Sri Lanka has intensified its diplomatic efforts to secure the continuation of the European Union’s GSP+ trade concession, with Deputy Minister of Foreign Affairs and Foreign Employment Arun Hemachandra meeting EU officials in Brussels this week.
The talks, held with Bernd Lange Member of the European Parliament, Chair of the International Trade Committee (INTA), and EU GSP+ Rapporteur focused on strengthening bilateral trade cooperation and safeguarding Sri Lanka’s access to one of its most valuable export privileges.
According to an official statement, the meeting centred on the future of the GSP+ scheme, which offers Sri Lankan exporters preferential access to the EU market by reducing or eliminating duties on over 6,000 product categories.
Hemachandra outlined the country’s ongoing economic stabilisation drive, including steady progress under the IMF programme, improved sovereign credit ratings, and renewed investor confidence.
He also emphasised the Government’s commitment to transparency, accountability, and inclusive governance key conditions tied to GSP+ eligibility.
The discussion further highlighted the arrival of a Fairtrade business delegation in Sri Lanka this week. The delegation’s visit is expected to create new opportunities for organic and Fairtrade-certified producers, enabling them to build long-term relationships with leading European retailers and distributors.
Officials believe this could boost Sri Lanka’s value-added exports at a time when the country is seeking stronger and more sustainable foreign exchange inflows.
Beyond the diplomatic messaging, the push to retain GSP+ carries far-reaching economic implications. For Sri Lanka, the benefits are clear: the scheme enhances export competitiveness, especially for apparel, fisheries products, rubber-based goods, and emerging organic produce.
With nearly a third of Sri Lanka’s exports destined for the EU, the preferential tariff system has helped local industries maintain their foothold against global competitors.
However, the arrangement also comes with challenges. GSP+ is conditional upon the implementation of 27 international conventions on human rights, labour rights, environmental protection, and good governance.
While successive governments have pledged compliance, periodic EU reviews often highlight areas requiring further reform. Critics argue that the pressure to meet EU benchmarks can, at times, strain domestic political consensus especially on sensitive governance and legal reforms.
At the same time, overreliance on GSP+ raises concerns about long-term export resilience. Economists caution that Sri Lanka must diversify its markets and upgrade its industrial capabilities rather than depend exclusively on tariff concessions that may not be permanent.
A potential loss of GSP+ would significantly impact export earnings and employment, particularly in the apparel sector, which employs hundreds of thousands of workers primarily rural women.
Reaffirming Sri Lanka’s position, Hemachandra told EU officials that the Government remains fully committed to meeting international standards in labour, environmental and ethical manufacturing practices. Strengthening cooperation with the EU, he said, will support the country’s industries, workers, and broader national development goals.
As Sri Lanka navigates its economic recovery, securing the continuation of the GSP+ facility remains a strategic priority. The Brussels meeting marks another step in the country’s efforts to safeguard crucial export access while working toward deeper trade and development cooperation with the European Union.
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