Sri Lanka sends mixed signals on GSP+

By Santhush Fernando
Barely a week after Central Bank (CB) Governor Ajith Nivard Cabraal told BBC’s “Hardtalk” programme that the European Union’s (EU) GSP+ (Generalised System of Preferences) facility was not “really necessary” for Sri Lanka’s apparel sector, two senior ministers were seen appealing for it last week.

Minister, International Trade, Prof G.L. Peiris and Minister, Investment Promotions, Dr. Sarath Amunugama appealed to the visiting CEO, Marks & Spencer (M&S), Sir Stuart Rose, during a factory re-opening last Friday, to do everything possible to renew the duty concessions granted to Sri Lanka.

The head of the United Kingdom’s largest clothing operator was on a one-day visit to Sri Lanka for the official commissioning of a converted apparel factory of the country’s premier garment manufacturer—Brandix Casualwear, in Seeduwa.

“We appeal to Sir Rose to do the best you can in getting back GSP+ facility for Sri Lanka,” said Prof. Peiris who returned recently to the country, after a failed mission in Brussels, to secure the GSP+ facility.

“We have requested the EU not to consider issues regarding Sri Lanka independently but attempt to see the total picture. We appeal to Sir Stuart Rose to represent our interests in the EU,” his colleague Minister Sarath Amunugama said.

The Ministers requested the global garment legend, knighted recently for his services to the retail industry and corporate social responsibility (CSR), to review the commitment of Sri Lankan companies towards social equity.

The Bottomline’s sister paper, The Nation, reported last week that a covert EU fact-finding mission in Colombo, had warned that the government’s lukewarm response towards addressing substantial issues in the backdrop of a worsening human rights record, is set to affect the country drastically, resulting in a severe economic impact via the GSP+ facility.