COLOMBO: The government of Sri Lanka says it expect to receive the European Union’s says Generalized Scheme of Preferences Plus or GSP+ trade concession by the 15th of Next Month as exporters eagerly await to benefit from the removal of the tariff imposed on goods to the 28-member European market. Speaking at a media briefing at the Ministry of Foreign Affairs this morning Deputy Minister of Foreign Affairs Dr. Harsha De Silva, who returned to the island Friday after observing the vote on GSP+ at the European Parliament yesterday in Brussels, said Sri Lanka will regain the GSP+ by the 15th May. “We expect the tide to turn around. This will be a significant turning point, in the falling GDP,” the Minister said. He said currently Sri Lanka’s exports are very limited including mostly apparel, rubber products and seafood. He pointed out that there is a “massive scope of diversification of our export basket,” as the GSP+ facility allows to export 6,600 items tax free to the vast European market. Meanwhile, business analysts say Sri Lanka will get many short and medium term benefits by regaining GSP+ and Sri Lanka must be keen on reaping those benefits before the Brexit scheduled to be taken place within the next two years. Europe is the largest trading partner of Sri Lanka with 30 percent of Sri Lanka’s exports going to the European market. Apparel products dominate the exports for the last 25 years with 45 percent of total products exported. Nathan Sivagananathan, the chief growth office of MAS Holdings, a leading apparel exporter, speaking to Rupavahini said the GSP+ will be very good for Sri Lanka. “It’ll help in driving entrepreneurship in the country. It is important to have many markets for us to be able to export to and be competitive in these markets. It is a great opportunity for the whole country,” he said.
Sri Lanka Apparel Institute Chairman Prof. Lakdas Fernando said the GSP+ is an immense benefit to Sri Lankan exporters but they must know how to develop very quickly since the Britain has two years to break away from the EU. He pointed out that Europe is a huge market, Apart from Britain, France, Germany and Italy are huge markets which Sri Lanka has not exploited yet. “Marketing to those countries need to be strengthened and also our factories must be encouraged to produce to get into the new technologies that are required so that you can meet the competitors that are already exporting to these countries,” he said. Deputy Minister de Silva said the regaining GSP+ must be made a foundational step for Sri Lanka to establish a Free Trade Agreement with the European Union. “GSP+ is a good opportunity for the country in order to sign a Free Trade Agreement with the EU. Despite obtaining GSP+ we must make haste to open discussions with the European Union to establish trade agreements, then the country will be able to continuously enjoy the benefits of GSP+,” he said.
