Government to reapply for GSP+ trade preferences under the EU's new ten-year framework

The Sri Lankan government will apply again to remain in the European Union's GSP+ trade preference scheme, Deputy Finance Minister Dr Anil Jayantha Fernando told parliament. GSP+ is the highest scheme the EU offers developing countries; in return for implementing 27 international conventions on human rights, labour standards, environmental protection and good governance, it cuts tariff lines on two-thirds of products to zero.

Answering a question from opposition member Ravi Karunanayake, the minister said the EU's new GSP framework takes effect on January 1, 2027 and runs until December 31, 2036. Current beneficiary countries must reapply under the new framework, but may continue on the current terms during a transitional period until December 2028. Sri Lanka will apply within that window, he said.

The preferences are crucial for the apparel sector, the country's largest export earner. Apparel exports earn about 5 billion dollars a year and account for over 40 percent of total goods exports, of which the EU absorbs more than 30 percent.

Meanwhile, the Joint Apparel Association Forum (JAAF) has warned that the government's proposed anti-terrorism law could become a 'major obstacle' to the GSP+ application. Because the preference scheme is conditional on implementing 27 international conventions, the EU will take the new law into account when Sri Lanka reapplies in 2027, the organisation points out.