The government says the absence of the Generalized Scheme of Preferences or GSP+ tax concession resulted in Sri Lanka’s economy to incur losses of 375 Billion rupees.
Issuing a statement, the Government Information Department said the GSP+ was completely removed from Sri Lanka in 2010 after the tax concession was limited to the country in 2007 due to the activities of the previous tenure of the United People’s Freedom Alliance led government.
The statement said the one-way trade preference would consist of the full removal of duties on 66% of tariff lines. Accordingly, trade barriers imposed on Sri Lanka’s export industries including textiles, fisheries and rubber production will be completely removed.
The European Commission yesterday proposed to grant Sri Lanka the GSP+ tax concession by considering several factors including the establishment of good governance, the implementation of the 19th Constitutional amendment and the strengthening human rights.
The proposal will be ratified following the approval by the European Council and the European Parliament.