EU pressures Sri Lanka on GSP+ commitments as Colombo signals its intention to reapply for the next cycle of trade concessions. The bloc has emphasized time-bound reforms, particularly on human rights and counter-terror legislation, to ensure continued preferential access.
EU urges Sri Lanka GSP+ reforms to secure future trade benefits
EU pressures Sri Lanka on GSP+ commitments have intensified following high-level discussions in Colombo, with the European Union underscoring the need for measurable progress on reform obligations tied to the trade concession. A joint statement issued by Sri Lanka’s Foreign Ministry and the EU reaffirmed that compliance with 27 core international conventions remains central to the continuation of the Generalized Scheme of Preferences Plus arrangement.
For Sri Lanka’s export-oriented economy, the GSP+ framework has long functioned as both an economic cushion and a conditional mechanism. Duty-free access to the European market significantly benefits sectors such as apparel, fisheries, and manufacturing. However, that access is contingent upon sustained implementation of international conventions covering human rights, labor standards, environmental protection, and good governance.
The EU stressed the importance of time-bound delivery on commitments under the current GSP+ cycle, particularly progress in reforming counter-terrorism legislation. Brussels encouraged Sri Lanka to align its anti-terror legal framework with international standards and engage with competent United Nations bodies on related matters. Colombo, in turn, reaffirmed its commitment to implementing all 27 conventions under the existing scheme and pledged to provide regular updates on progress.
Sri Lanka’s decision to reapply for the scheme once the current cycle ends revives memories of the 2010 suspension. That year, the European Union withdrew GSP+ benefits citing serious human rights concerns following the conclusion of the civil conflict. The decision sent shockwaves through the country’s export industries, particularly apparel, resulting in factory closures and widespread job losses.
The trade concession was restored in 2017 after policy adjustments and renewed commitments from Colombo. Yet the latest dialogue demonstrates that compliance remains under continuous review. The EU’s position reflects its broader policy that preferential trade access is conditional upon demonstrable adherence to international norms rather than a permanent entitlement.
Central to the current debate is Sri Lanka’s Prevention of Terrorism Act. The EU has consistently called for its repeal or substantial amendment to bring it in line with global conventions. The Prevention of Terrorism Act has faced criticism from rights advocates who argue that certain provisions are inconsistent with international standards. Additionally, the EU has signaled concern over the Online Safety Act, urging amendments that ensure compliance with freedom of expression obligations.
For the administration led by President Anura Kumara Dissanayake, the challenge is multifaceted. Domestically, reforms to national security laws can generate political sensitivity, particularly in a post-conflict society. Internationally, failure to advance reforms risks jeopardizing preferential market access at a time when economic recovery remains fragile.
The economic stakes are considerable. The EU is one of Sri Lanka’s largest export destinations, and GSP+ provides tariff advantages that enhance competitiveness against regional peers. Loss of the concession would increase duties on key exports, potentially affecting investor confidence and employment levels in export-driven industries.
Analysts note that the EU’s insistence on regular progress reports underscores a shift toward more rigorous monitoring. The emphasis on engagement with UN mechanisms and transparent legislative timelines suggests that incremental or symbolic reforms may not suffice. Instead, tangible changes aligned with international benchmarks will likely determine the outcome of Sri Lanka’s reapplication.
EU pressures Sri Lanka on GSP+ commitments therefore represent more than routine diplomatic dialogue. They signal a structured evaluation process in which economic incentives are directly linked to governance standards. For Colombo, the path forward involves demonstrating consistent, verifiable compliance while balancing domestic political considerations.
As Sri Lanka prepares for the next GSP+ cycle, the interplay between trade policy and human rights reform will remain central. The outcome will not only influence export competitiveness but also shape perceptions of the country’s commitment to international norms. In this context, delivery on obligations is likely to prove decisive in securing continued access to one of the world’s largest consumer markets.