GSP+ big boost to exports, Business Chamber says

The Colombo-based Business Chamber of Commerce has expressed its happiness that Sri Lanka has finally been able to regain GSP+ which will undoubtedly have a significant impact on exports.

"We are happy to join the rest of the chambers of commerce and all other trade promotion organisations in offering our congratulations to the Government which pursued the goal of regaining GSP+ with tenacity and demonstrated its ability to meet conditions stipulated by the EU in order to regain the facility," the chamber said in a statement to the media.

"It is needless to state the vital importance of entering the EU on reduced or zero rated duties. The EU which has a population of about 500 million comparatively affluent people is a core segment of market access for local products. Such access on concessionary terms had been deprived to exporters since 2010," it said.

Since the advent of the present administration in 2015, substantial improvements to the socio-economic fabric of this country, besides the restoration of fundamental tenets of equitable governance especially human rights have been duly recognized by the EU. But it is important to improve on the situation to inspire further confidence within the EU. In this connection the EU will examine closely whether Sri Lanka will observe about 27 international covenants it had agreed to observe, the chamber noted.

"It is necessary for all stakeholders to make a united effort to derive the maximum advantage from GSP+. It is expected that garments will be able to generate additional export income reaching US$500 million. The export oriented small and medium sector which is basically involved in subcontracting would also benefit from GSP+. Fisheries is another key sector that stands to gain. Though the process involved in fish exports is complex, this could be overcome in the future so as to capitalize on the zero duty facility to be afforded to this sector as well.

There are several other sectors too like leather, ceramics, gems and jewellery besides dessicated coconut which could substantially gain. What is however required is a collaborative and a coordinated endeavor in which all exporters could achieve maximum benefits and add momentum to our exports to the EU," the chamber said.

We are happy to join the rest of the chambers of commerce and all other trade promotion organisations in offering our congratulations to the Government which pursued the goal of regaining GSP+ with tenacity and demonstrated its ability to meet conditions stipulated by the EU in order to regain the facility