The European Union is unlikely to renew GSP+ concessions to Sri Lanka, a leaked report suggested.
A confidential 130-page report obtained by The Economist concludes that Sri Lanka has “failed to honour important human-rights commitments, and is ineligible for GSP Plus.”
The report, conducted by EU investigators, said that there was “complete or virtually complete impunity in Sri Lanka” and referred to the IDP internment camps as a “novel form of unacknowledged detention”.
It also includes allegations that Government backed paramilitary groups were involved in “child abductions, torture and killings of civilians”.
The Economist commented that “rarely has a government soiled its reputation as dramatically as Sri Lanka’s”.
The EU ambassador to Sri Lanka, Bernard Savage declined to comment on any of the findings of the report.
"The full text of that has been made available to the Sri Lankan authorities. Once we have gathered all the reactions, particularly those of the Sri Lankan government, the report will be finalised within a short time," he told the new magazine.
Sri Lanka’s Trade Ministry released a statement admitting it was “very unlikely” that they would keep hold of the GSP Plus concessions, following a damning 130-page report by the European Union.
S Rannugge, secretary in Sri Lanka`s Export Development and International Trade Ministry, confirmed that the review highlighted human rights abuses and torture allegations carried out by the Sri Lankan Government.
Colombo has been under scrutiny from Western nations, following the final phase of the 25 year civil war.
The manner in which the war was fought, with reports of thousands of civilian deaths, left Sri Lanka facing heavy criticism for its tactics.
Sri Lanka’s admission into the GSP Plus program has been under review since October 2008, after increasing pressure on the EU to investigate human rights abuses.
Since then, investigators have been refused entry into the country and categorically rejected by the Sri Lankan Government.
The GSP Plus program allows Sri Lanka to export over 7,200 items to the EU duty free, it being the only country in South Asia to have this privilege.
Companies such as Marks & Spencer’s have benefitted from this the most, allowing them to import low cost garments into their European stores tax free.
If the GSP plus program is withdrawn, it is likely that these companies will move their factories elsewhere.
Sri Lanka’s textile industry netted a record $3.47 billion from EU markets last year, making it the country’s top source of foreign exchange, followed by remittances of $3 billion and tea exports of $1.2 billion.
Before the GSP plus program was in place, the USA was the biggest buyer of Sri Lankan goods. Now the European Union is the largest export market for Sri Lanka accounting for 36% of all exports.
The review follows a number of countries, including Britain and the USA, publicly abstaining from voting for Sri Lanka to receive a $2.6 billion loan from the IMF in July.
Randeep Ramesh, India correspondent for the Guardian, labelled this “an unprecedented move”, whilst also commenting, that, “if the EU does withdraw the trade concession it will mark a turning point in relations.”
A final decision is to be made in October, but even Sri Lanka is not confident that they will continue to enjoy this benefit. The final decision is non-appealable.
A confidential 130-page report obtained by The Economist concludes that Sri Lanka has “failed to honour important human-rights commitments, and is ineligible for GSP Plus.”
The report, conducted by EU investigators, said that there was “complete or virtually complete impunity in Sri Lanka” and referred to the IDP internment camps as a “novel form of unacknowledged detention”.
It also includes allegations that Government backed paramilitary groups were involved in “child abductions, torture and killings of civilians”.
The Economist commented that “rarely has a government soiled its reputation as dramatically as Sri Lanka’s”.
The EU ambassador to Sri Lanka, Bernard Savage declined to comment on any of the findings of the report.
"The full text of that has been made available to the Sri Lankan authorities. Once we have gathered all the reactions, particularly those of the Sri Lankan government, the report will be finalised within a short time," he told the new magazine.
Sri Lanka’s Trade Ministry released a statement admitting it was “very unlikely” that they would keep hold of the GSP Plus concessions, following a damning 130-page report by the European Union.
S Rannugge, secretary in Sri Lanka`s Export Development and International Trade Ministry, confirmed that the review highlighted human rights abuses and torture allegations carried out by the Sri Lankan Government.
Colombo has been under scrutiny from Western nations, following the final phase of the 25 year civil war.
The manner in which the war was fought, with reports of thousands of civilian deaths, left Sri Lanka facing heavy criticism for its tactics.
Sri Lanka’s admission into the GSP Plus program has been under review since October 2008, after increasing pressure on the EU to investigate human rights abuses.
Since then, investigators have been refused entry into the country and categorically rejected by the Sri Lankan Government.
The GSP Plus program allows Sri Lanka to export over 7,200 items to the EU duty free, it being the only country in South Asia to have this privilege.
Companies such as Marks & Spencer’s have benefitted from this the most, allowing them to import low cost garments into their European stores tax free.
If the GSP plus program is withdrawn, it is likely that these companies will move their factories elsewhere.
Sri Lanka’s textile industry netted a record $3.47 billion from EU markets last year, making it the country’s top source of foreign exchange, followed by remittances of $3 billion and tea exports of $1.2 billion.
Before the GSP plus program was in place, the USA was the biggest buyer of Sri Lankan goods. Now the European Union is the largest export market for Sri Lanka accounting for 36% of all exports.
The review follows a number of countries, including Britain and the USA, publicly abstaining from voting for Sri Lanka to receive a $2.6 billion loan from the IMF in July.
Randeep Ramesh, India correspondent for the Guardian, labelled this “an unprecedented move”, whilst also commenting, that, “if the EU does withdraw the trade concession it will mark a turning point in relations.”
A final decision is to be made in October, but even Sri Lanka is not confident that they will continue to enjoy this benefit. The final decision is non-appealable.
