By The Pulseline News Desk
The European Union (EU) has called on Sri Lanka to accelerate a broad range of human rights and governance reforms, warning that stronger progress in these areas remains important as the country seeks to maximise the economic benefits of the EU’s GSP+ trade concession.
The recommendations are contained in the EU’s latest assessment of Sri Lanka under the Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+), set out in a joint report to the European Parliament and the Council.
The report, now in the public domain, highlights concerns over the treatment of civil society and calls on the Sri Lankan authorities to address what it describes as targeted intimidation, harassment and surveillance of civil society actors by security forces.
It also urges the Government to urgently address torture, police abuse and deaths in custody through effective accountability mechanisms.
On capital punishment, the EU has called for the introduction of a formal moratorium on the death penalty as a step towards its eventual abolition.
The report’s recommendations extend to Sri Lanka’s counter-terrorism framework, civic freedoms and digital regulation.
Among its key recommendations is the repeal of the Prevention of Terrorism Act (PTA) and the adoption of anti-terrorism legislation that is consistent with international human rights standards. The EU has also called for greater protection of civic and democratic space.
The Online Safety Act (OSA) has come under particular scrutiny, with the EU calling for its repeal as part of measures to safeguard freedom of expression.
The assessment also places emphasis on gender equality and the protection of vulnerable groups. It calls for stronger measures to combat domestic, sexual and gender-based violence and child abuse, including through the prohibition of child marriage.
GSP+ remains economically significant
The EU’s assessment comes as Sri Lanka continues to benefit significantly from preferential access to the European market under GSP+, which was reinstated for the country in 2017.
Sri Lanka is currently the third-largest beneficiary of the GSP+ scheme. According to the report, imports utilising GSP+ preferences reached EUR 1.5 billion in 2024, while GSP+-eligible products accounted for 83.5% of Sri Lanka’s total imports covered by the scheme.
The country is estimated to have benefited from approximately EUR 139 million in tariff exemptions during 2024 as a result of GSP+ preferences.
However, the EU says there remains considerable room for Sri Lanka to increase the economic gains from the scheme.
Sri Lanka’s GSP+ utilisation rate stood at 68.9% in 2024, indicating that a significant portion of the potential preferential access available to exporters was not fully utilised.
The EU assessment therefore presents a dual challenge for Sri Lanka: maintaining and strengthening compliance with the human rights and governance commitments linked to GSP+, while also improving the country’s ability to take advantage of the trade opportunities the scheme provides.
For Sri Lankan exporters, particularly those dependent on European markets, the issue is consequently not simply one of retaining preferential market access. Better utilisation of GSP+ could provide additional opportunities to expand exports and diversify the country’s foreign exchange earnings.
The latest EU recommendations place the emphasis firmly on reforms, however, suggesting that the future benefits of the arrangement will continue to be closely linked to Sri Lanka’s progress in meeting its commitments on human rights, democracy, rule of law and sustainable development.
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