Sri Lanka intends to reapply for the European Union’s GSP+ trade concession by the end of 2028, Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath has said, setting a public timeline for re-entry under the bloc’s revised preferences framework.
“We hope to address all outstanding matters and be ready to reapply for GSP+ within the stipulated timeframe,” Herath said, in remarks reported by NewsFirst. “We also look forward to the support of our friends in the European Union in securing this important facility for Sri Lanka once again.”
GSP+ grants duty-free access to the EU market conditional on implementing 27 international conventions covering human rights, labour rights, good governance and environmental protection. Sri Lanka has held the concession since it was reinstated in 2017 and is the scheme’s third-largest beneficiary.
The reform gap
Herath said several legal reforms are in progress, including the repeal of the Prevention of Terrorism Act and its replacement with new counter-terrorism legislation, while amendments to the Online Safety Act are being finalised.
That tracks only partly with what Brussels has asked for. The EU’s recommendations, published earlier this month, pressed for the repeal of both statutes — the government is preparing to amend the Online Safety Act rather than repeal it. The Cabinet approved a bill to replace the PTA in August.
Brussels wants an application
The EU’s ambassador to Sri Lanka and the Maldives, Carmen Moreno, has separately urged Colombo to apply, telling the Sri Lankan-German Business Forum in Colombo that the country had not made full use of the concession over the past decade, Daily FT reported.
“GSP+ is an opportunity. Use it fully. Apply for it,” Moreno said. She noted manufacturing accounts for about 25% of Sri Lanka’s GDP, far below comparable Asian exporters, and said the country would face sharper competition as the EU concludes trade deals with Indonesia and negotiates with Thailand and Malaysia. “Market access is not a threat. It is a tremendous opportunity.”
The current EU GSP regulation, originally due to expire at the end of 2023, has been extended to 31 December 2027 pending the new framework. Neither source explained how that date relates to the end-2028 application timeline Herath cited.
Herath also said Sri Lanka expects to meet debt repayment obligations from 2028, that the IMF completed the fifth and sixth reviews of its Extended Fund Facility this year releasing US$695 million, with a seventh review due in October. He cited the US tariff on Sri Lankan exports falling to 10% from a proposed 44% and the World Bank’s restoration of upper-middle-income status as signs of returning confidence. Neither report stated where he was speaking.
