News

EU raises concerns over Sri Lanka’s current import restrictions

The Delegation of the European Union (EU) and the Embassies of France, Germany, Italy, Netherlands and Romania raised concerns over the current import restrictions imposed by the Sri Lankan Government.

In a statement, they said the current import restrictions are having a negative impact on Sri Lankan and European businesses, and on Foreign Direct Investment. “Trade, however, is not a one-way street.”

“Such measures impair Sri Lanka’s efforts to become a regional hub and negatively impact Sri Lankan exports by constraining the import of raw material and machinery. We recall that a prolonged import ban is not in line with World Trade Organisation regulations,” it said

The Colombo-based Heads of Missions representing the European Union and its Member States, held a series of high-level meetings, including with Foreign Minister Dinesh Gunawardena.

“On this occasion, we underlined the EU’s long-standing support for Sri Lanka as a reliable partner, including through over 1 billion EUR of grants over the last 25 years, notwithstanding the Member States’ bilateral assistance.

“In addition to our significant development cooperation, we recall that the EU is a crucial economic partner for Sri Lanka. Thanks to the EU’s special Generalised System of Preferences (GSP+), Sri Lanka enjoys competitive, predominantly duty- and quota-free access to the EU market, based on the continued implementation of 27 international conventions on human rights, labour, environment, climate change and good governance.

“Not least due to these unilateral trade preferences, the EU is the second biggest export market for Sri Lanka worldwide, with a positive trade balance of more than 1 billion EUR (about 220 billion LKR) in 2018 and 2019,” the Embassies said.