The European Union (EU) delegation expected in Sri Lanka from 28 April to 7 May as a part of a monitoring mission to study the country’s compliance with the requirements for the EU’s GSP+ facility is expected to meet with the Ministries of Foreign Affairs, Environment, and Labour as part of its mission, a senior official of the Ministry of Foreign Affairs stated.

Sri Lanka’s Generalised Scheme of Preferences Plus (GSP+) trade benefits with the European Union are set to undergo changes starting in 2027, with possible withdrawal of the facility. 

The EU plans to introduce new guidelines for the scheme, which will require beneficiary countries to meet stricter obligations, including compliance with international conventions on human rights, labour, environmental protection, and good governance.

A new study by the Institute of Policy Studies (IPS) warns that Sri Lanka could lose up to $ 1.23 billion if it loses its GSP+ trade benefits with the EU. 

Without GSP+, Sri Lanka will face higher tariffs, potentially losing 36.7% of exports to the EU. 

The study highlights impacts on sectors like high-tech products (e.g. transformers), with a potential 10% export decline, and the wearing apparel sector, which could see tariffs rise by nearly 10%. 

This decline in exports could lead to significant job losses, particularly in the manufacturing sector, affecting 73,574 workers, mostly women and low-skilled employees. 

The report stresses that losing GSP+ at Sri Lanka’s current development stage would be more damaging than at a later stage when the economy is stronger.