Sri Lanka is not interested in renewing GSP+ with EU

Sri Lanka has told a visiting European Union delegation that it does want to renegotiate the withdrawn GSP+ tariff concession and it is a "closed book".

Addressing a press conference Friday, Jean Lambert, the leader of the visiting European Sri Lankan inter- parliamentary delegation said from talks with Sri Lankan government officials they understand the government is no longer intending to renew the GSP+ trade deal.

"Our understanding from what the government is telling us is that for (the government) this is a closed book - it does not intend to put in a further application for GSP Plus," Ms. Lambert said at the media briefing.

Lambert said the government instead had asked to develop a relationship on a fresh basis and asked for EU support for small and medium enterprises and training in skills development and marketing.

"The government now hopes to look toward small and medium enterprise development with the EU- move on from the GSP+ issue and develop a better relationship," she added.

The European Union, citing Sri Lanka's failure to meet human rights conventions relevant for benefits under the scheme, suspended the Generalized System of Preferences (GSP) plus tariff concession for Sri Lanka that provided tax free access to European markets for the country's products, especially for garment exports in August 2010.

The seven-member delegation which toured many parts in the island expressed satisfaction in Sri Lanka's achievements with post-war development programs, especially in education and healthcare.

The delegation commended the government's initiatives to resettle the displaced people in the Northern and Eastern provinces while pointing out the need to focus more attention to enhance the sources of revenue of the people in the North and to develop the agricultural sector.

Lambert said the government has properly pointed out its need to resolve ethnic problems by appointing the Lessons Learnt and Reconciliation Commission.

Although the delegation is impressed by the pace of resettlement and reconstruction in the North, the EU still has concerns regarding the human rights situation, good governance, and detention of Tamil rebels and resettlement of people displaced by war, Lambert said.

The delegation also met with the Speaker of Parliament Chamal Rajapaksa and Economic Development Minister Basil Rajapaksa, with other government leaders, opposition politicians, and civil society representatives.

The delegation pledged European Union's continuing assistance to Sri Lanka for its development programs.