The government spokesman Media and Information Minister Keheliya Rambukwella addressing the media today said that there would not be any change in the government's position regarding the EU decision on the GSP+ tariff concession.
"We will not accept the conditions put forward by the EU. We are very clear on that. The Sri Lankan government has made alternative arrangements to meet the consequences. The GSP loss is only around 85 Million Euros and we are also looking at other markets to meet our needs," Minister Rambukwella said.
The Minister said the issue of GSP+ withdrawal has been extensively discussed over the past two years and the government, the Central Bank, as well as many Sri Lankan exporters to the EU have already taken several measures to deal with the loss.
The EU today said that it would suspend the GSP+ trade privilege to Sri Lanka from August 15 but assured that Sri Lanka will still enjoy the standard GSP facility for exports to the European market competing with other countries.
Last week the Central Bank pointed out the measures the government had taken to alleviate the losses from the GSP+ suspension.
According to the Bank, ending the three-decade long armed conflict has significantly improved the Sri Lankan business environment and confidence levels as opposed to the environment prevailed when the GSP+ facility was granted following the devastation by the tsunami in 2004.
Some of the measures taken by the government include improving the Sri Lankan business environment and confidence levels significantly, by ending the conflict, stabilizing and improving almost all macro-economic fundamentals, achieving a low level of inflation significantly reducing the pressure on cost of inputs, establishing lower rates of interest substantially reducing the cost of borrowing and building up foreign reserves to historically high levels enhancing investor confidence in the Sri Lankan economy.
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