GSP+ loss takes its toll on textile industry

by admin
Nov 21, 2012

According to the Ceylon Chamber of Commerce's data, Sri Lanka’s export during the first quarter of FY 13 earnings from textile and garments has declined 4.3 percent.

(See here and here).

In 2000, garment exports accounted for 49 percent of the country’s total export, by 2011 that margin dropped to 38 percent. Industry analysts believe the decline is a reflection of the loss of EU’s GSP (Generalized System of Preferences) plus based on Sri Lanka’s poor human rights track record.

European Union accounts for nearly 50 percent of apparel exports with the US being the second largest. It has been estimated that Sri Lanka has lost 1 billion in US dollars since the EU suspension of GSP+.

Rohan Abeykoon, Chairman of the Sri Lanka Apparel Exporters Association, seemed to think some progress had been made and urged the government to reapply for EU’s GSP+:

“We understood the government’s difficulty in complying with original conditions laid down by the EU. Now, with the progress made we can re-open the discussion.”

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