The Minister of Export Development & International Trade and Acting Minister of Posts and Telecommunication, Prof. G. L. Peiris, MP, expressed his deep disillusionment with several developments in the decision making process of the EU with regard to the GSP+ issue.

"We find particularly disconcerting attitudes directly linked to subjective views, expressed in formal discussions with surprising lack of restraint, by officials of the Commission with regard to a wide range of issues within Sri Lanka’s sovereign competence including the acceptability of military action in the country", he further stated replying to a special statement made by Chief Opposition Whip on the GSP+ issue.

"It is fundamentally wrong, and in any event demonstrably incompatible with the conceptual framework to use GSP+ as a weapon to coerce the government of Sri Lanka into making departures from core national policies which have been formulated and are being implemented, with the overwhelming support of our people. Indeed we have reasons to protest vehemently against the threatened use of GSP+ as "a powerful weapon" against our country for any purpose whatsoever", he added.

The Minister further stated that the GSP+ concessions is beneficial especially to the garment sector thus to women's empowerment since a significant majority of the garment industry employees are women.

"The Government will continue its engagement with the relevant authorities in a spirit of commitment and dedication in accordance with the principles I have explained", the Minister said.

Meanwhile, the Central Bank says the losing of GSP Plus would not have an adverse impact on Sri Lanka’s exports reported the Island.
In a statement released last evening, the Central Bank said the GSP Plus trade concession to the regions of the European Union amounted to 1.4 percent of total export earnings from the region.

"According to the European Commission’s estimate, the total value of benefits in terms of lower import duties under the GSP+ scheme for the year 2008 was euro 78 million which is only 1.4 per cent of Sri Lanka’s total exports in the same year," the Central Bank said.

"Therefore, the loss of preferential duty margin by around 6 to 7 percent arising from a potential withdrawal of the GSP plus facility is not expected to have an adverse impact on Sri Lanka’s exports," it said.

A verdict on whether or not Sri Lanka is to get the GSP Plus trade concessions extended is expected to be made in January next year.