SRI LANKA - EU PARTNERSHIP AND GSP+ COMPLIANCE

Sri Lanka's trade relations with the European Union (EU) have been significantly shaped by the Generalised Scheme of Preferences Plus (GSP+), a trade concession that provides the country with preferential access to the EU market. As a GSP+ beneficiary, Sri Lanka must comply with 27 international conventions on human rights, labour rights, environmental protection, and good governance. In April 2025, the EU's monitoring mission is scheduled to visit Sri Lanka to assess its compliance with GSP+ commitments for the period from 2022 to 2024. The EU engages in continuous dialogue with GSP+ countries through bilateral meetings, high-level diplomatic discussions, and technical cooperation, with biennial monitoring missions serving as a key oversight mechanism.

- By Grace Asirwatham (retired Ambassador)

These missions focus on providing constructive feedback and recommendations rather than imposing immediate punitive measures, allowing beneficiary countries to address shortcomings and improve compliance. As a former head of Sri Lanka's mission to the EU, I provide insights into the procedural aspects and objectives of the monitoring mission. This article examines Sri Lanka's relations with the EU, the significance of the GSP+ trade facility, the proposed revisions to the GSP regulation, and Sri Lanka's engagement with the EU to sustain GSP+ trade relations.

Sri Lanka-EU Relations

The EU and Sri Lanka share a long-standing partnership spanning political, economic, and development cooperation. Official relations date back to 1962 and were further strengthened with the establishment of the EU Delegation Office in Colombo in 1995. This partnership is governed by the Cooperation Agreement on Partnership and Development, which promotes collaboration in governance, human rights, and trade.

Sri Lanka was first granted GSP+ in 2005 to support its post-tsunami recovery but lost this preferential status in 2010 due to non-compliance with EU conditions. In 2017, Sri Lanka regained GSP+ status after demonstrating progress in implementing the required international conventions. This renewal has provided Sri Lanka with duty-free access to the EU market for key exports, particularly in textiles, garments, and seafood.