was recently submitted highlighting the importance of securing the trade scheme.

Earlier this month, talks were held between the Ministry of Foreign Affairs and the EU Joint Commission[6], with the visiting delegation providing a brief on the new cycle of the EU GSP+ Regulations to be adopted for 2024 – 2033.

Will this make it challenging to secure GSP+?

We do not see it that way because, as stated earlier, the onus is on Sri Lanka to ensure the required criteria are met. But availing of GSP+ will positively impact worker earnings, which is why it becomes critical to ensure that we obtain this benefit to safeguard workers’ livelihoods.

Throughout Sri Lanka’s economic crisis, many global brands showed their support for Sri Lanka’s apparel sector – is this continuing, and is there any concern over the potential loss of GSP+ at the moment?

It is heartening to know the support we continued to receive from major brands throughout the economic crisis and the trust placed in Sri Lanka’s ability to deliver. This continues to this day. These brands have acknowledged that the talent and skills of our employees have played a significant role in displaying the country’s resiliency.

This was only possible with the Government’s support and other entities including the Export Development Board to ensure our plants could operate unhindered during the fuel and energy crisis.

More than concerns about GSP+, global brands and local manufacturers are working together to power through the global economic slowdown and cushion the impact of the global economic downturn on the sector. We hope to see a turning point at the end of the year.

What could happen to Sri Lanka’s apparel sector after 2023 if GSP+ is not secured?

If GSP+ concessions are withdrawn, Sri Lanka will not only severely lose its competitive edge, risking the sustenance of the apparel industry but will also lose USD 494 million worth of exports, at a time when the country’s priority should be in reaching as many diverse markets as possible. The Institute of Policy Studies also indicated that the apparel industry would be among the worst-hit sectors if Sri Lanka is to be withdrawn from the GSP+.

Other sectors that would be affected include tobacco, seafood, and rubber. With Sri Lanka being identified as a country with the least use of its preferential market access among all GSP+ countries, the loss of preferential access will halt the industry’s drive to increase the current utilization rate (63%) and efforts to expand Sri Lanka apparel’s market share in the EU.

What is JAAF’s plan for Sri Lanka’s apparel sector if GSP+ is not an option? Will you be looking to grow the country’s market share outside Europe?

The EU market is integral to Sri Lanka Apparel. We have a number of European investments in the sector, some going back 40 years and protecting this market is one of our key objectives. That said, we acknowledge the need to have a wider base of exports and have been actively engaging with top Government and Foreign Ministry officials for some time now, to expedite negotiations on Free Trade Agreements (FTAs) outside the EU and the UK.

At a time when the country’s economy is in a critical state, securing new FTAs can help export diversification and reduce barriers for Sri Lankan apparel exporters. Furthermore, it will generate much-needed foreign exchange for the country. Therefore, securing an FTA with China is one of our key priorities.

There is also great potential within the Indian market with the Indo-Sri Lanka FTA. Under the current arrangement, the country can only export 8 million ready-made pieces annually, but Sri Lanka has the potential to export much more. Beyond this, we also see potential in countries like Canada, Japan, South Korea and Australia and continue to push for better market access to these countries.

If the apparel sector is to successfully diversify its markets and, in the process, increase its resilience and secure the jobs of the untold hundreds of thousands, earning a living through this sector. The strategic vision of the Sri Lankan Government and the coordinated actions of its diplomatic missions will be most important.

[1] https://www.dailymirror.lk/print/business/Imports-show-recovery-on-the-back-of-seasonal-demand-in-March/215-258488

[2] https://gsphub.eu/country-info/Sri%20Lanka

[3] https://gsphub.eu/country-info/Sri%20Lanka#:~:text=Usage%20of%20GSP%2B%20Preferences&text=The%20preference%20utilisation%20rate%2C%20which,%2C%20currently%20stands%20at%2063%25.

[4] https://gsphub.eu/news/gsp-proposal

[5] https://trade.ec.europa.eu/access-to-markets/en/content/generalised-scheme-preferences-plus-gsp#:~:text=The%20EU’s%20Generalised%20Scheme%20of,labour%20rights

[6] https://mfa.gov.lk/25th-session-of-the-eu-sri-lanka-joint-commission/

February 11, 2022

By Felix Fernando

Much has been said of the potential economic costs to Sri Lanka, of losing the Generalised Scheme of Preferences (GSP) Plus trade concessions to the European Union (EU). While these costs will be high, the social and human costs are likely to be even greater.

Considering official statistics for 2021, available up to end November, the EU was Sri Lanka’s single largest export market for 2021, accounting for nearly a quarter (24.1%) of our total merchandise exports of US$ 11.1 billion.

Given the EU’s importance to Sri Lanka, the loss of preferential tariffs for Sri Lanka’s exports to the EU through GSP+ previously, in 2010, had a substantial adverse impact on our economy. This likely led to an increase in poverty and income inequality as per academic studies (for example, Bandara and Naranpanawa, 2014). At present, given the ramifications of the pandemic, the consequences of the loss of GSP+ could be far more dire, leading to increase in unemployment, poverty, vulnerability and inequality, as well as loss of improvements achieved in female empowerment.

According to the World Bank’s estimates, Sri Lanka’s poverty rate rose from 9.2% in 2019 to 11.7% in 2020, putting more than 500,000 additional people in poverty. The country’s poorest were disproportionately negatively affected. Adding to the woes stemming from the loss of income and livelihoods – especially by informal workers who account for around 70% of Sri Lanka’s labour force – the cost of living has soared in recent times. Inflation was at a 12-year high in December 2021, with food prices surging to levels that have led to fears regarding increase in malnutrition and hunger.

In such a scenario, the loss of GSP+ would be highly damaging. EU is a key market for some of Sri Lanka’s largest export industries including apparel, food exports and plastic and rubber exports. These sectors employ a substantial portion of our workforce and are also characterised by the heavy presence of small and medium enterprises (SMEs). In addition, the EU has been a significant contributor to the growth of some of these exports industries – for instance rubber-based exports and seafood.

For Sri Lanka’s biggest export industry, apparel, the EU is particularly critical, being the single largest market. The EU accounted for $2.2 billion or nearly half (43.6%) of the sector’s total export earnings for 2021. The apparel industry employs 350,000 workers in the country, of which nearly 80% are rural women. Female representation in the industry is more than double the national average, considering the share of women in Sri Lanka’s labour force. Therefore, if GSP+ is lost, vast improvements made in female economic empowerment and overall human capital could also be in jeopardy.

SMEs and family-owned businesses are also likely to be more severely affected if GSP+ is unavailable. Many apparel SMEs tend to depend on subcontracts from larger players, which will dry up if excess orders are not available due to loss of preferential access to key export markets. Earlier, when GSP+ concessions were removed in 2010, there were reports of several SME apparel factories being closed down, which also led to unemployment. Currently, SMEs account for approximately 45% or nearly half of Sri Lanka apparel manufacturing facilities and provide employment to around 50,000 employees.

Many apparel manufacturing facilities in the country are located outside urban areas and industrial zones and are crucial in generating rural employment. SMEs are particularly vital in this regard since due to their relatively smaller scale, which requires less workers, a high percentage of these factories are located in less-populated and lagging regions.

Many other sectors in the country rely on the apparel industry, given its heavy presence across the island. These include logistics and transport providers, raw material suppliers as well as small-scale businesses providing food and refreshments. In addition, several cottage industries, such as producers of carpets and pillow covers, depend on apparel factories in their neighbourhoods for raw material (in the form of waste fabric). If the industry is to suffer a downturn due to loss of GSP+, this entire economic ecosystem too will suffer adverse trickle-down effects.

In addition, the pandemic has led to global re-orientation of supply chains which Sri Lanka’s apparel sector is well-positioned to capitalise on. However, this requires easy access to exports markets, through trade arrangements such as GSP+. Export earnings, which generate foreign exchange, are also vital for Sri Lanka’s economic stability, as well as to meet our foreign debt obligations.

Hence, given these challenges and opportunity costs, Sri Lanka needs GSP+ now, perhaps more than ever before.

In discussions with the Government, the apparel industry and other export sectors have impressed upon the authorities the importance of retaining GSP+. These concerns have been met favourably by the authorities and the industry is hopeful of a positive outcome.

In addition to retaining GSP+ in the immediate future, it is important that Sri Lanka engages with the EU to enjoy the benefits of the new GSP+ facility, which will commence in 2024, replacing the existing scheme. Sri Lanka needs to be prepared to align itself with the 33 conventions of the new scheme, compared with the 26 conventions of the current GSP+ regime. It is critical that the policymakers and the authorities commence these preparations now.

In addition to GSP+, the apparel sector has also emphasised on the authorities the importance of low-tariff or tariff-free access to other key export destinations – such as USA, China, India (to which a quota applies for apparel exports from Sri Lanka), Japan and South Korea. The Government has responded favourably to these concerns and the industry is hopeful of a positive outcome. New Free Trade Agreements (FTAs) can provide a significant boost to expanding and diversifying Sri Lanka’s and the apparel industry’s export markets.

While these are critical at present, it is important to recognise that the apparel industry does not expect GSP+ concessions to remain indefinitely. We are mindful of the fact that the country will lose its trade concessions in the future, as we gradually transition to an upper middle-income nation.

With the assistance of other stakeholders, including the Sri Lankan Government, the apparel sector has commenced a series of concerted initiatives to prepare the industry for the potential loss of trade concessions in the future. These efforts are also aimed at transforming Sri Lanka into a global apparel hub, increase the sector’s competitiveness and diversify its export markets.

The foundation has already been laid in this regard. For instance, Sri Lanka has positioned itself as a leader in sustainable apparel manufacturing. Sri Lankan apparel producers have invested significantly in manufacturing facilities that incorporate the latest environmentally-friendly features – minimising wastage, energy, and emissions.

The apparel sector has also made progress in further strengthening human resource practices. Through the ‘Garments without Guilt’ initiative, many Sri Lankan factories voluntarily submitted themselves to independent audits of working conditions. In December 2021, the apparel industry also signed a historic agreement with trade unions, paving the way for greater transparency in employee control over dispute resolution and grievance handling.

In the long run, these initiatives can strengthen Sri Lanka’s apparel industry significantly and, by extension, the country’s export sector, reducing the need for trade concessions. However, if these concessions are removed now, the social and human costs are likely to be dire. Given the pandemic’s unprecedented impact, GSP+ to the EU is critical for Sri Lanka and its export sectors at present.

(Felix A. Fernando is the CEO of Alpha Apparels Ltd. and Sirio Ltd., and a Group Director of Omega Line, which ranks among Sri Lanka’s five largest apparel exporters. He holds a MBA from the Post Graduate Institute of Management (USJ), in addition to being a Fellow member of the Chartered Institute of Management Accountants, U.K. He has received extensive Executive Education at Harvard, The Wharton School, National University of Singapore and AOTS, Japan. Fernando is also the Deputy Chairman of the Joint Apparel Association Forum Sri Lanka and a Past Chairman of the Sri Lanka Apparel Exporters’ Association.)

October 26, 2021

By A. Sukumaran – Chairman, Joint Apparel Association Forum (JAAF)

The recent European Union (EU) monitoring mission visit to Sri Lanka on the Generalised Scheme of Preferences (GSP) Plus trade concessions scheme, has ignited much speculation locally, on the potential costs of losing GSP+ to the EU.

However, many such analyses have significantly under-estimated the potential losses, often failing to account for vital factors. Hence, in this article, the Joint Apparel Association Forum (JAAF) – the apex body representing Sri Lanka’s apparel sector – seeks to provide stakeholders a comprehensive understanding of the potential costs associated with losing GSP+ to the EU.

Based on available evidence, it is highly probable that this carries heavy economic as well as ‘social and human costs’ – the latter particularly from a poverty and vulnerability perspective.

EU: A vital trade partner

First, placing the vital importance of EU’s GSP+ in context, exports to the EU – Sri Lanka’s second largest destination for exports – accounted for nearly a quarter (23%) of Sri Lanka’s total export earnings in 2020. This is equivalent to roughly 3.2% of Sri Lanka’s entire Gross Domestic Product (GDP) for 2020.

The EU accounts for a large component of the total exports of many of Sri Lanka’s biggest export industries. Approximately two thirds (61%) of the country’s exports to the EU benefit from GSP+ concessions. While slightly more than half of these are apparel – which accounted for 43% of the sector’s earnings in 2020 – EU is also a key market for Sri Lanka’s plastics and rubber product exports, vegetable products, machinery and appliances, food, beverages and tobacco.

In fact, industries such as seafood, rubber products, and footwear make even greater utilization of GSP+ than apparel does (more than 90%, compared with less than 50% for apparel) and hence, as per a local think-tank, would also be highly vulnerable if GSP+ is lost.

Opportunity costs are another consideration. Available data overwhelmingly indicates that the GSP+ scheme is beneficial to countries which are eligible for these concessions. From 2011 to 2017, exports to the EU by GSP+ beneficiaries had increased by 82%. In Sri Lanka’s case in specific, much of the growth that enabled Sri Lanka’s apparel industry to achieve export earnings of more $5.3 billion prior to the pandemic in 2019 is attributed to the EU. It’s also important to note that that Sri Lanka’s competitors, such as Bangladesh for instance, will continue to enjoy these privileges.

Far-reaching employment impact

The implications of a GSP+ loss on local employment are significant even if one were to consider only apparel and food product exports – both of which benefit from the EU GSP+ scheme. The industry has provided steady and uninterrupted employment to around 350,000 apparel workers, while indirectly creating livelihood for an additional 700,000 within the country. According to the 2019 edition of the Annual Survey of Industries, more than 360,000 people are employed in the food products sector. Even after removing employees of non-export businesses in the food products sector, this would imply that export industries which are significant beneficiaries of EU’s GSP+ are also some of the country’s biggest employers.

Furthermore, in the case of apparel, nearly 80% of the employees/associates are predominantly rural women, implying that vulnerable rural groups stand to be disproportionately impacted if GSP+ is lost. This would further exacerbate already high levels of income inequality in the country. SMEs in the apparel sector could also be affected to a greater extent, which too could contribute to inequality.

Academic studies done on loss of GSP+ by Sri Lanka in 2010 (for example, the study done by Bandara and Naranpanawa in 2014) have indicated that poverty and income inequality likely increased as a result at that time. A highly respected Sri Lankan trade expert also stated at a public forum few months ago that loss of GSP+ led to around a 1% loss of GDP for the country.

Trade shifts and beyond

Beyond the above context, it is also important to take into account the likely outcomes of the loss of GSP+ to the EU, to understand the full extent of the costs involved. There are two important factors that should be considered in this regard; likelihood of trade shifts and the potential for negative cascading effects such as the loss of Sri Lanka’s other trade concessions.

Apparel brands and buyers now strongly prefer end-to-end solutions providers. Hence, if Sri Lanka were to lose GSP+ to the EU – which would increase the cost of our apparel by 9.5% for buyers in the EU – the loss of market share will not be limited to products that receive GSP+ concessions. Buyers could shift en masse to Sri Lanka’s competitors, resulting in trade shifts which would be further detrimental to the interests of our country.

Furthermore, there are significant parallels between the conditions under which tariff concessions are provided to Sri Lanka via EU’s GSP+ and other similar schemes which Sri Lanka currently benefits from. Hence, if Sri Lanka were to lose GSP+ to the EU, there is high probability of trade concessions to the UK and even USA coming under review. These markets are also vital markets for Sri Lanka’s exports – with US and UK collectively accounting for more than one third (34%) of Sri Lanka’s national exports in 2020.

In addition, two other markets that the Sri Lankan apparel industry hopes to enter – Japan and Australia – also have GSP schemes, modelled on the EU. Hence, the European Commission’s actions could potentially affect those plans.

Potential loss of FDI

Foreign Direct Investments (FDI) too would be negatively impacted, if GSP+ to the EU is lost.

Fabric processing, which would strengthen the apparel industry’s backward integration enabling greater utilization of trade concessions such as GSP+, is one of Sri Lanka’s key sectors newly designated for FDI. However, if the country is no longer eligible for trade concessions, questions would arise with regard to the sector’s viability. This would carry a significant opportunity cost for the country. Potentially, thousands of employment opportunities – both directly in fabric processing and in the apparel sector which would expand as a result – will be lost, together with millions of Dollars in much-needed FDI inflows.

Loss of foreign exchange earnings from exports, employment and FDI will have cascading impacts that would lead to other negative consequences. For instance, foreign exchange earned from apparel and other exports are essential for Sri Lanka’s critical imports – including food, medicine and fuel. Currency depreciation pressure etc. would also exacerbate.

GSP+ more important than ever

The above indicates that the potential loss of EU’s GSP+ would have far-reaching adverse impacts on many fronts that could trickle down to all sectors of the economy. Export industries and the country’s economy as a whole have taken a heavy blow from the pandemic. The apparel sector too was significantly impacted and is still grappling with many economic shocks. These include order cancellations and reductions, drop in margins, having to provide longer credit periods to buyers, supply chain disruptions and having to work with reduced staff, in adhering to safety protocols.

Given these challenges, the need for GSP+ is perhaps greater than ever. In this regard, we appreciate the government demonstrating its clear commitment to retaining it. We are optimistic and hopeful that any concerns can be ironed out through constructive engagement.

However, this should not be construed as an indication of the industry relying on GSP+ concessions indefinitely in the medium to long-term. We have put in place concerted initiatives to enhance the sector’s competitiveness. This includes developing strategic (as opposed to transactional) relationships with buyers, upgrading research and development capabilities and increasing innovation, developing branded products and efforts to diversify export markets. These are not mere claims by the sector and have been recognized by buyers and even in publications of the World Bank.

Retaining our existing preferential trade concessions together with the initiatives underway to enhance the industry’s competitiveness will enable Sri Lanka’s apparel industry to achieve its goal of becoming a $8 billion export earner by 2026. This will significantly increase our contribution to the domestic economy in terms of export earnings, employment, technology infusion and investment. The industry is fully-committed to this task but requires sufficient stability, especially protection from further economic shocks at present, to achieve this goal.

June 16, 2021

The Foreign Ministry regrets the adoption of a resolution on Sri Lanka in the European Parliament on 10 June 2021. The resolution entitled “The Situation in Sri Lanka, in particular the arrests under the Prevention of Terrorism Act”, contains factual inaccuracies, and does not take cognizance of the multifaceted progress made by Sri Lanka in reconciliation and development.

At the outset, the Ministry wishes to state that provisions of the Prevention of Terrorism Act have been invoked to address heinous acts of terrorism committed on its people. In this context. It is recalled that the Easter Sunday terrorist attacks of 2019 resulted in significant loss of life, including of several EU nationals.

It is important to underscore that the Government of Sri Lanka maintains a regular, vibrant and cordial dialogue with the European Union (EU), covering all aspects of bilateral relations. The engagement is sustained through the close and cordial dialogue maintained with the European Commission, the Council and the Parliament by the Sri Lanka Mission in Brussels; and with the EU delegation and EU Ambassadors in Colombo by senior interlocutors of Government.

As part of this process, Sri Lanka has constructive engagement with the European Commission on the review of its EU GSP + compliance with the 27 core International Conventions. Towards this end, the Third Cycle of Review of the EU GSP + Monitoring Process for 2020-2021 is ongoing.

Sri Lanka apprised the EU on progress with regard to its wide range of cooperation at the annual EU-Sri Lanka Joint Commission, the 23rd session of which was convened in January 2021. Further updates are provided through the relevant Working Groups and Committees functioning under the purview of the Joint Commission.

With regard to salient points referred to in the resolution, the Ministry wishes to submit the following observations with a view to correction.

The Government has, in accordance with its constitutional mandate and international obligations, taken steps to protect the rights of all its citizens. Specific provision in terms of Article 12 (1) of Sri Lanka’s Constitution ensures that all persons are equal before the law and are entitled to the equal protection of the law. Article 12 (2) of the Constitution prohibits discrimination based on race, religion, language, caste, sex, political opinion, place of birth or any such grounds.

The Government is in the process of revisiting provisions of the Prevention of Terrorism Act, in keeping with its commitments, as has been communicated to the EU. Towards this endeavour, the Government is studying existing legislation to propose necessary amendments, and will also draw on international best practices adopted by other jurisdictions. The Government rejects the claim that the PTA has been systematically used for arbitrary arrests and the detention of Muslim or other minority groups in Sri Lanka.

It is observed that the 20th Amendment was enacted in full compliance with the procedure set out in the Constitution with a two thirds majority of the Members of Parliament voting in its favour. With regard to such legislation, a number of in-built safeguards relating to transparency and judicial review aimed at preventing the passage of bills that are inconsistent with the Constitution, including its Fundamental Rights chapter, have been adhered to.

The Government has regularly updated the Human Rights Council as well as EU interlocutors on the measures undertaken to address issues of accountability, and to achieve continued progress in reconciliation. Mechanisms in place in this regard include the Presidential Commission of Inquiry headed by a Justice of the Supreme Court; the Office of Missing Persons; the Office of Reparations, the Office of National Unity and Reconciliation; the Human Rights Commission of Sri Lanka; and related institutional reforms aimed at non-recurrence and other confidence building measures. With regard to sustainable development, the Inter-Ministerial Committee headed by the Prime Minister to steer SDG implementation is of significance.

Sri Lanka’s labour rights, including health and safety conditions, are in compliance with ILO standards. Sri Lanka’s high labour standards maintained in production, have led to better quality products, and high value added exports, as reflected in the apparel sector. The higher demand for ‘ethical’ products from Sri Lanka has led to increased production, subsequent investment, and improvement of the human capital in Sri Lanka. The EU GSP + concessions have contributed significantly towards this process, thus benefiting the Sri Lankan economy, as well as the EU market. Similarly, the fishery sector is a notable growth sector which has benefited from EU GSP + concessions.

Sri Lanka, as one of the oldest parliamentary democracies in Asia, has a longstanding vibrant democracy. The country’s robust foreign policy is based on the principles of neutrality, non-alignment and friendship. The Government is committed to further strengthening its democratic institutions. As asserted by the Spokesperson of the 06th EU Election Observation Mission to Sri Lanka in November 2019, which comprised Members of the EU Parliament, the peaceful environment in which the election unfolded ‘confirms the stability of the [country’s] democratic institutions.’ These remarks remain valid.

The COVID-19 pandemic continues to have a devastating impact globally, placing drastic limitations upon the right to safety, health, economic security, and even the right to life of millions of people across the globe. Sri Lanka continues to face challenges in spite of consistent and concerted efforts by the Government to safeguard its entire population against the pandemic, and to provide equitable access to vaccines. In this backdrop, the Government appreciates the commitment of global multilateral institutions and UN agencies to uphold the economic, social and cultural rights of all peoples, which are intrinsically linked to civil and political rights. Sri Lanka’s commitment to upholding human rights continues in tandem with its current priorities of inoculating its targeted population, providing healthcare and economic revival.

In these critical times, Sri Lanka should be supported in safeguarding the rights of its people, while taking cognizance of demonstrated progress on the ground. The Government of Sri Lanka looks forward to continuing its partnership with the EU on a broad range of issues, and reassures the EU of its continued commitment to engage proactively and productively on areas of mutual interest.

Foreign Minister Dinesh Gunawardena briefed Chargé d’Affaires of the Delegation of the European Union in Colombo Thorsten Bargfrede, as well Colombo-based EU Ambassadors / Chargé d’Affaires from France, Italy, Romania, Germany and the Netherlands, on the Sri Lanka Government’s position as detailed above, at a meeting convened at the Foreign Ministry on Monday 14 June 2021. The Minister of Fisheries Douglas Devananda, State Minister for Regional Cooperation Tharaka Balasuriya, and Foreign Secretary Admiral Prof. Jayanath Colombage also participated in the meeting.

November 20, 2017

Premier apparel Ind. sourcing event Intex -3 opens in Colombo
‘Intex, the largest apparel sourcing event in the region’-PM Wickremesinghe
“Jan-Sept apparel exports surge, totalled closer to $ 4 Bn’-Rishad
Says GSP Plus boosted SL apparel exports to EU, $1.67 Bn so far
“SL missed many regional oportunities’-PM RW
“Apparel exports to EU rose only 2% in pre-GSP Plus, but 3% surge after GSP arrived”–Rishad says Govt’s improved int’l relations brought in EU GSP+

EU GSP Plus has delivered its most prominent success for Sri Lankan exports to-date since its announcement.

“As a result of Prime Minister Ranil Wickremesinghe’s efforts on GSP Plus, our apparel exports from January to September this year has increased by 11.3% to US $ 1.67 Billion” said the Minister of Industry and Commerce of Sri Lanka on 15 November in Colombo. Minister Bathiudeen was addressing the launch event of the third edition of Intex South Asia 2017 in Colombo on 15 November joined by Prime Minister Ranil Wicremesinghe, (HE) South African High Commissioner in Sri Lanka Ms R P Marks and (H.E) High Commissioner of India to Sri Lanka Shri Taranjit Singh Sandhu. Having completed two previous fairs in 2015 and 2016 in Colombo, Intex has now become the largest and sole international textile sourcing event in South Asia for yarns, apparel fabrics, and accessories. A strong presence of Chinese, Indian and Hong Kong participants is seen-along with leading multinationals such as Reliance Industries, Bombay Rayon Fashions Ltd., Mekotex, The Woolmark Company are showcasing their material at this event which concludes on Friday 17.

Prime Minister Ranil Wickremesinghe called for more events like Intex as a way for Sri Lanka’s integration with the region. “Intex is the largest textile sourcing exhibition in the region” said PM Wickremesinghe and added: “It is also an indication of how we are integrated to the global trading system. SL apparel industry is important for our economy and is important for integration of Sri Lanka with the global trading system and the rest of South Asia. But there is more to be done. There are many opportunities in the value chain in the region that we have not taken. This type of events will lead to closer integration with South Asian countries.”

Minister Bathiudeen stressed that the EU GSP Plus has delivered for Sri Lankan apparel exports.

“Our government’s special efforts to improve our international relations were successful and has resulted in Sri Lanka receiving EU GSP Plus which greatly strengthened our exports, specially apparel exports” said Minister Bathiudeen and added: “Our apparel exports to EU has increased by only 2% from January to September 2016 in comparison to the same period in 2015. As a result of Prime Minister Ranil Wickremesinghe’s efforts, after receiving EU GSP Plus, our apparel exports to EU from January to September this year compared the same period last year at US $ 1.5 billion, has increased by a huge 11.3% to US $ 1.67 Billion. Even though US market is not connected to EU GSP our apparel exports to US too has increased this year by 12% to $ 1.8 billion (in January to September). I am also pleased to say that our overall apparel exports to all countries this year January to September increased by 13.4% to US $ 3.97 billion in comparison to the same period last year at US $ 3.5 billion. We believe this growth trend would continue and therefore expect even better performance next year.”

In 2016, Sri Lanka’s apparel exports were at US $4.86 Bn, claiming 43% of total Sri Lankan exports basket of that year.

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