President Anura Kumara Dissanayake’s government hailed for governance reset as EU expresses confidence in trade partnership revival
(Lanka-e-News -30.April.2025, 11.40 PM) In a development poised to reshape Sri Lanka’s export-led recovery, the European Union has expressed a favourable position on granting continued access to the Generalized Scheme of Preferences Plus (GSP+) trade concessions, following detailed bilateral talks between President Anura Kumara Dissanayake and a high-level EU delegation led by Charles Whiteley, Head of the South Asia Division at the European External Action Service.
The meeting, held at the Presidential Secretariat in Colombo, marks a crucial turning point in Sri Lanka’s post-crisis trajectory. The EU’s tentative endorsement of GSP+ comes at a time when the island nation is striving to emerge from the ashes of sovereign default, supply chain fractures, and political instability.
“We are positively considering the GSP+ review in light of recent progress,” Whiteley said after the closed-door meeting. “Sri Lanka’s renewed commitment to international conventions, transparency, and rule of law is encouraging. The European Union remains a partner in this path to responsible growth.”
The GSP+ scheme, which grants developing countries preferential access to EU markets in exchange for the implementation of 27 core international conventions on human rights, labour standards, environmental protection, and good governance, is more than a diplomatic token — it is an economic lifeline.
For Sri Lanka, apparel, fisheries, rubber, spices, and ceramic exports to the EU have long benefited from tariff exemptions under this scheme. With the GSP+ concessions in place, over €3 billion in Sri Lankan exports enter EU markets each year, forming a backbone of the country’s trade profile.
The possibility of losing this preferential access has loomed large in recent years, particularly under previous governments that struggled with EU demands on human rights and judicial reform. The Dissanayake administration, however, appears to have broken that logjam with swift, if still nascent, governance restructuring.
President Dissanayake, a former firebrand leftist and now the steward of a pragmatic reform agenda, expressed gratitude for the EU’s continued engagement. But he also issued a bold indictment of the country’s past governance failures.
“Our economic collapse,” he said, “was not an accident. It was a direct consequence of decades of misrule, institutional decay, and endemic corruption. We are not looking for sympathy — we are undertaking a fundamental reset.”
What sets this administration apart, he said, is not just its ideological distance from the Rajapaksas or Wickremesinghe-era economic management, but its multi-ethnic mandate — won with support from Sinhala, Tamil and Muslim communities across the island.
“This is the first government in decades that was not elected solely on a Southern Sinhala vote base,” the President said. “Our legitimacy stems from national consensus, and with that comes a deeper responsibility — to deliver for all.”
Under EU regulations, access to GSP+ is conditioned on “effective implementation” of 27 conventions ranging from the International Covenant on Civil and Political Rights to ILO conventions on forced labour, child labour, and trade union rights. Sri Lanka’s track record on these fronts has been mixed at best.
The EU delegation reviewed the country’s recent improvements, including:
Repeal of arbitrary security laws, such as revisions to the Prevention of Terrorism Act.
Enhanced labour protections in key export sectors.
Commitments to judicial independence and anti-corruption mechanisms.
Reinstatement of civic space for minority and opposition voices.
Whiteley was measured but optimistic: “We do not expect miracles overnight, but we do expect credible progress. Sri Lanka’s early steps are promising. GSP+ is not a gift — it is earned. And we believe the current trajectory merits support.”
The importance of the meeting was underscored by the composition of the Sri Lankan delegation. Attending alongside the President were:
Dr. Anil Jayantha Fernando, Minister of Labour, who briefed the EU on new regulatory safeguards for garment workers.
Harshana Nanayakkara, Minister of Justice and National Integration, who outlined steps toward constitutional reform and transitional justice.
Dr. Harshana Suriyapperuma, Deputy Minister of Finance and Planning, who discussed Sri Lanka’s roadmap for debt restructuring and fiscal prudence.
The EU side included Ambassador Carmen Moreno, Mr. Guido Dolara of the European Commission’s Directorate-General for Trade, and Ms. Galija Agisheva, Desk Officer for Sri Lanka.
Officials described the tone of the meeting as “candid but cooperative,” with the President inviting EU technical teams to conduct regular reviews on compliance and implementation.
Within hours of the announcement, Sri Lanka’s apparel sector, which comprises nearly 50% of exports to the EU, responded with restrained elation.
“GSP+ is not a bonus — it’s a prerequisite for survival,” said Tuli Cooray, Secretary General of the Joint Apparel Association Forum (JAAF). “Losing it would have priced us out of global markets. Today’s statement restores hope.”
Economists echoed this view.
“This is not just about trade — it’s about investor confidence,” said Dr. Nandalal Weerasinghe, Governor of the Central Bank. “Multilateral endorsement sends a powerful signal to global markets. It lowers risk premiums and improves our negotiation position with creditors and multilaterals.”
While the government basks in what some describe as a diplomatic “seal of approval,” critics warn against complacency.
“The President is articulate, yes. But can he deliver?” asked Harsha de Silva, MP and economist. “GSP+ is a carrot. If we don't follow through with institutional reform, the stick will follow.”
Human rights watchdogs were even more pointed.
“GSP+ cannot become a greenwashing mechanism for governments,” said Ambika Satkunanathan, former Human Rights Commissioner. “The EU must hold Sri Lanka to the letter and spirit of the conventions. Otherwise, the victims of past abuses remain forgotten.”
What distinguishes this iteration of GSP+ talks from earlier ones is the tone: less transactional, more principled — yet also pragmatic.
For the EU, Sri Lanka is a pivotal partner in the Indian Ocean — strategically located, economically vulnerable, but rich in potential. For Sri Lanka, the EU represents more than a trade bloc — it’s a model for multilateralism and post-war economic revival.
“We are not seeking charity,” said President Dissanayake in his final remarks. “We seek partnership — one based on shared values, mutual respect, and long-term stability.”
He added, “The EU is not merely investing in Sri Lanka. It is investing in the idea that countries like ours can rise from ruin — with dignity intact.”
The GSP+ endorsement is, for now, preliminary. The official review will continue over the coming months, with assessments scheduled for Q3 of 2025, followed by a formal vote at the European Parliament. But all signs point to approval, provided reforms continue.
What remains to be seen is whether the new administration, still in its honeymoon phase, can translate momentum into measurable outcomes.
“If we fail now,” said one senior EU diplomat off the record, “it won’t just be a missed economic opportunity — it will be a betrayal of hope, for both sides.”
-By LeN Economics Editor
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by (2025-04-30 19:17:09)
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