By Roy Denish.
Sri Lanka’s vital apparel industry could face a severe new economic shock as continued political indecision over replacing the Prevention of Terrorism Act threatens the country’s GSP+ trade concessions. With duty-free access to European markets hanging in the balance, exporters may soon be forced to fight for survival amid rising costs, shrinking margins and mounting pressure on foreign exchange earnings.
Sri Lanka risks losing critical European Union trade concessions if the government continues to delay replacing its controversial anti-terror law, a prominent opposition lawmaker warned Tuesday.
Professor G.L. Peiris, speaking to The Daily Mirror, said the country’s failure to repeal the Prevention of Terrorism Act (PTA) directly threatens its Generalised Scheme of Preferences Plus (GSP+) status. The trade program grants Sri Lankan exporters duty-free access to EU markets, a vital lifeline for the island nation’s apparel and manufacturing sectors.
“The procrastination in introducing alternative legislation to wipe out the PTA carries the immediate consequence of losing these trade benefits,” Peiris said.
Peiris, a vocal critic of the law, noted that the EU has repeatedly conditioned the renewal of GSP+ benefits on Sri Lanka’s compliance with international human rights standards. The current PTA has faced decades of domestic and international criticism for allowing prolonged detentions without formal charges.
The warning comes as Sri Lanka navigates strict economic benchmarks tied to its International Monetary Fund recovery program, which is scheduled to conclude its current phase in March 2027. Lawmakers and industry leaders fear that losing the tariff exemptions would devastate foreign exchange revenues at a time when the economy remains highly vulnerable.
While the government has previously promised the U.N. Human Rights Council and EU delegates that it would draft a compliant counter-terrorism law, Peiris accused officials of a lack of transparency, stating that the proposed alternative legislation has yet to face proper public or parliamentary scrutiny.
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