With a European Union (EU) delegation expected at the end of next month, the Sri Lankan government is under pressure to fulfill key obligations, including repealing the Prevention of Terrorism Act (PTA) and amending the Online Safety Act, to qualify for the Generalised Scheme of Preferences Plus (GSP+) under the new guidelines, diplomatic sources told media.
The government is also required to strengthen anti-corruption measures as part of the revised criteria for GSP+ eligibility, which will apply from 2027.
GSP+ is a special trade incentive that grants zero tariffs to vulnerable low- and lower-middle-income countries that implement 27 international conventions on labour rights, human rights, environmental protection, and good governance.
Under the updated system, compliance with all conventions, including environmental and governance-related commitments, will be mandatory.
A mechanism has also been introduced for the rapid withdrawal of the facility if obligations are not met.
Beneficiary countries will be given a two-year transition period to ratify newly added conventions and must submit a detailed implementation plan.
The EU has already informed Sri Lanka that the current form of the PTA is unacceptable.
The new system will also require strong anti-corruption measures, including stricter laws against bribery and transparent public procurement processes.
Sri Lanka previously lost GSP+ and only regained it in 2017 with a commitment to repeal the PTA.
Currently, Sri Lanka’s trade volume with the EU stands at $3.2 billion, with the trade balance in its favor.
