Reform implementation key for GSP+: EU

Time to implement reforms developed in recent years: EU Amb. Moreno 

Approx. 61% of exports to EU are covered by GSP+ concessions

Sri Lanka must implement reforms it has been formulating in the past few years, with the goal of becoming a better trade partner to the European Union and consider opening market access to the 27-nation bloc, European Union Ambassador to Sri Lanka Carmen Moreno said recently (29 May).

“What we are looking at is a very different country with a willingness to reform. There will be some time until reapplication. It’s also a good opportunity to put these reforms that have been formulated into motion,” Moreno said, referring to Sri Lanka’s reform-based efforts to meet the EU’s standards of trade, particularly in line with the Generalised Scheme of Preferences (GSP+).

The GSP+ provides preferential duty-free access to the 27-nation European Union (EU) bloc.

Speaking at the Sri Lankan-German Business Forum 2026, Moreno added: “We would like to see more reforms that indicate this openness of Sri Lanka really. Many people don’t know that privilege can be withdrawn also for unfair trade practices of which Sri Lanka knows a lot.”

Sri Lanka briefly lost its GSP+ status in 2010, and was officially reinstated in 2017. Since regaining member status, Sri Lanka’s export revenue to the EU reached a record high in 2021, when it saw $ 4.21 billion in revenue.

Based on export data, roughly around 61% of Sri Lanka’s exports to the EU are covered by the GSP+ concessions. As a country which benefits from the preferential access under the scheme, Sri Lanka is necessitated to implement 27 international conventions, which uphold standards across human rights, labour rights, the environment, and good governance.

According to a study by the Institute of Policy Studies (IPS), Sri Lanka’s total export revenues earned from the bloc in 2023 made up 30.08% of total yearly export revenue, with the last known collective sum of export value recorded at $ 3.63 billion, which included exports to the United Kingdom too.

Earlier this year, Minister of Foreign Affairs Vijitha Herath said that Sri Lanka is to repeal the Prevention of Terrorism Act (PTA) and seek amendments to the Online Safety Act (OSA) in its bid to reapply for the GSP+. The EU has in the past raised concerns over Sri Lanka’s PTA and Anti-Terrorism Act (ATA) during its draft stage.

“Let’s stop perceiving market access as a threat. It’s not a threat – it’s a big opportunity, or at least we believe so. The European Union continues to seek market access all over the world. We have just finalised with Indonesia. We are still negotiating with Thailand and Malaysia. We have just signed with Mexico. As big as we are and as much money as we make of trade, we keep on opening markets,” Moreno said.

Sri Lanka’s export revenues to all five major EU markets saw cumulative year-on-year increases in 2025, with Germany ($ 706.49 million) seeing a 12.45% increase, Italy ($ 679.77 million) with a 14.16% increase, Netherlands ($ 474.8 million) with a 20.63 % increase, France ($ 277.18 million) with a 5.09% increase and Belgium ($ 254.44 million) with a 6.42% increase.

“This is our message – also GSP is an opportunity. Please use it as much as you can, but also take into account that reforms have to be undertaken to make this potential a reality,” Moreno concluded.

Source: The morning